Ascension to Transfer Four Southwest Michigan Hospitals to Beacon Health System

Pending regulatory approval, the deal is expected to close by summer.

Ascension is set to divest another segment of its hospital network, transferring four hospitals in Southwest Michigan to Indiana-based Beacon Health System.
Pending regulatory approval, the deal is expected to close by summer.

The agreement includes Ascension Borgess Hospital, Ascension Borgess Allegan Hospital, Ascension Borgess-Lee Hospital, and Ascension Borgess-Pipp Hospital. It also encompasses related care facilities within Ascension’s Southwest Michigan Region. The financial terms of the deal have not been disclosed.

Once finalized, the acquisition will expand Beacon’s operations to 11 hospitals and approximately 190 care sites. The system will also grow to employ nearly 10,800 individuals, marking a clear geographic expansion into Michigan.

Employment continuity and operational integration planned

Beacon stated that all current clinicians and employees will be offered positions contingent on legal employment requirements and completion of the hiring process. In a statement on Thursday, Beacon emphasized its intent to minimize care disruptions during the transition and committed to honoring existing community obligations.

“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,” said Kreg Gruber, Chief Executive Officer of Beacon Health System. “This acquisition will create a bright future for these communities by ensuring access to quality healthcare services for generations.”

Beacon also highlighted plans to integrate the facilities under its brand and improve system-wide efficiency, particularly in specialty care services.

Part of Ascension's broader realignment strategy

The sale is the latest in a series of divestitures by Ascension, a Catholic nonprofit and one of the largest health systems in the U.S. The organization has been undergoing structural realignment after reporting significant financial losses. For the fiscal year ending last June, Ascension recorded a $1.4 billion recurring operations loss and a $1.8 billion operating loss, with a net loss nearing $1.1 billion.

In recent months, Ascension sold eight hospitals to Prime Healthcare in a $370 million deal and transferred three facilities in northern Michigan to MyMichigan Health. Additionally, eight hospitals in southeast Michigan were brought into a joint operating venture with Henry Ford Health.