Beaumont-Spectrum Merger Slowed by Federal Review Process

Beaumont Hospital Trenton

Beaumont Health and Spectrum Health were on track to close the deal on a merger this fall that would make them the state’s largest employer.

Until they weren’t.

The merger won’t close this fall after all, officials from the two systems said in a joint statement, because regulators are taking longer than expected to review the plan.

The statement pointed out officials from the two systems are “cooperating with federal and state regulators” reviewing the deal which, when complete, will create a 22-hospital, $12 billion system.

“The Federal Trade Commission (FTC) is experiencing a surge in filings across all industries and will take longer than originally anticipated to review the BHSH filing,” the two health systems said in a Sept. 24 joint statement.

The new expected closing date has not been announced.

According to the statement, the two systems are “currently responding to a request for additional information” from the FTC, which the organizations understand has “become increasingly common,” the organizations said in the statement.

Spectrum, based in Grand Rapids, and Southfield-based Beaumont announced their plans earlier this month and are now in the integration planning stages.

“Pre-integration planning is now underway, which is permissible under regulatory guidelines, and will not be implemented until closing,” the groups said in their statement. “The two organizations are beginning to identify representatives to start collaborating on ways to successfully launch the new health system.”

The new organization will operate 22 hospitals and 305 outpatient locations, with more than 64,000 team members, including more than 7,500 affiliated, independent and employed physicians, more than 3,000 affiliated, independent and employed Advanced Practice Providers, and more than 15,000 nurses. The new system will operate dual headquarters in Grand Rapids and Southfield, and the President & CEO and senior executive leadership team will spend time on both sides of the state.

Spectrum President and CEO Tina Freese Decker would serve as the top executive for the new company. The first Board Chair will be Julie Fream, the Board Chair of Beaumont Health. John Fox, President & CEO of Beaumont Health, will help ensure a successful transition to the new health system. Following this transition, he plans to leave the organization. A thorough process will be developed to identify and select the BHSH Beaumont Health president.