Ascension Borgess Southwest Michigan to be sold to Indiana’s Beacon Health

KALAMAZOO, Mich. — Ascension Borgess Southwest Michigan will soon be sold to Indiana-based Beacon Health System.

Thursday, Beacon Health signed a “definitive agreement” to acquire Ascension Michigan’s southwest region, according to officials.

Beacon Health CEO Kreg Gruber said conversations about the sale began last year when Ascension Borgess approached them.

“We’re excited about it, we’ve have a track record of success doing this with the communities we’ve gone into,” Gruber said.

Back in 2021, Beacon Health System bought Three Rivers Health, and Gruber said they were ready to expand more into Southwest Michigan.

“This is commitment to local governance, local leadership, local delivery of health care,” Gruber said.

Once the transaction is complete in the summer, Beacon Health will take ownership of four hospitals, 35 outpatient clinics and an ambulatory surgery center operated by Ascension.

This includes Ascension Borgess Hospital in Kalamazoo, Ascension Borgess Allegan Hospital, Ascension Borgess-Lee Hospital and Ascension Borgess-Pipp Hospital.

“As a regional provider, Beacon Health System is positioned to serve patients through an integrated care delivery system to ensure that Southwest Michigan has access to sustainable, quality health care long into the future,” Scott Cihak, FACHE, chief operating officer of Ascension Michigan, said. “After an in-depth review, we found that our organizations are well-aligned culturally, which will streamline the integration process. Our communities are in good hands.”

Changes will be made under Beacon Health System to enhance services and improve quality care, according to Gruber.

“We don’t want to see disruption in care, but over time we want to enhance those services, we want to add additional physicians, we want to add additional specialties,” Gruber said.

Once operational as Beacon Health, there will be advanced online scheduling where a patient can self-schedule themselves, something that isn’t currently available under Ascension.

“We plan to do that day one,” Gruber said.

According to Beacon Health, the acquisition will ensure communities served by Ascension will continue to have access to quality care “for generations.”

“By expanding its service area, Beacon will create a great opportunity to support efficient quality care throughout the region. This acquisition enhances Beacon’s strength as a locally owned and governed health system in the constantly evolving healthcare environment,” officials said in an online statement.

Current Ascension patients are expected to receive the same care with minimal disruptions before and after the sale.

The transaction is expected to be finalized this summer, however, there does still need to be approval from the state.

During Thursday’s press conference, Gruber refused to discuss details of how much the purchase was.