CHICAGO – January 13, 2020 – Summa Health, based in Akron, Ohio, signed a definitive agreement with Southfield, Michigan-based Beaumont Health. The two organizations executed a Letter of Intent in July and then began an extensive review of both organizations’ clinical, regulatory, and financial systems. Signing the definitive agreement is the next step in the process of bringing Summa Health into the Beaumont Health family.
Kaufman Hall has served as the exclusive strategic and financial advisor to Summa Health regarding this partnership transaction.
“Conversations between leaders and staff at both organizations have been going well. We very much look forward to working even more closely together now that we have a definitive agreement in place,” Beaumont CEO John Fox said. “As we grow our presence in Summa’s market area, our significant investments in our Michigan employees and operations will continue and be further enabled.”
The newly combined organization will utilize the financial strength of both organizations to fund the health system’s overall plan, which includes significant capital and operating projects, to drive ongoing growth in Northeast Ohio and Michigan.
“We are excited to deliver on our shared mission to provide compassionate, quality care and enhance the health of our communities,” said Summa Health president and CEO Dr. Cliff Deveny. “Our Board is confident that this partnership will further our abilities to not only provide excellent clinical services throughout Northeast Ohio, but also position our leadership, physicians and employees for continued success and growth.”
Summa Health will retain a local Board to support the oversight of clinical operations in Ohio. SummaCare, Summa’s health insurance operation, will remain an integral part of Summa Health and the organizations will work together to identify opportunities to drive future expansion.
The organizations are in the process of submitting the agreement to state and federal regulatory agencies for final approval. Experts hope the transaction will close by the end of the first quarter of 2020. Together, the combined organization will tout $6.1 billion in total revenue, 45,000 employees and more than 6,000 affiliated physicians.
Summa Health is one of the largest integrated healthcare delivery systems in Ohio with total annual revenues of $1.4 billion. Summa Health consists of a network of hospitals, a health plan, a physician-hospital organization, a multi-specialty physician organization and approximately 7,000 employees. Beaumont is Michigan’s largest health care system with total annual net patient revenue of $4.7 billion. Beaumont consists of eight hospitals with 3,429 beds, 145 outpatient sites, nearly 5,000 affiliated physicians, 38,000 employees and 3,500 volunteers.
To learn more about how Kaufman Hall is assisting healthcare organizations with mergers, acquisitions, and other strategic partnerships, contact Andre Maksimow at (224) 724-3159.
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Amendola Communications (for Kaufman Hall)