Henry Ford Health And Ascension To Launch Joint Venture In October

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Dive Brief:

• Henry Ford Health and Ascension will launch their joint venture in Michigan at the start of October, moving eight Ascension and Genesys hospitals and an addiction treatment center under the Henry Ford brand, the companies said on Wednesday.
• Detroit-based Henry Ford will double in size once the joint venture launches, growing its acute care footprint from five to 14 hospitals.
• The no-cash deal, announced nearly a year ago, is expected to create an organization with more than $10.5 billion in annual operating revenue. Henry Ford CEO Bob Riney will serve as the CEO of the new entity.

Dive Insight:

The joint venture continues Henry Ford’s expansion across Michigan — and Ascension’s retreat from the state.

In August, Ascension sold three hospitals and an ambulatory surgical center in Northern Michigan to MyMichigan Health. The Catholic health system has also sought to downsize elsewhere, offloading hospitals in Illinois, Kansas and Alabama.

Ascension’s national downsizing comes amid ongoing operational struggles for the massive nonprofit system. Most recently, Ascension posted an operating loss of $238 million in the fiscal quarter ended March 31.

Ascension was also hit by a cyberattack in May that caused widespread disruptions to services. The health system is facing class-action lawsuits related to its cybersecurity preparedness, which could further ding its finances. 

In contrast, Henry Ford is in the black operationally and is looking to grow its footprint.

The health system launched a project to expand its Grand hospital campus in Detroit earlier this year.

The project includes a $335 million research facility in partnership with Michigan State University Health Sciences, according to a June press release.

Under the joint venture with Ascension, Henry Ford will assume operations of the Brighton Center for Recovery; St. John Hospital; River District Hospital; Genesys Hospital; Providence Rochester Hospital; Providence hospitals in Novi and Southfield; and Macomb-Oakland hospitals in Madison Heights and Warren.