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Published on March 28, 2024
MyMichigan Health Set to Acquire Four Ascension Michigan Sites Amid Regional Consolidation TrendSource: Andrew Jameson at English Wikipedia, CC BY-SA 3.0, via Wikimedia Commons

In a healthcare shake-up across mid-Michigan, MyMichigan Health is set to stretch its reach by tacking on four Ascension Michigan sites to its portfolio. The Midland-based health system, already overseeing a network spanning from Alma to Sault Ste. Marie has penned an agreement to scoop up Ascension properties in what many see as a play to bolster regional health service dominance. The deal, which awaits the nod from regulatory watchdogs, could stitch together a sizable chunk of Michigan's healthcare market by this summer, the organizations said.

With the ink still drying on the definitive agreement, eyes are on the sprawling 268-bed Ascension St. Mary's in Saginaw, a linchpin in the regional healthcare tapestry since 1873. Grappling with rising costs and a cutthroat healthcare arena, Ascension finds itself streamlining operations, and offloading facilities including Saginaw's emergency and surgery center, as well as a critical access hospital and skilled nursing facility in Standish, and an acute-care hospital in Tawas. According to a report by MLive, MyMichigan Health's President Lydia Watson highlighted shared values between the entities, ensuring quality healthcare continuation for the communities served.

While the handover spells an end to Ascension's direct reign over these facilities, Brian Peters, spearheading the Michigan Health & Hospital Association, suggested that such maneuvers are not novel but rather a part of an industry-wide trend towards consolidation to rein in costs and boost bargaining power. Yet skeptics exist. Dr. Bobby Mukkamala of Flint voiced concerns to ABC12, pointing to statistics suggesting that healthcare consolidation could hike costs by up to 50% in some regions.

Despite the potential for patient pushback on price hikes, current Ascension employees can breathe a sigh of relief, as job axing doesn't seem to be on MyMichigan's radar. "We are committed to strengthening recruitment and retention of all the employees," Watson assured in a statement obtained by the Detroit Free Press. Rather, the merge is seen as a shot in the arm for the system's specialty care capabilities, particularly in cardiovascular and neuroscience disciplines. The expanded patient base is expected to support and even grow the workforce in the Saginaw Bay region and beyond.

However, with such agreements typically resulting in cost savings for health systems, conducive to higher leverage in insurer negotiations and supply procurement, some worry about the impact on consumers. Both the Henry Ford Health deal and the new MyMichigan marriage stand to face rigorous regulatory scrutiny before the wedding bells can ring, aiming to shield patients from potential adverse outcomes of competition-limiting consolidation. Nonetheless, MyMichigan presses forward, poised to eventually hoist its banner over the newly added Ascension sites, rebranded with the University of Michigan's insignia as a testament to their shared clinical and business ties.