Advocate Aurora, Beaumont Exploring Health Care Systems Merger

DOWNERS GROVE, IL — Advocate Aurora Health and Beaumont Health are in talks over a potential merger that could create a $17 billion health care system covering Illinois, Michigan and Wisconsin. Officials from both organizations announced Wednesday they are set to have "deeper discussions" about a partnership after shelving talks due to the outbreak of the coronavirus in the U.S.

The potential merger could be finalized by the end of 2020, Beaumont CEO John Fox said Wednesday on a conference call with reporters.

"Beaumont Health has built a strong reputation for clinical excellence, education and research," Advocate Aurora Health President and CEO Jim Skogsbergh said in a news release. "This is a unique opportunity to explore a partnership with a like-minded, purpose-driven organization."

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Fox said the merger provides an opportunity for Beaumont to remain a leader in Michigan’s health care industry and would allow the company to maintain "a local focus."

"We are excited to explore this option with an organization as highly regarded as Advocate Aurora Health known for their track record in health outcomes, population health and consumer experience," Fox said.

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Advocate Aurora Health became one of the 10 largest not-for-profit health care systems in the U.S. when it formed in 2018 following the merger of Advocate Health Care and Aurora Health Care. Advocate Aurora employs more than 70,000 people in Illinois and Wisconsin, and Beaumont has about 38,000 employees in Michigan, according to the companies.

By merging the two company’s assets, the health systems could generate about $17 billion in revenue, Fox said, adding Beaumont is not planning to cut jobs or reduce services, according to a report by the Chicago Tribune.

Adam Mesirow, a spokesperson for Advocate Aurora Health, said the companies’ announcement Wednesday that they have signed a letter of intent to continue discussions "is just the beginning of partnership explorations."

"Our focus currently is to explore how a partnership can accelerate our commitment to the communities we serve while improving care and reducing cost," Mesirow said in an email.

The merger would offer patients expanded access to services and experts "focused on delivering better outcomes at a lower cost," Mesirow said.

"We strongly believe this will be good for our patients and consumers as we work to improve the overall health and well-being of the communities we serve," Mesirow said.