LANSING, Mich. (Michigan News Source) – In the latest consolidation of a hospital system in Michigan, Sparrow Health System has officially united with University of Michigan Health completing its merger officials announced Monday.
In December, it was announced that the two health systems planned to merge, and according to officials adding Sparrow Health to UM Healthy makes the combined groups a $7 billion operation with more than 200 sites of care across Michigan.
“This is an incredibly proud moment for Sparrow as joining University of Michigan Health enables us to accelerate our expansion of services, build greater breadth and depth of clinical expertise, and seamlessly integrate leading-edge technology and other updates into our facilities,” James F. Dover, Sparrow Health president and CEO, said in a statement. “We look forward to realizing our shared goal of delivering nationally renowned clinical excellence in an accessible way for patients.”
According to Dover, UM and Sparrow have a roughly 60% share of the mid-Michigan health care market. He described the merger as a “member substitution agreement,” and UM officials said they will spend $800 million on Sparrow over the next eight years through hospital operations and investments.
Through the merger gastroenterology, orthopedic, cardiovascular and ear, nose, and throat specialties will also be expanded within the Sparrow footprint according to Sparrow Health System board chair John Pirich.
“For University of Michigan Health, this milestone advances our organization’s long-term vision of a statewide system of highly coordinated care. The completion of this transaction represents a special moment and, as one team, we are well positioned to unlock new opportunities and share best practices while providing our patients with the highest level of care,” CEO of Michigan Medicine Marschall Runge said in a statement.
Michigan Medicine also will be taking a greater stake in the Physicians Health Plan, a health insurance that provides individual, group, and Medicare plans in southeast Michigan, Saginaw, mid-Michigan, and southwest Michigan according to the Detroit News. UM now owns 90% of PHP, while the remainder is owned by Covenant HealthCare.
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Before the merger, Sparrow Health was one of the largest health systems in Michigan, with more than 120 sites of care, 10,000 caregiver employees, and 600 employed primary care providers. Seven hospitals are in the Lansing area, including its first in downtown Lansing, as well as community hospitals in areas such as Charlotte, Ionia, and St. Johns.
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