Michigan health system completes deal to acquire three hospitals

A little more than four months after announcing a deal had been reached, MyMichigan Health has completed its acquisition of three hospitals from Ascension Michigan.

MyMichigan Health has completed its acquisition of three hospitals, an ambulatory surgery center, and a host of clinics from Ascension Michigan.

MyMichigan Health has purchased the three hospitals, along with an ambulatory surgery center and associated physician practices. The system completed the deal late last week. MyMichigan and Ascension first announced the sale in late March.

Lydia Watson, MD, president and CEO of MyMichigan Health, says the deal involves more than expanding the footprint of the organization.

“This is not just about getting bigger, it’s about getting better,” Watson said in a statement. “Through the addition of these locations, we are building on the legacy Ascension has already established and our focus is to strengthen access to care and services for these communities.”

The biggest hospital MyMichigan Health acquires in the transaction is Ascension St. Mary’s of Saginaw, a 268-bed acute care facility. The hospital will now be known as MyMichigan Medical Center Saginaw.

MyMichigan Health is also acquiring Ascension St. Mary’s Towne Center, an ambulatory surgery center, emergency department and short stay facility. The facility is now named MyMichigan Medical Center Towne Centre.

MyMichigan also takes ownership of two smaller hospitals in the deal. The system purchased Ascension St. Joseph in Tawas, a 47-bed acute care hospital, which will now be called MyMichigan Medical Center Tawas.

And MyMichigan Health also acquired Ascension St. Mary’s of Standish, a 25-bed critical access hospital and 29-bed skilled nursing facility. It is now branded as MyMichigan Medical Center Standish.

Watson praised the quality of care Ascension Michigan has provided at the facilities, and she also highlighted the work of the staff.

“Their employees, providers and volunteers are compassionate, skilled and respected,” Watson said in her statement. “We are truly overjoyed to work with such exceptional teams that are already in place and have them part of the MyMichigan Health family.”

Mike Erickson has been named president of MyMichigan’s newest member hospitals in Saginaw, Standish, Tawas and Towne Centre, and he began his new leadership role at the beginning of the month.

“Building strong relationships with our teams, getting to know our patients and visitors, and being involved in the community are my top priorities,” Erickson said in a statement. “By understanding the needs and challenges of each area, we will help to leverage our strengths and address areas of growth. I am very optimistic for what our future holds.”

MyMichigan Health now serves nearly 1 million residents in 26 counties. The nonprofit health system is affiliated with the University of Michigan Health System.

With the deal, Ascension continues to slim down its portfolio. A nonprofit Catholic system, Ascension operates more than 100 hospitals nationwide, but it has been shedding some of its facilities as the system looks to control costs and improve its finances.

Last month, Ascension announced it has reached an agreement to sell five hospitals in Alabama to the University of Alabama Health System in a $450 million deal.

Last year, Ascension agreed to transfer Our Lady of Lourdes Memorial Hospital in Binghamton, N.Y., along with its physician practices, to the Guthrie Clinic of Sayre, Pa.

Michigan has seen its share of consolidation in the hospital industry. University of Michigan Health completed the acquisition of the Sparrow Health System last year.