$10.5 Billion Health Care System Merger: Henry Ford and Ascension Join Forces

In a groundbreaking move, Henry Ford Health and Ascension Michigan, along with Genesys, have announced their intention to form a colossal $10.5 billion health system based in Detroit. This joint venture aims to revolutionize the healthcare landscape in Michigan, promising enhanced services and innovative care solutions for its vast patient base.

A Groundbreaking Joint Venture, Not a Merger

Contrary to popular belief, this collaboration is not a merger or an acquisition. Instead, it’s a joint venture that involves no monetary exchange. Both Henry Ford Health and Ascension Michigan remain optimistic about finalizing the transaction by the upcoming summer. The new organization will retain the Henry Ford Health branding and leadership, with Robert Riney, the current CEO of Henry Ford Health, at the helm. Interestingly, the Catholic identity of Ascension Michigan will continue, at least for the foreseeable future.

The Potential Impact on Patients and Employees

While the leaders behind this venture have remained tight-lipped about specific details, there are numerous questions surrounding its implications. Concerns range from the ownership structure of the new health system to potential changes in service pricing and insurance coverage. Furthermore, the fate of the employees, especially in light of potential layoffs or site closures, remains uncertain. The combined market share of this new health system will undoubtedly attract the attention of federal and state regulators, especially in light of recent antitrust laws.

The Larger Picture: The State of Healthcare Mergers

The healthcare industry has witnessed a surge in mergers and acquisitions in recent years. While hospital leaders argue that such moves can foster innovation and improve access to care, research suggests otherwise. Studies indicate that hospital consolidation can lead to increased prices for consumers and potentially diminish the quality of care due to reduced competition. The Biden administration has been particularly vigilant in this regard, blocking several mergers in the past that threatened to limit market competition.

Ascension’s Financial Struggles and the Bigger Picture

Many health systems across the U.S., including Ascension, are grappling with financial challenges in the wake of the COVID-19 pandemic. Coupled with staffing shortages and inflation, these institutions are facing mounting pressures. Ascension reported a staggering operating loss of $3 billion in fiscal year 2023, leading to the sale of several of its assets. Larger health systems often have the upper hand in negotiating prices, which can lead to higher reimbursements from insurance companies and reduced costs from suppliers.

Addressing Differences in Values and Practices

A significant point of contention in this joint venture is the differing values of Henry Ford and Ascension, especially concerning reproductive health care and LGBTQ+ patient and employee treatment. Ascension, being a Catholic institution, adheres to the Ethical and Religious Directives for Catholic Health Care Services, which prohibits procedures like contraception, abortion, and in vitro fertilization. On the other hand, Henry Ford has been a vocal supporter of LGBTQ+ care, offering services like gender reassignment surgeries and hormone treatments.


The proposed joint venture between Henry Ford Health and Ascension Michigan is poised to reshape the healthcare landscape in Michigan. While the collaboration promises enhanced services and innovative care solutions, it also raises several questions and concerns. As the details of this venture unfold, it will be crucial to ensure that the primary focus remains on providing world-class healthcare to all, irrespective of their geographic, demographic, or socioeconomic status.