Chris Holman welcomes back John Foren, Director, Media Relations and Corporate Communications. Sparrow Health System, East Lansing, MI
Watch John and Chris discuss questions that have come up after this major announcement by Sparrow Health System in the YouTube video shared below:
Why is Sparrow joining U-M Health?
Sparrow’s current partnership with U-M Health, which dates to 2019, has been very successful. It led to the two organizations having conversations about the development of a customized, unique partnership model. We found common ground in our visions for the need to create a statewide system of care that brought together community-focused organizations to complement the traditional academic medical center and research platforms. The result is beyond what either of us could do on our own, and Sparrow is honored to be joining a nationally renowned health system known for its clinical care, quality, research, and innovation.
Additionally, U-M Health is committing $800 million in capital investment to Sparrow, funded through hospital operations and strategic investments over eight years. This investment will enable Sparrow to accelerate the expansion of services, build greater breadth and depth of clinical expertise, and seamlessly integrate leading-edge technology and other updates into the region.
For U-M Health, this is an important step toward its vision of a statewide system of highly coordinated care. Sparrow will co-lead in the creation of this statewide system along with Sparrow Medical Group playing a central role in physician development. Moreover, U-M Health already provides specialty care for many families from the greater Lansing area.
Is Sparrow changing its name or logo? What kind of changes can we expect for the Sparrow image and brand?
The Sparrow brand is known for high-quality care across Mid-Michigan for over 126 years. Sparrow is also proud to use the U-M Health brand, which stands for the highest degree of quality, innovation, and research. In the coming year, we expect to introduce strategic updates to the Sparrow brand to appropriately reflect the relationship between our organizations. The long-term Sparrow brand strategy will be informed by the caregiver and patient feedback within the context of the U-M Health brand strategy. Any changes will be communicated to caregivers in advance.
Will U-M Health doctors practice at Sparrow facilities?
U-M Health doctors already practice at Sparrow in several capacities. Our pediatric joint venture has built upon the strength of the existing Sparrow care teams and brought several C.S. Mott Children’s Hospital pediatric specialists to Lansing. More recently, our plastic surgery collaborations have brought U-M surgeons to E.W. Sparrow Hospital. With Sparrow now joining U-M Health, a key priority will be supporting Sparrow’s existing clinical expertise and adding new doctors, including U-M Health doctors, to Sparrow locations where appropriate to help meet the needs of our communities.
Why do we say that Sparrow is joining U-M Health rather than affiliated, acquired, or bought?
The word “affiliation” is included in some of the underlying legal agreements, but isn’t a good descriptor of what is happening. We say that Sparrow is joining U-M Health because this was a choice made by Sparrow just as much as a choice by U-M Health. The words “acquired” and “bought” are not correct when we describe how two not-for-profit organizations come together, but they also incorrectly imply that Sparrow didn’t have a choice in the matter.
Does this impact Sparrow’s relationship with Michigan State University Colleges of Human Medicine, Osteopathic Medicine and Nursing, and other training programs?
Sparrow has a longstanding relationship with MSU that continues to provide vital and valued clinical services to the communities of Mid-Michigan. The pediatric care provided at University of Michigan Health at Sparrow Children’s Center is a great example of Sparrow, U-M Health, and MSU physicians coming together to provide the highest quality pediatric care in Mid-Michigan. Other examples where Sparrow works closely with MSU include neurology and medical education. Both Sparrow and U-M Health value the relationship with MSU and hope to continue their affiliation with MSU and its training programs.
Is Sparrow joining U-M Health because of financial issues?
Sparrow’s post-COVID financial challenges are not the driver of this partnership. Creating a statewide health system with U-M Health has been an ongoing discussion since 2019. Health systems across the nation are experiencing financial challenges with hospital operating costs climbing 10 percent year-to-date due to rising inflation and labor costs which affect the entire industry. Sparrow is not alone in facing these challenges. Joining U-M Health will enable Sparrow to accelerate the expansion of services, build greater breadth and depth of clinical expertise, and seamlessly integrate leading-edge technology and other updates into facilities.
Will there be any layoffs at Sparrow as a result of this change?
There are no layoffs anticipated as part of the integration. The driving motivation behind the two organizations coming together is to bring the strengths of both health systems together to better care for the communities they serve. We are experiencing a period of unprecedented challenges in the labor market and we have a stated goal to grow and expand our care both locally and across the state. We believe we will need every exceptional caregiver we have, regardless of role. If we are able to combine some support service functions over time, we will do our best to utilize existing caregivers to take on the ever-expanding needs. This has been the case over time as Sparrow has brought in other hospitals into our health system.
Sparrow to join U-M Health under proposed agreement
LANSING, MI – Sparrow Health System will join University of Michigan Health under a proposed agreement that will expand services to Mid-Michigan residents, provide access to the highest level of care, improve facilities and technology, and begin a new chapter in Sparrow’s storied history.
The U-M Board of Regents approved moving ahead with the agreement at its Dec. 8 meeting, as did the Sparrow Health System Board of Directors on Nov. 28. The agreement is expected to be completed in the first half of 2023, pending final regulatory approvals and completion of the closing process.
