Attorney Aurora said in a statement: “While our discussions have progressed well initially, Beaumont has had internal issues over the past few months and so they are focusing on their local operations. We are disappointed but understand they need to change their attention internally. As such, we will go ahead and continue to believe in the value of scalability to make healthcare better and more affordable. “
“While discussions began in late 2019, they were suspended earlier this year as COVID-19 accelerated in the Midwest,” Beaumont said in a statement.
Jim Skogsbergh, President and CEO of Advocate Aurora Health, said in a statement: “We have great respect for Beaumont Health and continue to believe that economies of scale play a critical role in improving the quality, accelerating change and reducing costs in the healthcare community will be playing tomorrow. ”
Downers Grove and Milwaukee-based attorney Aurora first announced merger talks with Beaumont in June.
Combining the chain of 26 hospitals and Beaumont of eight hospitals would have created a healthcare system with sales of $ 17 billion. That would make it the seventh largest nonprofit scheme in the country behind Trinity Health in Livonia, Michigan.
In January, Skogsbergh unveiled a plan to more than double the hospital network’s revenue from $ 12.2 billion to $ 27 billion in five years. When asked what Advocate Aurora would be looking for in a future partner, Skogsbergh said, organizations that care about people’s health.
Jay Greene writes for Crains Detroit Business.