Ascension signed a definitive agreement to sell three northern Michigan hospitals and an ambulatory surgery center to MyMichigan Health as the nonprofit health system continues to downsize its Michigan footprint.
Under the agreement announced Tuesday, MyMichigan Health — a nine-hospital affiliate of University of Michigan Health — would take over 268-bed Ascension St. Mary’s in Saginaw, 47-bed Ascension St. Joseph in Tawas City, 25-bed Ascension St. Mary’s in Standish and Ascension St. Mary’s Towne Center, an ambulatory surgery center and emergency department in Saginaw. The proposed transaction is expected to close this summer, pending standard regulatory approvals.
Related: Henry Ford Health, Ascension Michigan to combine in $10.5 billion system
“This transition will ensure that Saginaw, Tawas City and Standish have sustainable, quality healthcare access long into the future,” Jordan Jeon, interim regional president and CEO of Ascension Michigan’s northern region, said in a news release.
The proposal marks St. Louis-based Ascension’s latest plans to reduce its Michigan hospital network. In October, Detroit-based Henry Ford Health and Ascension's Michigan division announced a joint venture, in which Henry Ford would take over eight Ascension hospitals.
If both the MyMichigan and Henry Ford deals go through, Ascension would be left with four hospitals in the state. Ascension has also downsized in Wisconsin and other Midwest markets.
The proposed combination is one of more than a dozen Midwest hospital transactions that have been proposed or completed in the past year.
Ascension reported an operating loss of $3 billion on operating revenue of $28.35 billion in 2023, compared with an operating loss of $879.2 million on operating revenue of $27.98 billion in 2022.
Midland, Michigan-based MyMichigan Health reported operating income of $13 million on operating revenue of $3.46 billion in 2023, compared with operating income of $21 million on operating revenue of $3.08 billion in 2022.
