Sparrow Health System has officially joined University of Michigan Health, effective April 1.
Sparrow and U-M Health, the clinical care enterprise of Michigan Medicine, have received the necessary regulatory approvals to partner after announcing their plans in December to create the premier statewide system of care.
Sparrow has more than 120 sites of care and is one of the largest health systems in Michigan, with about 10,000 caregivers and approximately 600 employed primary-care providers and specialists. With the addition of Sparrow, U-M Health now oversees more than 200 care sites across the state and has grown to be a $7 billion organization.
“This is an incredibly proud moment for Sparrow, as joining University of Michigan Health enables us to accelerate our expansion of services, build greater breadth and depth of clinical expertise, and seamlessly integrate leading-edge technology and other updates into our facilities,” said James F. Dover, Sparrow Health System president and CEO.
“We look forward to realizing our shared goal of delivering nationally renowned clinical excellence in an accessible way for patients.”
Board of Regents Chair Paul Brown said, “This combination creates a clinical-care network that builds upon the strengths of the world-class University of Michigan Health academic medical center and Sparrow’s successful community-based health system.”
U-M Health has committed to invest $800 million in Sparrow, to be funded through hospital operations and strategic investments over eight years. The new agreement builds upon the successful partnership formed through U-M Health at Sparrow Children’s Center, as well as U-M Health’s investment in Sparrow’s health plan, Physicians Health Plan.
“We become part of University of Michigan Health knowing that we have had a successful partnership in the past and have the same vision for the future,” said Sparrow Board Chair John Pirich. “This enables Sparrow to achieve our long-term strategy of helping to create a statewide system of care while providing world-class care close to home.”
Marschall S. Runge, CEO of Michigan Medicine, dean of the Medical School and executive vice president for medical affairs, said the partnership advances U-M Health’s long-term vision of a statewide system of highly coordinated care.
“The completion of this transaction represents a special moment and, as one team, we are well positioned to unlock new opportunities and share best practices while providing our patients with the highest level of care,” Runge said. “We are confident that, together, University of Michigan Health and Sparrow will bring increased health care innovation to mid-Michigan and beyond.”