Beaumont Health and Spectrum Health, two of the most respected health systems in Michigan, announced today they have signed a Letter of Intent (LOI) to explore creating a new health system. Leaders from Beaumont Health and Spectrum Health believe that creating a new Michigan-based health system will build a stronger future that provides more accessible, affordable and equitable health care and coverage for people across the state. Priority Health, Spectrum Health’s top-rated, Michigan-based health plan, will also be part of the new system.
The new organization will be governed by a new systemwide Board of Directors. The 16-member Board will include: seven seats appointed by Beaumont Health, seven seats appointed by Spectrum Health, the President & CEO of the new system, and a new Board member to be appointed following the creation of the new system. The Board will include at least three physicians.
Spectrum Health President and CEO Tina Freese Decker would run the new health system, which would take on the temporary name of “BHSH System.”
A combined health system between Grand Rapids-based Spectrum and Beaumont would have 22 hospitals, 305 outpatient care centers and about $13 billion in operating revenue. The combined company would have more than 7,500 employed, affiliated and independent physicians.
The new system will operate dual headquarters in Grand Rapids and Southfield.
Beaumont Health and Spectrum Health are strong brands in their respective markets. There will be no immediate changes to the legacy brands. Those names will remain in their local markets pending adoption of the overall branding plan by the System Board. The new BHSH System will work together to determine a path forward that honors both legacy brands and will engage physicians, team members, donors and the community in that process.
Local fiduciary boards with committed community board members will remain in place to provide governance and leadership to the BHSH Beaumont Health, BHSH Spectrum Health West Michigan, BHSH Spectrum Health Lakeland and Priority Health divisions. Each board will retain local governance oversight over key areas unique to the communities they serve.
