After nearly six months of negotiations and regulatory reviews, officials for Detroit-based Henry Ford Health System and Allegiance Health in Jackson, Mich., have finalized the merger agreement that will bring the 475-bed Jackson-based hospital into the system as Henry Ford Allegiance Health.
"We are so pleased to welcome Allegiance Health into the Henry Ford family," Nancy Schlichting, Henry Ford's CEO, said in a statement. "Our health systems share the same values and commitment to the diverse communities we serve. We look forward to combining nearly 200 years of care and service to benefit the residents of Jackson and the surrounding communities."
Adding Allegiance will create a six-hospital Henry Ford system with $5.2 billion revenue, the largest by revenue in Southeast Michigan.
Allegiance President Georgia Fojtasek said in a statement that she and hospital staff "are eager to work alongside our new partner to expand and enhance the health care services across our region, including offering new insurance products to the region through Henry Ford's health insurance subsidiary Health Alliance Plan."
While no cash was involved in the transaction, Henry Ford has agreed to invest $300 million over five years to add new facilities, information technologies and other programs and services, said Bob Riney, Henry Ford's COO. Some of the funds will be raised through the Henry Ford Allegiance Health foundation, he said.
Wright Lassiter III, Henry Ford's president, said Allegiance will help Henry Ford reach out to patients and businesses far outside of metropolitan Detroit.
"Allegiance has been — and will continue to be — a beacon for the Jackson community, both as a health care leader and economic engine," Lassiter said in a statement.
Officials said physicians and community members will continue to represent local interests on the Allegiance board and governance committees.
"While we anticipate many positive changes as a result of becoming Henry Ford Allegiance Health, some things — like our vision for healthcare in this community — remain the same," Ray King, M.D., Allegiance's senior vice president of medical affairs and chief medical officer, said in a statement.