Henry Ford & Ascension Finalize JV, Integrating 13 Hosp

The newly formed entity employs approximately 50,000 people across 13 hospitals and 550 sites. The organization's annual revenues are expected to exceed $10 billion.

A joint venture between Henry Ford Health and Ascension, announced last year, is set to become official by the end of this month. 

The deal, closing on September 30 and launching on October 1, will combine eight southeast Michigan hospitals and an addiction treatment facility from Ascension under Henry Ford Health’s umbrella, creating a substantial healthcare system across the state.

This agreement maintains Henry Ford Health’s branding and headquarters in Detroit. The newly formed entity employs approximately 50,000 people across 13 hospitals and 550 sites. The organization's annual revenues are expected to exceed $10 billion. 

The joint venture retains Henry Ford’s President and CEO, Robert Riney, as the leader of the new organization, which will also include Henry Ford’s Health Alliance Plan. 

Regarding integration, Riney said, “Since we announced our proposed joint venture last fall, we’ve been engaged in thoughtful planning across our organizations—all focused on how we plan to come together to build the future of health on behalf of those we serve.”

This collaboration aims to improve healthcare delivery across southeast Michigan. The scale of the new entity is expected to enable enhanced care coordination, stronger population health initiatives, and other benefits. 

However, no cash transaction took place to form the partnership.

Formation of JV

The announcement highlighted several key appointments in terms of leadership. Adnan Munkarah, MD, will serve as president of the clinical enterprise and chief physician executive. 

Reportedly, Denise Brooks-Williams will be executive vice president and chief operating officer, while Robin Damschroder will serve as president of value-based enterprise and chief financial officer. 

Additional appointments include Steven Bender as executive vice president and chief legal officer, effective October 21, and Dennis Butts as executive vice president and chief strategy and network development officer.

Patrick Kelly, from Ascension, Michigan, has been named chief mission integration officer. Ascension Michigan’s chief clinical officer, Doug Apple, M.D., and chief operating officer, Tom Klein, will join the joint venture, although their specific roles have not yet been finalized.

Ascension’s Strategic Adjustments

This move represents a broader shift in Ascension's Michigan operations. Once the deal closes, Ascension will retain just four hospitals in the state, having recently transferred three others to MyMichigan Health. 

Ascension has been selling several hospitals nationally, including recent agreements with Prime Healthcare in Illinois and UAB Health in Alabama. These moves come after Ascension reported a substantial $3 billion operating loss in its 2023 fiscal year.

Henry Ford Health, on the other hand, continues to expand its reach. Alongside the joint venture, the health system is developing a multi-billion-dollar campus project. Henry Ford reported $7.8 billion in revenue for 2023, with an $80.5 million operating income.