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Deveny said the merger with Beaumont "also gives our insurance companies, Summa Care, a chance to grow in Ohio and beyond." He added that he also hoped that Beaumont would help Summa expand its lines of clinical services to compete with the Cleveland Clinic, which has a hospital in Akron.
Beaumont is expected to invest financially in Summa in the Akron market to expand its services and health insurance. However, the exact amount will be calculated over the next few months during the due diligence phase, officials said.
Fox said it expects Medicare Advantage and commercial products from SummaCare in Ohio to grow faster than in the past. He said there were internal discussions about the potential launch of insurance products in Michigan.
But Fox said that Beaumont's expansion into Ohio did not mean a slowdown in its growth plans in southeastern Michigan.
Over the past year, Beaumont has announced plans to build 30 Emergency Care Centers in partnership with WellStreet Urgent Care, a 150-bed Behavioral Health Care Hospital in Dearborn, with Universal Health Services, King of California. Prussia, Pennsylvania. for-profit company and three new ambulatory centers in Livonia, Lenox Township and Royal Oak.
"For Beaumont, it's an important position for us," Fox said. "We are excited about it.Many people say that something is happening in Ohio at the border.I have lived in Ohio.It's an adjacent market.The next phase of the health system will consist of a more regional expansion. "
Fox explained that Beaumont was interested in Summa because it had a similar mission, vision and values, as well as a strong commitment to the community.
"We have (revised) our strategic plan in 2015 to look at regional expansion and all markets at 300 miles," said Fox. "We knew about Summa, they were on our radar screen."
The leaders refused to speculate on the savings achieved through the merger. "It's too early – we'll know more in the next 90 days – it's a unique partnership because we're farther apart," Deveny said.
After laying off about 300 employees in 2017, Mr. Deveny said he was not expecting any layoffs from employees or managers. Deveny said Summa has added about 91 positions this year.
"We believe that debt restructuring with the new combined organization will save us money," said Fox. "We will look at the supply chain and combine them to reduce unit costs.We are confident," we will save money.
Deveny added that the board seats will be added for Beaumont to the 16-member Summa board. "We will continue to have a fiduciary board with Beaumont representatives, budgets, asset sales, acquisitions will be reserved," he said.
At closing, Deveny said Mercy Health was going to sell its five seats on the board. He said that Mercy's investment in Summa, over five years, had paid off by improving operations and efficiency.
"They (Mercy) have taken a different direction with their merger with the Bon Secours health system (based in Maryland)," he said.
Beaumont Health has annual net sales of $ 4.7 billion, eight hospitals with 3,429 beds, 145 outpatient centers, nearly 5,000 affiliated physicians and 38,000 employees. Beaumont also has 4,800 physicians, or 20%, or 900, employees of the Beaumont Medical Group.
"Since the founding of Beaumont Health, we have invested heavily in our employees, facilities and communities in Michigan, and we will continue to do so.One of our strategic goals is to become a regional leader in healthcare. The planned addition of Summa Health allows us to take another step toward achieving this key strategic priority, "said John Lewis, president of Beaumont Health, in a statement.
By adding 7,000 employees, 1,200 physicians (35% employees) and $ 1.4 billion in revenue to Summa, Beaumont is expected to become a $ 6.1 billion health care company with 45 000 employees, 12 hospitals and 4,729 beds with 6,000 physicians, including 1,320 employees.
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