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Detroit hospitals to merge, announcement says

Big changes are coming for hospitals in the Detroit area, according to a recent announcement given by the officials for a number of different sites. The hospitals are expected to merge some time within the next year. The three specific hospitals that are going through the process are Beaumont Health System in Royal Oak, Oakwood Healthcare in Dearborn, and Botsford Hospital, which is located in Farmington Hills.

The combined numbers for the system would be staggering, as they would form the region's largest health care provider. They would have 153 different patient care sites to go along with the eight hospitals. All told, there would be around 25,500 employees, and the whole system would be worth roughly $3.8 billion dollars.

One important thing to note, though, is that officials have predicted that there would be reductions if the merger does go through. Some employees may be laid off and the total amount of patient beds could be reduced, for example. This could change the makeup slightly, but the system will still be huge.

The main reason for the merger is cost. Hospital officials believe that they could reduce their own costs and lower the money needed to operate by working together and creating a brand new organization, comprised of all of the parts of the old three.

One thing that will have to be considered during this process, as with all mergers, is how the laws impact what can and cannot be done. It will be important for officials to ensure that they still meet all health care standards and that local and federal health care laws, which are only increasing in number, are considered while drafting the merger's terms.

Source:  Detroit Free Press, "Officials announce merger of Beaumont, Oakwood and Botsford hospitals" JC Reindl, Mar. 21, 2014

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