Detroit-area health systems are competing for dwindling numbers of inpatients, which is pushing them to partner on value-based care and cut costs wherever possible. Inpatient admissions at Beaumont were down 2.1% in the three months ended March 31, and they were flat overall in 2013. Oakwood and Botsford posted lower volumes last year. “Basically they're saying: We need to do some right-sizing and get bigger to sort of maintain the market share, or at least the volume, we see declining,” Baumgarten said.
“This milestone demonstrates our mutual commitment to working together to improve quality, efficiency and value for our patients,” said Beaumont President and CEO Gene Michalski in a news release. Michalski will lead the new system as CEO. “We'll be able to share and build on our individual successes and will stand stronger together during a time of major transformation in the health industry.”
The transaction now requires state and federal approval, which is expected by this fall.
Michalski, Oakwood CEO Brian Connolly and Botsford CEO Dr. Paul LaCasse will lead a CEO council to guide the system through the transition. Hospital leaders also previously announced a clinical leadership group will oversee the integration among physicians and other providers.
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