Beacon Health Buying Ascension’s Health System in Southwest Michigan

Beacon Health System, a nonprofit healthcare system in northern Indiana and southern Michigan, is planning to acquire the Ascension healthcare system in southwest Michigan. Once the transaction is complete, Beacon Health System will own Ascension’s network of four hospitals, 35 outpatient clinics and an ambulatory surgery center.

Ascension is one of the nation’s largest nonprofit and Catholic health systems. Across 16 states and the District of Columbia, Ascension’s network encompasses approximately 106,000 employees, 26,000 aligned providers, 105 wholly owned or consolidated hospitals, and 34 senior living facilities. Additionally, through strategic partnerships, Ascension holds an ownership interest in 26 other hospitals.


In October 2023, Detroit-based Henry Ford Health and Ascension Michigan signed an agreement to enter into a joint venture to merge eight Ascension southeast Michigan hospitals and Genesys healthcare facilities and assets with Henry Ford’s. 

In March 2024, Ascension signed an agreement to sell three northern Michigan hospitals to MyMichigan Health. 

The hospitals being sold to Beacon for an undisclosed price 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 employees, including 261 providers.

Beacon has more than 8,100 employees and 1,000 physicians. Its hospitals include Beacon Children’s Hospital, Beacon Granger Hospital, Community Hospital of Bremen, Elkhart General Hospital, Memorial Epworth Center, Memorial Hospital of South Bend and Three Rivers Health.

“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, CEO of Beacon Health System, in a statement. “This acquisition will create a bright future for these communities by ensuring access to quality healthcare services for generations.”

“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, 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.”

The transaction is expected to close this summer, subject to regulatory approvals.