The University of Michigan Health Board announced the purchase of Sparrow Health Systems. With an investment of $800 million, UM Health plans to expand clinical care services for Mid-Michigan residents, a statement said Thursday night.
“This enables Sparrow to achieve our long-term strategy of helping to create a statewide system of care and allows us to accelerate growth and continue our 126-year commitment to providing world-class care close to home,”
Sparrow Health System Board Chair John Pirich.
The two health systems began working together in 2019 around pediatric services, leading to new partnerships and agreements.
“The partnership with the University of Michigan Health provides Sparrow the opportunity to take a greater leadership role in improving the health of the communities we serve,”
Sparrow Health System CEO James Dover.
Sparrow has fallen on hard times financially in recent years. In September, the company opened a $20 million emergency room in Okemos. Later that month, it confirmed it would lay off hundreds of employees.
In November 2021, Sparrow’s local branch of the Michigan Nurses Association, or the Professional Staff Council of Sparrow Hospital, authorized a strike due to an impasse in contract negotiations. The union finally agreed to a new three-year contract in December 2021.
The UM partnership is expected to drive job growth and career development, as well as grow UM Health’s minority investment in Sparrow’s Physicians Health Plan. Crain’s Detroit Business first reported the deal.
