Advocate Aurora Health, Beaumont Health Explore Partnership Through Non-binding Letter of Intent

UCC-related Advocate Aurora Health and Beaumont Health have been exploring a potential partnership. Following approval last week by the Boards of Directors, today both organizations signed a non-binding letter of intent that paves the way to deeper discussions to create a leading health care system that would span across Michigan, Wisconsin and Illinois.

“We are excited to explore this option with an organization as highly regarded as Advocate Aurora Health known for their track record in health outcomes, population health and consumer experience,” said John Fox, president and chief executive officer, Beaumont Health. “The potential opportunity to leverage the strength and scale of a regional organization while maintaining a local focus and strong presence in Michigan as a leader and major employer is important to us.”

Advocate Aurora Heath’s Skogsbergh and Beaumont’s Fox.

Executive leadership from both organizations say that while talks are in early stages, the partnership under exploration would allow both not-for-profit health providers to strengthen and align their purposes of serving the needs of individuals, families and communities throughout the Upper Midwest.

“Beaumont Health has built a strong reputation for clinical excellence, education and research. This is a unique opportunity to explore a partnership with a like-minded, purpose-driven organization,” said Jim Skogsbergh, president and chief executive officer, Advocate Aurora Health.

Advocate Aurora and Beaumont began discussions at the end of 2019. However, partnership talks paused to allow both organizations to focus on COVID-19.
As a first step in their renewed discussions, the organizations agreed to an equal one-third governance representation of any future partnership between Beaumont and legacy Advocate Health Care and Aurora Health Care organizations, which merged in 2018 to create Advocate Aurora Health.

Both systems will work closely with state and regulatory agencies throughout the process, which began with notifications to all three Attorneys General earlier this week.

CHHSM member Advocate Aurora Health is one of the 10 largest not-for-profit, integrated health systems in the United States and a leading employer in the Midwest with more than 70,000 employees, including more than 22,000 nurses and the region’s largest employed medical staff and home health organization. Annually, it serves nearly 3 million patients across Illinois and Wisconsin. In 2018, Adovacte Aurora  contributed $2.1 billion in charitable care and services to its communities.

Beaumont Health is Michigan’s largest health care system. The not-for-profit organization provides patients with greater access to compassionate, extraordinary care, every day. Beaumont Health has a total annual net patient revenue of $4.7 billion and consists of eight hospitals with 3,429 beds, 145 outpatient sites, nearly 5,000 affiliated physicians and 38,000 employees, including 11,000 nurses. 3,500 volunteers help support the organization. In 2018, Beaumont Health had about 178,000 inpatient discharges, 18,000 births and 573,000 emergency visits.