Finance Leader @ Blue Cross NC | FP&A, Capital Planning, Technology Adoption | I Tell Stories With Numbers
I am so interested to see how this will work via a JV. I wish I knew more about the advantages/disadvantage of a JV over a true merger. #healthcare #hospitals #mergersandacquisitons
In a joint venture, Henry Ford Health and Ascension Michigan are planning to form a new organization with $10.5 billion in revenue. Several Ascension hospitals in southeast Michigan will join with Henry Ford in a new organization with more than 550 sites of care and 50,000 employees. The systems hope to complete the transaction in the summer of 2024. Robert Riney, president and CEO of Henry Ford Health, would lead the new organization. “We share a deeply-rooted dedication to providing world-class healthcare that everyone deserves, regardless of geographic, demographic, or socioeconomic status," Riney says.
A joint venture differs from a full merger/acquisition in that each of the parties retains ownership/responsibility for assets/operations/liabilities falling outside of the scope of the joint venture. It is a way for each of the partners to pursue a more focused set of business objectives than what they might be pursuing in their legacy operations.
I wish I knew more about the advantages/disadvantages too. If you learn more I'm interesting in hearing about it!
High Impact Commercial Growth Executive | Emerging Trends Healthcare Strategy Advisor | Provider Payor Contracting Leader | High Performance Team Builder | Value-based Network & Benefits Innovator| Digital Health Leader
11moWonder if the JV’s are inspired by the DOJ and FTC’s increased scrutiny associated with these mega mergers in healthcare & the potential adverse impact they can have on cost to patient-consumers and employers who remain the largest purchasers of health care (?) https://www.statnews.com/2023/07/19/antitrust-scrutiny-health-care/