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Beaumont Health System Considers Strategic Partnerships

The Royal Oak-based organization's executive board was set to discuss possible collaborative relationships with other institutions during its meeting Tuesday.

A Beaumont Health System executive said Tuesday that the organization is considering strategic partnerships with other institutions, but refuted a rumor the hospital is for sale.

Colette Stimmell, Beaumont's director of corporate communications, said Tuesday afternoon that the Royal Oak-based health system's executive board is meeting today and one of the agenda items is strategic partnerships.

"Our board and executive team have been involved in strategic planning discussions for some time now. As part of that, we've been talking with many organizations locally and across the country and these are confidential discussions so I can't discuss the names of any of the organizations we've been talking with," she said. "As soon as we make a decision, we will make an announcement. We're not quite there yet but I expect it will be soon."

Stimmell couldn't discuss entails of what a potential partnership would look like but said the health system has considered "a variety of options."

One thing is clear: "We are not up for sale," she said. "Acquisition is not an option."

Beaumont's name won't be changing, either, she said.

Crain's Detroit Business reported that an unnamed tipster told the publication that Detroit-based Henry Ford Health System's board voted Friday to acquire Beaumont. However, the Crain's report also noted Henry Ford spokesman Dwight Angell said that while the system's board of trustees did meet to discuss potential partnerships, he could not confirm any details.

Stimmell said a decision and an announcement on strategic partnerships could come any time.

Whatever happens, there could be implications in Grosse Pointe, the home of both Beaumont Hospital Grosse Pointe and Henry Ford Medical Center Cottage.

"We recognize people are anxious to know. Our employees are anxious to know. They've known that the discussions are going on," she said. "We want to get the information out as soon as we can."

Regardless of what decision is made, patients won't be affected, she said.

"We will continue to take care of patients as we always have," she said.

As for why Beaumont has been considering strategic partnerships, Stimmell said it has to do with health care reform.

"Health care organizations are all talking with each other and pursuing various types of relationships," she said. "It's all related to changes in the health care industry, health care reform, declining reimbursement.

"Here in Michigan, and across the country, organizations are getting together and forming various types of relationships. We're trying to be proactive to make sure that we can remain a leading health care system," Stimmel said. "In order to do that you have to look ahead at what changes are occurring and be prepared to respond to those. That's why our board and executive team have been involved in these discussions."

GP For Life October 31, 2012 at 10:06 PM
Katie, Beaumont is pressing the panic button. I know in 2011 they were hemorrhaging cash and I am not sure they turned it around. No matter the spin, it's not a merger. They put themselves on stage and Hank Ford is throwing the dollar bills!
Katie November 01, 2012 at 02:26 PM
GP for Life. Agreed. Henry Ford doesn't need Beaumont. I deleted my earlier post, and while I don't normally feel the need to explain myself (a Ford once said, 'never complain, never explain') I was complaining, which is generally annoying. A lot of us were born at Bon Secours and having the facility in the neighborhood, along with Cottage, was great but when Beaumont purchased Bon Secours they began to try to change the landscape of the community. Instead of working with the community and being on the up and up with what they wanted to do, they clandestinely plowed forward with their agenda on Notre Dame, which I personally find not only arrogant but a dinosaur model in which to conduct business/build community relationships. Some of this, of course, was Beaumont backpedaling to keep finances on track after the decision to acquire Bon Secours in a hurry - without enough due diligence – in an effort to keep St. John’s and Henry Ford from gaining market share. I digress. Now with Henry Ford on board, hoping that our community can retain health care services, but grow in a responsible way with a partner that is good for the community as a whole, the local residents and the Village retail business district.

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