Beacon Finalizes Acquisition of Ascension Southwest Michigan Facilities

Beacon Health System has completed its acquisition of Ascension’s Southwest Michigan Region, officially incorporating four hospitals, 35 outpatient clinics, an ambulatory surgery center, and more than 2,700 employees into its operations. The transaction, originally announced in early April, marks Beacon’s first expansion into Michigan, extending the Indiana-based nonprofit’s reach to a total of 11 hospitals and nearly 190 care sites staffed by close to 11,000 individuals.

The financial details of the deal were not disclosed.

As part of the acquisition, Beacon has taken over management of four facilities formerly part of Ascension: Beacon Kalamazoo (previously Borgess), a 422-bed acute care hospital; Beacon Allegan (formerly Borgess Allegan); Beacon Dowagiac (formerly Borgess-Lee); and Beacon Plainwell (formerly Borgess-Pipp). These join Beacon’s existing sites, which include Memorial Hospital in South Bend, Elkhart General Hospital, Beacon Granger Hospital, Community Hospital of Bremen, Memorial Epworth Center, and Three Rivers Health.

Beacon Chief Executive Officer Kreg Gruber stated, “This acquisition represents our continued commitment to strengthening health care in our region. Our patients will benefit from access to an expanded network of services and providers.”

In addition to expanding its geographical footprint, the acquisition facilitates a new affiliation between Beacon and Western Michigan University Homer Stryker M.D. School of Medicine. Beacon has previously indicated that the partnership will help support the growth of its residency program.

Another reason for pursuing the acquisition, as outlined by Beacon, was the more favorable Medicaid reimbursement rates in Michigan compared to Indiana. Beacon also reiterated that this integration would enhance recruitment and efficiency across the health system through operational scale.

While Beacon stated that it would offer employment to all eligible and interested employees from the acquired facilities, concerns were raised by the local nurses’ union about the clarity of communication from both Beacon and Ascension regarding employment criteria during the transition period.

Ascension, one of the largest nonprofit health systems in the United States, has been actively modifying its hospital portfolio. The organization has offloaded interests in 15 hospitals over the past three quarters as part of its effort to address a $1.4 billion annual operating loss. Simultaneously, Ascension announced it has finalized a $460 million transaction to acquire the majority stake in Texas’ Cedar Park Regional Medical Center from Community Health Systems. Additionally, a June agreement outlines Ascension’s acquisition of AmSurg, which includes 250 outpatient ambulatory surgery centers, reportedly valued at $3.9 billion. This move aligns with Ascension’s continued outpatient care expansion strategy, which President Eduardo Conrado has confirmed will persist when he becomes CEO in 2026.

Gruber also commented that Beacon’s identity as a locally governed nonprofit remains intact, with the organization committed to delivering patient-centered care through its expanded operations.