Even large hospitals are looking to scale up these days. That’s what drove Allegiance Health, a 480-bed community hospital in Jackson, Michigan, to sign on with Detroit-based Henry Ford Health System. Henry Ford is a five-hospital system that provides both health insurance and health care delivery, including acute, specialty, primary and preventive care services.
Allegiance Health wasn’t financially troubled, having reported nearly $480 million in operating income through June 30, 2015, and about $32 million in EBITDA. This deal between the two not-for-profit systems will enable Allegiance to expand its services and build clinical capacity.
The process isn’t expected to take very long, either. The respective Boards of Trustees for each entity approved a definitive agreement for Allegiance to join Henry Ford Health System on March 14, 2016. The announcement of the definitive agreement said that, following final regulatory approvals and the closing process, this deal should be complete by April 1, 2016.