Is Easton Hospital Being Sold Again

Michigan's largest health care system is nearly to get bigger.

Beaumont Health appear Tuesday that it has signed a letter of intent to acquire  Summa Health, an Akron, Ohio-based nonprofit hospital system that employs 7,000 people at four hospitals and customs wellness centers in northeastern Ohio.

Under the deal, Summa Health would become a subsidiary of Beaumont and would maintain local leadership and a local board.

Cincinnati-based Bon Secours Mercy Health, which has a 30% minority stake in Summa Wellness would exist "redeemed equally role of this procedure from the combined entity and the v board seats on the Summa Health board will be replaced by Beaumont wellness appointees," said Summa Wellness CEO Dr. Cliff Deveny.

Summa Health began looking for a partner in October, putting out a call to other health systems to form a partnership to help provide financial stability and help it grow, Deveny said.

"We had to find an organization that valued what Summa Health System is and our mission and how we could actually not but sustain the organisation but grow the organization,"' he said. "... Beaumont is very similar in so many ways, not only when information technology comes to the Deoxyribonucleic acid and how people think, but how we are focused on the value of care and to make sure nosotros are appropriately providing the right care at the correct fourth dimension with the right toll."

For Beaumont, it'south the showtime out-of-state foray in its ongoing expansion.

The health organisation merged in 2014 with Oakwood Healthcare and Botsford Hospital, and has grown to include 8 hospitals with three,429 beds. It has almost 5,000 affiliated physicians and 38,000 employees.

Beaumont also is building a $xl million mental health hospital in Dearborn and has plans to open up thirty urgent care centers in southeastern Michigan, along with several outpatient centers.

"From Beamont's perspective, we are very excited well-nigh this opportunity," CEO John Fox said of the deal with Summa Health. He said he hopes to complete the deal by the end of 2019.

"Nosotros remember we tin become it done this yr, merely nosotros are hesitant to requite whatever dates," Play tricks said. "Any transaction similar this, of this size, has got to become through some regulatory reviews and approvals. Nosotros're not seeing any trouble with that, but until it'southward over, information technology's not over. That'due south where the timing can get a little complicated."

The partnership with Summa Health might not be the only out-of-state expansion for Beaumont, Fox said.

"Nosotros await at everything going on within 300 miles of southeast Michigan," he said. "So we expect at all of the operators in northern Ohio, northern Indiana, everybody in Michigan, Illinois and beyond, because the reality of it is that in American wellness care today, regional health systems are emerging that are crossing state lines and accumulation markets.

"We are not looking at annihilation in California or Florida, and don't plan on doing that. Only it'southward the pressure level that we're all under in health intendance to get size of scale so we can lower our unit of measurement costs, become more than efficient, more affordable for the consumer is a real imperative that we take seriously.

"And then we're constantly looking, just we're non merely trying to get bigger. We'll just wait at something that volition make usa also better. And we believe that the partnership with Summa Health met that criteria."

Nevertheless, Fox said, he is not concerned that Beaumont's growth is happening besides fast or that quality of care will suffer because of the rapid expansion.

"We watch that similar a militarist," he said, noting that when Beaumont added the Oakwood and Botsford systems to its umbrella, it was an opportunity to learn.

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"Nosotros have very consequent measurement systems and processes in place, and so I remember financially we're healthier and I think we are producing a better value for the patient with our quality metrics improving.

"I call up Summa Health has been doing the same thing, and again, we'll be working together to learn from each other going forward. There'due south a local direction team here that will continue to manage Summa Health and they do information technology well. And that's our arroyo going forward."

Summa Health also has an insurance provider, SummaCare, which, Deveny said, has been in business in Ohio for 27 years and offers small group, big group and private plans. Its biggest offering is a Medicare Reward program, he said. It also provides third-party administration for large organizations, such as the Cleveland Clinic, university wellness systems and manufacturing companies.

"SummaCare is function of the local operations, but really Beaumont will have the opportunity to utilize their capabilities and their capacities wherever it makes sense," Deveny said. "Then everything from potentially doing employee management to, you know, there could be an opportunity to develop products or even some directly-to-employer opportunities. Just that is really going to all be office of that due diligence so what will the marketplace bear? What will the market want?"

Flim-flam said Beaumont would have to get a state license and bound some regulatory hurdles to bring SummaCare to Michigan, but "certainly their competencies and capabilities translate across state lines."

Summa Wellness lost its accreditation in 2017 to run an emergency medicine physician training program. The Akron Buoy Journal reported that there were delays in treating stroke patients, and that get-go-year residents and rotating residents were seeing patients without supervision. Some patients were sent home without being examined past an attention medico. There likewise were reports of intimidation of resident doctors. The infirmary organization besides has a history of fiscal bug.

Deveny said Summa Wellness worked to address all those issues before information technology went in search of a business partner.

"Before we went out to market, so to speak, nosotros addressed all the issues operationally from a operation standpoint," he said. "We received full accreditation for the institution. Nosotros accept expanded residency programs in obstetrics, surgery, internal medicine and our cardiac fellowship this twelvemonth.

"Nosotros have an agile application in to get the emergency medicine residency hither. It would not be the one-time residency, only a new, de novo program. So we had a site visit in June. We look to hear some time in September as to whether we will exist granted the seats for the emergency medicine program.

"I think the Beaumont relationship brings us a larger platform of different residency programs that we don't accept; and nosotros also do a behavioral wellness psychiatry residency, which Beaumont doesn't do, and so nosotros take the opportunity to share trainees, look for opportunities for expansion together."

Play a joke on said the Summa Wellness proper noun volition continue in Ohio.

"Summa Health, the brand that's here locally means something locally. Using the Beaumont brand in Michigan makes more sense because a lot of people know information technology. So, from our standpoint, and I call up Summa Wellness would hold, we anticipate Summa Health continuing as Summa Health in this market.

"We'll have some common denominator where it'll be part of something bigger, merely nosotros haven't bluntly figured that out yet. The way we put Beaumont on all the buildings in southeastern Michigan, that's not anticipated here" in Ohio.

Contact Kristen Hashemite kingdom of jordan Shamus: 313-222-5997 or kshamus@freepress.com. Follow her on Twitter @kristenshamus.

Editor'southward notation: This story has been updated.

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Source: https://www.freep.com/story/news/local/michigan/2019/07/09/beaumont-health-partnership-summa-health-system/1681208001/

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