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Allegiance Health and Henry Ford Health System Announce Intent to Affiliate

November 10, 2015

Jackson, Michigan—Allegiance Health, based in Jackson, MI, and Henry Ford Health System have signed a letter of intent for Allegiance Health to join Henry Ford Health System. Through this new relationship, both institutions would expand in scope and scale, making them better positioned to serve patients and their communities in a rapidly evolving health care environment. Allegiance Health and Henry Ford will be seeking to obtain all necessary regulatory approvals as promptly as possible and expect to finalize an agreement in first quarter 2016.

“Henry Ford and Allegiance Health share a similar legacy of long-term commitment to our respective communities,” said Nancy Schlichting, CEO of Henry Ford Health System, one of the nation’s leading integrated health systems. “As we continue to celebrate our 100th anniversary, we’re excited this new relationship will be part of the next century of care to Michiganders. Our values and our shared commitment to the diverse communities we serve are unwavering, and will guide this partnership for years to come.”

“By joining one of Michigan’s premier health systems, Allegiance will be building on our ongoing commitment to providing safe, high quality care and improving community health,” said Allegiance Health President and CEO Georgia Fojtasek. “Henry Ford shares our values and community focus. Our people, our patients and the communities we serve will remain at the center of everything we do. Together, we will build on our dedication to sustainable health improvement for all.”

“Joining with Allegiance Health is an important strategic step for Henry Ford as we broaden our expertise and reach beyond southeast Michigan,” said Wright Lassiter, III, President of Henry Ford Health System. “We appreciate how important Allegiance is to the Jackson community, and how dedicated its staff and physicians are to the health of their neighbors. We look forward to working with them to expand and enhance the services they provide to Jackson County and the entire south central region.”

According to Fojtasek, Allegiance Health joining Henry Ford will create enhanced care models and greater access to new state-of-the-art technologies, and enable physicians and other clinicians from both systems to work together to develop innovative approaches to patient care. It will also enable Allegiance Health to expand its services and build clinical capacity, as well as improve facilities and technology. Henry Ford will support Allegiance staff in implementing the Epic information system, which would provide Allegiance Health with a new electronic health record platform designed to give physicians, nurses and clinical staff easy access to the most up-to-date patient information. The Epic system also serves our patients by providing them access to their records throughout their lifetime.

“While we anticipate many positive changes as a result of the proposed affiliation between Allegiance Health and Henry Ford, some things – like our vision for health care in this community – remain the same,” said Ray King, MD, Allegiance Health Senior Vice President, Medical Affairs and Chief Medical Officer. “After carefully considering multiple alternatives, we recognize this proposed affiliation with Henry Ford Health System is the best path forward and the best fit for Allegiance Health and for our community.”

Under the proposed new structure, Allegiance Health leaders and local community leaders will continue to represent local interests on the board of trustees and governance committees, and influence the future of Allegiance Health, together with leaders from Henry Ford.

Throughout the United States, health systems are seeking affiliations and alignment with other health systems and physician groups in order to innovate to improve care, enhance the patient experience and reduce the cost of care while advancing community health. With the proposed affiliation, Allegiance Health will have enhanced capabilities and capacity for its population and community health initiatives through Jackson Health Network, our community electronic medical record, and the Health Improvement Organization.

Reflective of the shared visions, Henry Ford Health System and Allegiance are the only recipients in Michigan of the prestigious Foster G. McGaw award. Given annually by the American Hospital Association and Baxter International to one health system in the country, this award is the highest honor for community commitment given to the health care industry.

About Allegiance Health

Allegiance Health is a 480-bed community-owned health system in Jackson, Michigan. Allegiance complements traditional acute care services with mission-based services to support the care continuum for all members of the community. Through its Health Improvement Organization (HIO), Allegiance is also a national leader in forming community partnerships that innovatively address wellness and prevention needs in the community. Visit AllegianceHealth.org to learn more.

About Henry Ford Health System

Henry Ford Health System is a five-hospital system headquartered in Detroit, Michigan. It is one of the nation’s leading comprehensive, integrated health systems, recognized for clinical excellence and innovation. Henry Ford Health System provides both health insurance and health care delivery, including acute, specialty, primary and preventive care services backed by excellence in research and education. The system is a 2011 Malcolm Baldrige National Quality Award recipient. Visit henryford.com to learn more.