Ann Arbor-based University of Michigan Health is moving forward with plans to acquire Lansing-based Sparrow Health System, The Michigan Daily reported Jan. 8.
As part of the agreement, UM Health will use $800 million to invest in Sparrow over the next eight years, according to the publication. Once the deal is finalized, the health system will manage more than 200 medical facilities statewide.
UM Health does not expect the acquisition to lead to layoffs, according to the system's website.
Keith Dickey, Michigan Medicine chief strategy officer, said he expects more of the state's health systems to consolidate.
"The state of Michigan is probably going to end up consisting of just three, four or five large health systems, each of which is going to have its own almost statewide system of care," Mr. Dickey told The Michigan Daily. "We absolutely want to be one of those conveners of a statewide system of care."
UM expects the agreement to be finalized in the first half of 2023.