Dearborn Mayor John B. O’Reilly Jr. thinks the $3.8 billion alliance that would be created by merging the Beaumont Health System, Botsford Health Care and Oakwood Healthcare systems is a positive signal that Oakwood, which operates its main hospital in Dearborn, has a place in the health-care market.
The plan was announced Friday.
Oakwood has four acute care hospitals, including its main hospital and medical center campus in Dearborn, and is one of the largest employers in Dearborn. For decades, it has been an important contributor to community life, O’Reilly said.
“I am very pleased because I knew that talks were under way to prepare Oakwood Hospital to be successful in the evolving health-care market place,” he said.
“I was very hopeful that the talks would center on locally managed operations, rather than a health-care company coming in from the outside. I cannot think of a better outcome than what has been proposed,” O’Reilly said. “Once completed, everyone living in the greater Detroit region should benefit from this remarkable plan.”
The mayor said that as health-care moves toward a wellness model based on early intervention and proactive treatments that achieves permanent solution, cost efficiency is a key.
“These new partners have already demonstrated their commitment to being the health care providers of the future and, with this proposal of combining their resources, they represent an invaluable asset for our entire region,” he said.
A primary goal for the new organization is to provide even better patient care by offering the right setting at the right time at an affordable cost, and improving overall patient care efficiencies, as well as operational efficiencies.
The proposed plan is not a merger or an acquisition. The three organizations are working toward coming together to combine operations through an affiliation agreement to create a new health system.
According to a statement from Oakwood, the proposed organization will be governed by a single board and executive leadership structure with representation from the three organizations.
John Lewis, Oakwood chairman of the board, will serve as the initial board chair.
Oakwood CEO Brian Connolly, along with the CEOs of Botsford and Beaumont, will serve on the CEO Council, overseeing the transition and implementation of the new system.
Connolly will remain as president and CEO of Oakwood during the period of transition. Connolly will also serve as transition executive.The organizations’ medical staffs will remain separate, according to Oakwood’s statement.