Joining U-M Health will have a far-reaching impact on Sparrow and Mid-Michigan, expanding access to clinical care throughout the region and, ultimately, statewide.
“The partnership with University of Michigan Health provides Sparrow the opportunity to take a greater leadership role in improving the health of the communities we serve,” said Sparrow Health System President and CEO James F. Dover.
Added Sparrow Health System Board Chair John Pirich: “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.”
U-M President Santa Ono pointed out that an affiliation agreement signed by the two organizations in 2019 for pediatric services paved the way for ongoing collaboration between the two systems.
“The mission, vision, and values of the two organizations are aligned with a common goal to deliver on the promise of nationally renowned clinical excellence in an accessible setting,” he said.
According to Paul Brown, Chair of the Board of U-M Regents, “This agreement strengthens U-M Health’s ability to provide quality healthcare in communities beyond southeast Michigan, expanding our mission as a statewide referral site for the most critically ill.”
“For University of Michigan Health, this is an important step toward our long-term vision of a statewide system of highly coordinated care; a vision that Sparrow also embraces and is excited to build toward,” said Marschall S. Runge, M.D., Ph.D., CEO of Michigan Medicine, dean of the U-M Medical School and executive vice president for medical affairs at the University of Michigan.
“Upon closing, U-M Health will create a clinical care network that builds upon the strengths of the world-class U-M academic medical center and a very successful community-based health system. Together the two organizations will focus on bringing increased healthcare innovation to mid-Michigan and beyond.”
LaKeeya Tucker, D.O., Medical Chief of Staff for E.W. Sparrow Hospital, said as a clinician she is excited about working with her U-M Health colleagues to improve access to world-class care throughout the region.
“We are doing something special here by combining the community care and know-how that Sparrow has long been known for with the clinical expertise and commitment of U-M Health,” Dr. Tucker said.
University of Michigan Health has committed $800 million in investment to Sparrow Health System, which will be funded through facility projects, operations, and strategic investments over eight years.
“We will invest in numerous improvement and growth initiatives based on community need, such as renovations to our Neonatal Intensive Care Unit at E.W. Sparrow Hospital in Lansing and geographic growth across the communities we serve. This will also strengthen our key service lines including cardiology, oncology, orthopedics, and neuroscience.” noted Joseph Ruth, Sparrow Health System’s executive vice president and chief operating officer. “This infusion of investment into Sparrow services will provide job growth and career development opportunities that would not otherwise be available to our caregivers.”
According to U-M Health President David Miller, M.D., M.P.H.: “This agreement builds upon the successful partnership formed through U-M Health at Sparrow Children’s Center. This established partnership has clarified the strong cultural alignment between U-M Health and Sparrow while providing incredibly important pediatric care to families throughout Mid-Michigan. Our expanded partnership with Sparrow will further strengthen U-M Health’s ability to provide quality health care in communities beyond southeast Michigan.”
The partnership will also build on U-M Health’s minority investment in Sparrow’s health plan, Physicians Health Plan (PHP). PHP provides high-quality healthcare coverage to more than 70,000 members and 300 employers across Michigan and includes a Medicare Advantage plan.
Sparrow has more than 115 sites of care, including E.W. Sparrow Hospital in Lansing, community hospitals in Carson City, Charlotte, Ionia, and St. Johns, Sparrow Specialty Hospital, and nearly 500 Sparrow primary care providers and specialists serving patients across the region.
With the addition of Sparrow, U-M Health will become a $7-billion organization with more than 200 care sites across the state.
A press conference was held at 10 a.m. Friday, Dec. 9, that will include leaders from both Sparrow Health System and University of Michigan Health. This occurred at the Gathering Place at E.W. Sparrow Hospital, E. Michigan Avenue, Lansing, MI.
Here's an interview Chris did with Dr. Entler last month about the original announcement.
About Sparrow:
Sparrow is Mid-Michigan’s premier healthcare organization and includes hospitals in Lansing, Carson City, Charlotte, Ionia, and St. Johns, as well as Sparrow Specialty Hospital, Physicians Health Plan, Sparrow Care Network, Sparrow Medical Group, Michigan Athletic Club, and AL!VE. Through our partnerships and the dedication of our 10,000 Caregivers, Sparrow pursues a vision to be nationally recognized as a leader in quality and Patient experience. For more information, visit www.sparrow.org.
About Michigan Medicine:
At Michigan Medicine, we advance health to serve Michigan and the world. We pursue excellence every day in our five hospitals, 125 clinics and home care operations that handle more than 2.3 million outpatient visits a year, as well as educate the next generation of physicians, health professionals and scientists in our U-M Medical School.
Michigan Medicine includes the top ranked U-M Medical School and University of Michigan Health, which includes the C.S. Mott Children’s Hospital, Von Voigtlander Women’s Hospital, University Hospital, the Frankel Cardiovascular Center, Kellogg Eye Center, University of Michigan Health West and the Rogel Cancer Center. The U-M Medical School is one of the nation's biomedical research powerhouses, with total research funding of more than $500 million.
More information is available at www.med.umich.edu/.
