Henry Ford, Beaumont Announce Merger Integration Task Force

December 19, 2012

DETROIT - Henry Ford Health System and Beaumont Health System announced today the formation of the Merger Integration Task Force and identified several Shared Vision Teams that will lead the due diligence and integration process for the merger of the two systems.

Henry Ford CEO Nancy Schlichting and Beaumont CEO Gene Michalski will co-chair the Merger Integration Task Force, the committee charged with preparing for a smooth and efficient transition to the new organization once the transaction is complete.

This decision follows the October 31 announcement that the two organizations plan to combine all of their assets, liabilities and operations into a new $6.4 billion organization that will serve as a national model for health care. The new not-for-profit system will be one of the most comprehensive health systems in Michigan and will integrate their combined 10 hospitals and 200 patient care sites.

“The Merger Integration Task Force will launch our due diligence process, during which we will address how to smoothly and efficiently bring our two organizations together,” says Schlichting.

“It is vital to include knowledgeable representation from both organizations and from a variety of areas of experience as we move forward in this process,” says Michalski. “The Merger Integration Task Force and our Shared Vision Teams include physicians, nurses, and other caregivers and experts in their individual fields.”

In addition to Michalski and Schlichting, Henry Ford and Beaumont’s equal membership on the Merger Integration Task Force includes:

  • Tom Brisse, executive vice president, Operations, Beaumont Health System
  • Betty Chu, M.D., elected president, Beaumont, Troy medical staff, and physician, Obstetrics & Gynecology, Beaumont Health System
  • James Connelly , executive vice president, Finance and chief financial officer, Henry Ford Health System
  • Ananias Diokno, M.D., executive vice president & chief medical officer, Beaumont Health System
  • Joanna Pease, D.O., vice president, Medical Affairs, and chief medical officer, Henry Ford Macomb Hospital
  • John Popovich Jr., M.D., chief executive officer, Henry Ford Hospital, and chief medical officer, Henry Ford Health System
  • Robert Riney, president and chief operating officer, Henry Ford Health System
  • Bill Schramm, senior vice president, Strategic Business Development, Henry Ford Health System
  • Subra Sripada, executive vice president, chief administrative & information officer, Beaumont Health System
  • Nick Vitale, executive vice president & chief financial officer, Beaumont Health System

The two organizations also announced the formation of Shared Vision Teams that will specialize in particular areas of integration and report to the Merger Integration Task Force. Those teams include:

  • Academics/Research
  • Clinical Integration
  • Community/External Stakeholders
  • Communications/Branding
  • Facilities
  • Finance/Risk Management
  • Foundation
  • Governance & Organization Design
  • Human Resources
  • Information Technology
  • Insurance
  • Legal & Regulatory
  • Nursing
  • Organizational Culture
  • Operations
  • Physician Enterprise
  • Post-Acute Health
  • Safety & Quality
  • Supply Chain

The membership of the Shared Vision Teams will include physicians, nurses and other caregivers and professionals with a wide range of expertise.

The two organizations are currently working towards a definitive agreement, which is expected in the first half of 2013. After the completion of the regulatory approval process, the transaction is anticipated to close later in 2013.

For more information, visit Future Care for Michigan.

About Henry Ford Health System

Henry Ford Health System, one of the country's largest and most comprehensive integrated health care systems, is a national leader in clinical care, research and education. The system includes the 1,200-member Henry Ford Medical Group, seven hospitals, Health Alliance Plan (a health insurance and wellness company), Henry Ford Physician Network, a 150-site ambulatory network, a $70 million annual research budget and many other health-related entities throughout southeast Michigan, providing a full continuum of care. In 2011, Henry Ford provided more than $200 million in uncompensated care. The health system also is a major economic driver in Michigan and employs more than 24,000 employees. Henry Ford is a 2011 Malcolm Baldrige National Quality Award recipient. The health system is led by CEO Nancy Schlichting. To learn more, visit HenryFord.com

About Beaumont Health System

Beaumont Health System is a three-hospital regional health system with 1,726 licensed beds, more than 14,000 full-time equivalent employees and nearly 3,100 physicians, including 500 employed physicians in the Beaumont Medical Group and more than 2,600 private-practice physicians. In addition to its hospitals in Royal Oak, Troy and Grosse Pointe, Beaumont has numerous community-based medical centers in Oakland, Macomb and Wayne counties, family practice and internal medicine practices, five nursing centers, a research institute, home care services and hospice. Beaumont is the exclusive clinical teaching site for the new Oakland University William Beaumont School of Medicine. Visit Beaumont on the web at www.beaumont.edu.