Please call us at

Small Michigan hospitals look to merge

The last independent hospitals in Michigan are feeling the effects of doing business as a freestanding company. That could be why the 37 hospitals that remain independent are looking around for larger hospitals to potentially merge or affiliate with.

Merging larger hospitals with their smaller counterparts could also bring around monetary benefit. On the heels of federal health reform, the arrangement could help companies earn more money for strides in savings and improvements. While not all of them are willing to discuss it publicly, many hospitals are exploring their options on possible mergers and acquisitions. The entire landscape of hospitals in Michigan has changed dramatically over the last 20 years, when most of them were still freestanding.

A merger can stand to benefit the smaller companies even more. It gives these small hospitals the resources to pay for necessary, but expensive upgrades, in addition to providing service to a wider range of the community. But such arrangement also carries with it negative effects. Smaller hospitals can become entrenched in their community, providing personalized and affordable health care. When merged with a larger hospital, the smaller hospitals no longer call the shots and this community-centric mentality might not remain.

Some smaller hospitals in Michigan are more attractive than others -- whether that is for their updated facilities or high rate of patient satisfaction. Many of these smaller hospitals are heavily scrutinizing the larger companies that are looking to acquire them to ensure they are a good fit. The Michigan Health and Hospital Association monitors these types of mergers and makes sure that the larger company that acquires the smaller one continues fulfilling their obligations to the local community.

Source: Detroit Free Press, "Last Michigan hospitals standing solo flirt with mergers," Patricia Anstett, Dec. 25, 2011

No Comments

Leave a comment
Comment Information
Email Us For A Response

Need Legal Advice?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Farmington Hills Office
200 Kaufman Financial Center
30833 Northwestern Hwy.
Farmington Hills, MI 48334

Phone: 248-626-5000

Maps & Directions