Beaumont Health System, Botsford Health Care and Oakwood Healthcare have completed their affiliation agreement to combine operations as a new organization called Beaumont Health. Federal and state regulatory officials have reviewed and approved the affiliation and granted tax-exempt status as a new $3.8 billion not-for-profit health care organization.
Beaumont Health was officially launched on Sept. 2.
John Lewis, chairman
Beaumont, Botsford and Oakwood announced their intention to come together and form a new health care organization in March and reached a definitive agreement in June.
John Lewis, chairman of the new Beaumont Health Board, says, “This is a great day for the people of southeastern Michigan. Beaumont Health will continue the traditions of our legacy organizations as a nonprofit, locally governed organization. With our combined strengths of patient satisfaction, medical excellence and community focus, we look forward to serving the health needs of patients and families for years to come, with quality and compassion guiding all that we do.”
Lewis is chairing the new 14-member Beaumont Health Board that’s a blend of representatives from the three organizations. Board members are:
- Christopher Blake of Grosse Pointe Farms, president and owner of The Blake Company, Mutschler Kitchens and Blake Properties LLC
- Gerson Cooper of Bloomfield Hills, Botsford Health Care Trustees Board chair, Beaumont Health board vice chair, and retired president and CEO of Botsford Health Care
- Julie Fream of Birmingham, Beaumont Health Board secretary, president and CEO, Original Equipment Suppliers Association
- Malcolm Henoch, M.D., of Northville, Oakwood Healthcare senior vice president and chief medical officer
- Stephen Howard of Franklin, Beaumont Health System Board chair, Beaumont Health board vice chair, and founder, president and CEO of Spearhead Group
- John Lewis of Grosse Pointe Farms, Oakwood Healthcare Board chair, Beaumont Health Board chair, and managing director, Donnelly Penman & Partners
- Harris Mainster, D.O., of Bloomfield Hills, Botsford general surgeon
- Gene Michalski, of Oakland, president and CEO, Beaumont Health and Beaumont Health System
- John Nemes, C.P.A., of Novi, Beaumont Health Board treasurer, president of Sallan, Nemes, Lyman & Strakovits PC
- Timothy O’Brien of Northville, co-founder and policy principal, Sustainable Water Works Inc., and principal, TOB Consulting
- Martha Quay of Birmingham, owner, Veranda Inc.
- Thomas Saeli of Birmingham, chief executive officer, JRB Enterprises/Duro-Last Roofing
- S. Evan Weiner of Franklin, executive vice president and chief operating officer, Edward C. Levy Co.
- David Wood, M.D., of Royal Oak, Beaumont Health System executive vice president and chief medical officer
president and CEO
“The dedication and hard work of our affiliation team, and the leadership of our boards and my CEO colleagues Brian Connolly and Paul LaCasse, allowed for the completion of the affiliation process in a little more than five months,” says Michalski. “This demonstrates our strong, mutual commitment to a common vision for Beaumont Health: medical care of the highest quality and highest value, with a seamless experience, for every patient, every time.”
With the close of the transaction creating Beaumont Health, integration teams involving leaders from the three organizations will step up their efforts, shifting their focus from formation of a new organization to transformation that builds on the individual strengths of the three legacy organizations.
“The integration planning to create a new health care organization from three separate organizations has gone extremely smoothly, which is a credit to the leaders and staff of Beaumont, Botsford and Oakwood,” states Brian M. Connolly, president and CEO of Oakwood Healthcare Inc. “This demonstrates our shared dedication to improving quality and delivery of care, making exceptional health care more accessible to our communities. Beaumont Health has a unique opportunity to become a local and national leader, and we are well on our way.”
A Clinical Leadership Council, and seven Clinical Transformation Teams made up of physicians, nurses and other patient care professionals, is leading efforts to identify and share best care practices.
“Through the newly formed Clinical Leadership Council, we will enhance and advance patient-centered care through our existing relationships with more than 5,000 physicians and by partnering with other physicians who want to practice at our new organization,” says Paul E. LaCasse, D.O., MPH, president and CEO of Botsford Health Care, who chairs Beaumont Health’s CLC. “Together, we will succeed by placing the patient at the center of all we do. We will work to make Beaumont Health the best and most progressive health care system in Michigan.”
Between now and year end, the next steps for Beaumont Health are to:
- Appoint the new Beaumont Health executive team
- Determine a location for Beaumont Health executive offices; temporary offices will be located at the PNC building in Troy
- Determine a plan for integrating the eight individual hospital names with the new Beaumont Health name
- Develop a new corporate organizational structure to align all the individual entities that make up Beaumont Health
About Beaumont Health
Beaumont Health is a not-for-profit organization formed by Beaumont Health System, Botsford Health Care and Oakwood Healthcare to provide high quality, efficient, accessible services in a caring environment for southeastern Michigan residents and beyond. It consists of eight hospitals with 3,337 beds, 153 outpatient sites, 5,000 physicians, more than 33,000 employees and about 3,500 volunteers. In 2013, the combined organizations had 168,047 inpatient admissions, 15,997 births and 492,677 emergency visits. For more information, visit beaumonthealth.org.
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