January 29, 2023

Aerial view of the University of Michigan Hospital.

UM Health acquires Sparrow Health System in Lansing

University of Michigan Health acquires Sparrow Health System in Lansing, Central Michigan’s largest hospital system with six campuses in Charlotte, Ionia, St. John’s, Carson City and Lansing, along with 500 primary care providers and specialists.

The deal was approved Thursday by the University of Michigan Board of Regents. Sparrow Health System’s board of directors signed the agreement in late November.

Pending regulatory approvals, the acquisition is expected to be completed in the first half of 2023.

more:The newly combined Beaumont-Spectrum Health System was renamed Corewell Health

more:The Beaumont-Spectrum merger takes it one step further with a formal integration agreement

UM Health is spending $800 million

“This agreement strengthens UM Health’s ability to provide quality health care in communities outside Southeast Michigan, expanding our mission as a statewide referral site for the most critically ill,” Paul Brown, Chairman of the Board of Regents, said in a statement.

As part of the arrangement, Ann Arbor-based UM Health will spend $800 million over the next eight years on Sparrow’s hospital campuses, financing facility projects, operations, and other “strategic investments.”