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Ascension Health System is selling their 130 year old Ascension Borgess operation to Beacon Health System of South Bend, Indiana. The Roman Catholic sponsored Ascension will no longer have any operations in Michigan. Beacon, a non profit, already has a Michigan footprint in Three Rivers and Marcellus:
Beacon Health System to acquire Ascension Healthcare System in southwest Michigan
By Heidi Prescott-Wieneke - April 03, 2025Beacon Health System, the locally owned and governed nonprofit healthcare leader in northern Indiana and southern Michigan, has signed a definitive agreement to acquire the Ascension healthcare system in southwest Michigan. The transaction is expected to close this summer, subject to standard regulatory approvals.
Once the transaction is complete, Beacon Health System will own Ascension’s network of four hospitals, 35 outpatient clinics and an ambulatory surgery center. The hospitals include Ascension Borgess Hospital, Ascension Borgess Allegan Hospital, Ascension Borgess-Lee Hospital and Ascension Borgess-Pipp Hospital. The largest facility is Ascension Borgess in Kalamazoo, a 422-bed acute care hospital. The system has more than 2,700 associates, including 261 providers.
“Beacon Health System’s primary focus is to deliver outstanding care to our communities. Expanding our reach deeper into southwest Michigan broadens access to high-quality, affordable care for communities served by Ascension, extends our service area and provides growth opportunity to further strengthen the health system,” said Kreg Gruber, Chief Executive Officer of Beacon Health System. “This acquisition will create a bright future for these communities by ensuring access to quality healthcare services for generations.”
The teams at Beacon Health System and Ascension are committed to working together to ensure a smooth transition for team members, physicians and consumers. Current Ascension patients will continue to receive the same excellent care from the providers they trust, with minimal, if any, disruption to patient care and community services prior to and after the closing.
“As a regional provider, Beacon Health System is positioned to serve patients through an integrated care delivery system to ensure that southwest Michigan has access to sustainable, quality health care long into the future,” said Scott Cihak, FACHE, Chief Operating Officer of Ascension Michigan. “After an in-depth review, we found that our organizations are well-aligned culturally, which will streamline the integration process. Our communities are in good hands.”
To learn more about the acquisition, visit beacon.health/bright-future.
No financial terms were disclosed.
Compass Group USA, Inc. just filed WARN Act notices announcing 244 permanent layoffs of their support personnel working at:
Ascension Borgess Allegan Hospital; Allegan
Ascension Borgess-Pipp Hospital; Plainwell
Ascension Borgess-Lee Hospital; Dowagiac
Ascension Borgess Hospital; Kalamazoo
Ascension Borgess Health & Fitness Center; Kalamazoo
https://www.michigan.gov/leo/bureaus-agencies/wd/data-public-notices/warn-notices
The layoffs take effect on July 1, 2025. No word on whom Beacon Health has hired to replace Compass and its workers.
The sale of Southwest Michigan’s Ascension Borgess hospitals to Beacon Health System closed today, July 1st:
Ascension Borgess hospitals officially sold, now part of Beacon Health System
By Aya Miller | July 1, 2025KALAMAZOO, MI -- Beacon Health System has officially acquired Southwest Michigan’s Ascension Borgess hospitals, Tuesday, July 1.
Beacon, an Indiana-based nonprofit, announced the plan to purchase in April. The acquisition includes four hospitals, 35 outpatient clinics and an ambulatory surgery center.
The acquired hospitals include:
Ascension Borgess Hospital in Kalamazoo
Ascension Borgess Allegan Hospital
Ascension Borgess-Lee Hospital in Dowagiac
Ascension Borgess-Pipp Hospital in Plainwell“As a locally governed nonprofit organization, we remain committed to a community focus, driven by our mission to deliver outstanding care, inspire health and connect with heart,” said Kreg Gruber, Beacon’s chief executive officer.
Ascension approached Beacon last fall about an acquisition after Ascension facilities in the Detroit metro-area partnered with Henry Ford Health.
Beacon patients will have access to more specialists, enhanced resources and coordinated care through Beacon’s expanded system, the release said.
With the acquisition of Ascension’s Southwest Michigan facilities complete, 2,700 associates, including 259 providers, will transition from Ascension into the Beacon system.
Nurses with what’s now being called Beacon Kalamazoo (formerly Ascension Borgess Kalamazoo), previously expressed concerns they were unsure of whether their employment would transfer to Beacon. The Kalamazoo hospital is the largest of the four in the purchase.
Nurses weren’t given specific information about whether they meet requirements for their employment to transfer, said Lori Batzloff, a nurse at the Kalamazoo hospital and president of the local Michigan Nurses Association chapter.
Beacon Health was established in 2011 after a merger between Memorial Hospital of South Bend and Elkhart General Hospital. Since then, the nonprofit has grown “organically and opportunistically,” Gruber said.
Beacon has previously acquired facilities in Bremen, Indiana, and Three Rivers Health in Michigan.
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