Beaumont to become key managed care insurer after Summa deal

If Beaumont Health closes its proposed acquisition of Summa Health, Beaumont could become a major player in Michigan's hospital-owned managed care business, according to Crain's Detroit Business.

Executives at Southfield, Mich.-based Beaumont have thought about how buying a managed care organization could help them strike direct contracts with employers and physicians, as well as sell insurance to patients, according to the report.

Akron, Ohio-based Summa Health's health insurance arm, SummaCare, covers 46,000 members, according to Crain's Detroit Business.

"Summa Health has competencies we don't have with Beaumont Health," Beaumont CEO John Fox told Crain's Detroit Business, mentioning the health insurance arm SummaCare. "It has a [health insurance] claims shop to process claims. It is something we can use when employers" look to contract with the health system.

Some of Beaumont's rivals in Michigan — Henry Ford Health System in Detroit, Spectrum Health in Grand Rapids, Sparrow Health System in Lansing and McLaren Health Care in Grand Blanc — all own insurance companies.

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