The University of Michigan Health's board of regents on Dec. 8 approved a proposed agreement that would see it acquire Lansing, Mich.-based Sparrow Health System to become a $7 billion-health system with more than 200 sites of care.
Ann Arbor-based University of Michigan Health said it will inject $800 million into Sparrow, a six-hospital system, through facility projects, operations and strategic investments over eight years.
The investment will be spread across several improvement and growth initiatives based on community need, such as renovations to Sparrow Hospital's neonatal intensive care unit and geographic growth across the communities the health system serves.
"This will also strengthen our key service lines including cardiology, oncology, orthopedics and neuroscience," Joseph Ruth, Sparrow's executive vice president and COO, said in a Dec. 8 news release. "This infusion of investment into Sparrow services will provide job growth and career development opportunities that would not otherwise be available to our caregivers."
The acquisition will also build on University of Michigan Health's minority investment in Sparrow's health plan, Physicians Health Plan, which provides coverage to more than 70,000 members and 300 employers in Michigan and includes a Medicare Advantage plan, according to the health system.
Sparrow has more than 115 sites of care and almost 500 primary care providers and specialists serving patients across the region.
Sparrow's board approved the agreement on Nov. 28. The acquisition is expected to be completed in the first half of 2023, pending final regulatory approvals.