Beacon Health System to expand with Ascension acquisition in Michigan
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Beacon Health System in South Bend has signed a definitive agreement to acquire the Ascension health care system in southwest Michigan. Following regulatory approval, Beacon will own Ascension’s network of four hospitals, 35 outpatient clinics and an ambulatory surgery center.
The hospitals include the 422-bed acute care Ascension Borgess in Kalamazoo, Ascension Borgess Allegan, Ascension Borgess-Lee in Dowagiac, and Ascension Borgess-Pipp in Plainwell. The system has more than 2,700 employees, including 261 providers.
“Beacon Health System’s primary focus is to deliver outstanding care to our communities,” Beacon Health System CEO Kreg Gruber said. “Expanding our reach deeper into southwest Michigan…extends our service area and provides growth opportunities to further strengthen the health system for communities served by Ascension.”
Conversations regarding the partnership took off last year after Beacon was invited to submit a letter of interest along with other parties. After doing its due diligence, Gruber said the opportunity fit Beacon’s mission to continue to grow thoughtfully and make a difference.
“We’ve had a track record of success doing this with the communities we’ve gone into,” Gruber said in a Zoom call with reporters on Thursday. “It’s important to bring…this commitment to local governance, local leadership, local delivery of health care, investment in technology, investment in people and enhancing what’s available in the community.”
Gruber talks about why Ascension is a good fit for Beacon Health System.
With this deal, Beacon said there should be little to no disruption in care for patients at Ascension following the merger. Once the deal is approved, Beacon would implement an advanced online scheduling system. Over time, Gruber said there would also be better access to services and specialties.
“As a regional provider, Beacon Health System is positioned to serve patients through an integrated care delivery system to ensure that southwest Michigan has access to sustainable, quality health care long into the future,” Ascension Michigan Chief Operating Officer Scott Cihak said in a news release. “After an in-depth review, we found that our organizations are well-aligned culturally, which will streamline the integration process. Our communities are in good hands.”
With medical providers vying for the limited number of physicians, Ascension’s partnership with Western Michigan University School of Medicine for residency rotations was one of the things Gruber said caught Beacon’s attention because it creates a sustainable talent pipeline.
Beacon currently has a family practice residency and fellowships in sports medicine and obstetrics and gynecology. The northern Indiana system also has a partnership with Ivy Tech Community College for nursing.
“Recruiting and retaining physicians for communities is not that easy,” Gruber said. “We’d like to think once they get exposed to Beacon and the Ascension facilities, run and operated by Beacon, that they’ll choose ultimately to stay with us.”
Beacon previously acquired Bremen Hospital and Three Rivers Hospital in Michigan. Gruber said the Ascension hospitals would be renamed under the Beacon moniker.
The transaction is expected to close this summer subject to standard regulatory approvals in Indiana and Michigan. The purchase price was not disclosed.