University of Michigan Health, Charlotte, Ionia, St. Johns, Carson City and Lansing, along with 500 primary care providers and specialists.
The deal was approved Thursday by the University of Michigan Board of Regents. Sparrow Health System’s board signed off on the deal in late November.
Pending regulatory approvals, the acquisition is expected to close in the first half of 2023.
More:The newly merged Beaumont-Spectrum health system is rebranding as Corewell Health
More:The Beaumont-Spectrum merger takes another step forward with a formal integration agreement
UM Health spends $800 million
“This agreement strengthens UM Health’s ability to provide quality care in communities beyond southeast Michigan, expanding our mission as a statewide referral site for the most critically ill patients,” said Paul Brown, Chairman of the Board of Regents.
As part of the deal, Ann Arbor-based UM Health will spend $800 million on Sparrow’s hospital campus over the next eight years, funding facility projects, operations and other “strategic investments.”
Among them are renovations to the neonatal intensive care unit at EW Sparrow Hospital in Lansing and improvements to cardiology, oncology, orthopedics and neurology services, Sparrow Health System executive vice president and COO Joseph Ruth said in a statement.
“This infusion of investment into sparrow services will provide job growth and career development opportunities that would not otherwise be available to care providers,” Ruth said.
UM Health’s expansion
The deal includes Sparrow’s Physicians Health Plan, an insurance plan with more than 70,000 members and 300 employers statewide, as well as a Medicare Advantage plan.
It was unclear Thursday whether Sparrow will keep his name or change his name as part of the deal.
“In the coming year, we expect to introduce strategic updates to the Sparrow brand to appropriately reflect the relationship between our organizations,” said UM Health spokeswoman Mary Masson.
The addition of Sparrow brings UM Health to a $7 billion organization with more than 200 care sites across the state, including the flagship university hospital, CS Mott Children’s Hospital, Von Voigtlander Women’s Hospital, Frankel Cardiovascular Center, Kellogg Eye Center, UM will be converted. Health West and Rogel Cancer Center.
“For University of Michigan Health, this is an important step toward our long-term vision of a highly coordinated system of care; a vision that Sparrow embraces and is excited to build toward,” said Dr. Marschall S. Runge, CEO of Michigan Medicine, UM Medicine. Dean of the School and Executive Vice President for Medical Affairs at the University of Michigan.
“Upon closing, UM Health will create a clinical care network that builds on the strengths of a world-class UM academic medical center and highly successful community-based health system. Together, the two organizations will focus on bringing increased healthcare innovation to mid-Michigan and beyond.
It’s the latest in a series of recent acquisitions and mergers among Michigan hospitals over the past year.
Former Beaumont Health and Spectrum Health systems in January combined in a megamerger to create the new Corewell Health, the state’s largest health system with 22 hospitals and more than 60,000 employees.
And the former North Ottawa Community Health System, located in Grand Haven received by Trinity Health in October. It became Livonia-based Trinity’s ninth Michigan hospital.
Contact Kristen Shamus at firstname.lastname@example.org. Follow him on Twitter @kristenshamus. Subscribe to Free Press.
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