By Jordan Wilcox
Assistant Publisher
For the second time in six years, Allegan’s hospital will be under new ownership.
Beacon Health System is a South Bend-based, non-profit healthcare provider with more than 8,100 associates, 1,000 physicians, half a dozen hospitals in Northern Indiana, and the Three Rivers Health Hospital in Three Rivers, MI.
On April 3, it was announced that Beacon had signed a definitive agreement to acquire all Ascension Borgess properties, including Borgess’s four hospitals – Ascension Borgess Allegan (formerly Allegan General), Ascension Borgess-Pipp in Plainwell, Ascension Borgess in Kalamazoo, and Ascension Borgess-Lee in Dowagiac – as well as 35 outpatient clinics, an ambulatory surgery center in Kalamazoo, three community foundations, and a stake in the Western Michigan University Homer Stryker M.D. School of Medicine (WMed).
Beacon CEO, Kreg Gruber expressed great satisfaction and excitement over the opportunity to acquire Borgess.
Following the merger announcement, he issued the following statement, “Beacon Health System’s primary focus is to deliver outstanding care to our communities. Expanding our reach deeper into southwest Michigan broadens access to high-quality, affordable care for communities served by Ascension, extends our service area, and provides growth opportunity to further strengthen the health system. This acquisition will create a bright future for these communities by ensuring access to quality healthcare services for generations.”
Gruber also said that from their end the acquisition made sense not only because they can expand the health system, but because they can also expand their residency and training programs, something they’ve already reached their cap on in the South Bend Area. They believe the stake in WMed will be a great catalyst for this.
However, that’s not an indication that Beacon will be cutting jobs or services. In fact, it’s just the opposite.
When asked directly by Wilcox Newspapers, Gruber said that Beacon will attempt to keep all 2700 of Borgess’s employees, and no job losses should be expected.
“Providing jobs is a key priority. All southwest Michigan clinicians and associates will be offered the opportunity to continue employment with Beacon Health System, provided they follow Beacon’s hiring process and meet the legal requirements to work.”
When asked about updates to Borgess’s facilities and systems, Gruber said that there shouldn’t be any big changes in the near future, but they do plan to enhance services and improve care.
“The teams at Beacon Health System and Ascension are committed to working together to ensure a smooth transition for team members, physicians, and consumers. Current Ascension patients will continue to receive the same excellent care from the providers they trust, with minimal, if any, disruption to patient care and community services prior to and after the closing.”
One thing that is planned is bringing the advanced online self-scheduling software that Beacon uses at their other hospitals to the Borgess ones.
Beacon also plans to change the hospitals’ overall guiding philosophy. In Indiana, Beacon is known for their “local governance model,” and Gruber says that’s exactly what will be implemented in Southwest Michigan.
Each hospital will have a local governance board made up of 14 community volunteers, serving on three three-year terms. The board will be responsible for oversight, advice, strategic planning, and serve as what Gruber calls, “his boss.”
Furthering on their local philosophy, Gruber also said that the three local community foundations affiliated with the Allegan, Kalamazoo, and Dowagiac hospitals will be absorbed into Beacon’s Foundation, but “any dollars raised in those communities will stay in those communities.”
As to how this whole thing came about, Gruber says discussions began when Ascension approached them late last year about buying the Borgess properties to complete their exit from Michigan, something the St. Louis, MO-based corporation has been trying to do for years.
One year ago, Ascension owned 16 hospitals in Michigan. In August, they sold their four Northern Michigan hospitals to MyMichigan Health; and in October, they sold their eight Southeast Michigan hospitals to Henry Ford Health. With just the four Borgess hospitals left, Ascension wanted a local, community-oriented buyer.
Additionally, IRS filings and recent news reports show that Borgess has been struggling with staffing and finances, problems that Beacon has a proven track record of being able to overcome in their acquired properties.
With those two factors in mind, both parties agreed that Beacon was perfect.
COO of Ascension Michigan, Scott Cihak, FACHE, had this to say about the choice, “As a regional provider, Beacon Health System is positioned to serve patients through an integrated care delivery system to ensure that southwest Michigan has access to sustainable, quality health care long into the future. After an in-depth review, we found that our organizations are well-aligned culturally, which will streamline the integration process. Our communities are in good hands.”
The transaction is pending regulatory approval from both the Michigan and Indiana Attorney Generals, but is expected to close this summer.
Gruber invites anyone who wants to learn more about the acquisition to visit https://beacon.health/bright-future.
