Health
8:40 pm
Tue May 21, 2013

Henry Ford, Beaumont health care systems call off mega-merger

Credit Adrian Clark / flickr

A planned mega-merger between two of Michigan’s largest health systems has been scuttled.

Beaumont and Henry Ford health systems are two of southeast Michigan’s three largest health care providers.

When their leaders signed a letter of intent to merge last fall, they made it seem like a done deal—one that embraced new, sweeping changes to both institutions as they embraced “economies of scale,” the Affordable Care Act, and other major changes in the health care industry.

But apparently, negotiations didn’t work out so well.

On Tuesday, Henry Ford CEO Nancy Schlichting sent a letter to employees, indicating they’ll end talks and let the agreement expire.

“It became apparent that two very different perspectives have emerged for the new organization between Henry Ford and Beaumont,” Schlichting wrote.

Schlichting said it become clear that “many of the foundational elements in the Letter of Intent, including preserving two academic medical centers in Detroit and Royal Oak, were no longer supported by some leaders at Beaumont.”

Beaumont then sent out a similar statement from their President and CEO, Gene Michalski.

“We found through our discussions that we are not aligned on how to achieve our vision for a model health system due to differences in our structures and business models,” Michalski said.

The $6.6 billion deal would have combined all of the assets, liabilities and operations of Beaumont and Henry Ford.