Dearborn, Mich.-based Oakwood Healthcare isn't up for sale, Oakwood CEO Brian Connolly has told Crain's Detroit Business.
Crain's has spoken with sources, including physicians on Oakwood's medical staff and competing hospital executives, and sources who wish to remain anonymous have said the system is in talks with Dallas-based Tenet Healthcare Corp. and Troy, Mich.-based Beaumont Health System. However, Mr. Connolly said there are no talks in progress with Tenet, according to the report.
Beaumont CEO Gene Michalski has told Crain's his three-hospital system has started discussions with several other systems about closer relationships, although he wouldn't specify names or the type of business arrangements they're considering. Last year, Beaumont and Detroit-based Henry Ford Health System dissolved merger plans that would have created a $6.4 billion, 10-hospital system.
Oakwood's net income has declined steadily during the past few years, declining from $64.1 million in 2009 to $39.6 million in 2011. The 2011 figure was bolstered by a $29 million payment from the federal government for settling a residency program funding dispute, according to the report. But Mr. Connolly has reported 2013 was a good year for the system, which hit all of its financial targets and brought in more net income than the $39.6 million it reported in 2012.
In July,
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