A joint venture between Henry Ford Health and Ascension announced last year will close at the end of the month and launch October 1, the organizations announced Wednesday.
The arrangement brings eight southeast Michigan hospitals and an addiction treatment facility from the Ascension Michigan and Ascension Genesys Health System under the Henry Ford Health umbrella.
The combined organization will be retaining Henry Ford’s Detroit headquarters, branding, President and CEO Robert Riney and the entirety of the system’s assets, including its Health Alliance Plan.
Together, the joint venture will employ about 50,000 people across 13 hospitals and 550 sites, and annual operating revenues cracking 11 digits.
“Since we announced our proposed joint venture last fall, we’ve been engaged in thoughtful planning across our organizations—all focused on how we plan to come together to build the future of health on behalf of those we serve,” Riney said in a release. “It’s given us a wonderful opportunity to make deeper commitments to the sacred mission and privilege of healthcare – and we can’t wait to make this a reality for the people of Michigan and beyond.”
Henry Ford Health and Ascension have repeatedly characterized their arrangement as a joint venture, rather than a merger or an acquisition, with no cash transaction taking place.
They have also said the resulting fully integrated entity will improve care delivery in the region, via stronger care coordination, population health efforts and other benefits resulting from their greater scale.
Following the close, Ascension will be left with just four operated hospitals in Michigan. It also recently transferred three of its other hospitals in the state to MyMichigan Health.
The Catholic giant has generally been shedding several of its hospitals nationwide, recently disclosing deals with Prime Healthcare in Illinois and UAB Health in Alabama. It logged a major $3 billion operating loss during its 2023 fiscal year ($1.6 billion without a one-time impairment loss) but has been looking much stronger nine months through its fiscal 2024.
Henry Ford Health, meanwhile, is looking to expand with a multi-billion campus development project in the works. The system reported about $7.8 billion in revenue during 2023 and an $80.5 million operating income.
The new joint venture was previously announced to have board governance representatives from both organizations. Ascension Michigan CEO and Ascension Senior Vice President Carol Schmidt will be on board to support the initial transition and integration phase, according to the announcement.
Other leadership appointments outlined Wednesday, from the current Henry Ford Health, include: Adnan Munkarah, M.D., as president of clinical enterprise and chief physician executive; Denise Brooks-Williams as executive vice president and chief operating officer; Robin Damschroder as president of value-based enterprise and chief financial officer; Steven Bender as executive vice president and chief legal officer (effective Oct. 21); and Dennis Butts as executive vice president and chief strategy and network development officer.
From Ascension Michigan, Patrick Kelly will step in as chief mission integration officer. Doug Apple, M.D., Ascension Michigan’s chief clinical officer, and Tom Klein, its chief operating officer, will also be coming over in roles yet to be announced.