After deliberating since last spring, the Detroit Medical Center (DMC)/School of Medicine and Henry Ford Health System have decided not to pursue a merger.

Instead, the two systems will focus on joint opportunities and additional collaborative programs.

"Both institutions are committed to serving the community," said Robert Sokol, dean of the School of Medicine. "These discussions have opened our eyes to important collaborative possibilities, which will allow us to offer far more benefits to the community than a merger would have."

Sokol said the decision also allows the institutions to focus on their own priorities and initiatives while working together.

The organizations identified several key areas in which to work jointly, including:

* Ensuring access to community-based health care for Detroit residents;

* A joint venture medical laboratory;

* Research related to improving health status and services in Detroit;

* Coordinated graduate medical education planning; and

* Consideration of joint programming in selected clinical disciplines.

The best interests of the community, patient care and medical education remained foremost on everyone's minds during the discussions, Sokol said.

"By working together to achieve these goals, we can only strengthen the quality, access and efficiency we strive for - and deliver - today," he said.

Several factors led to the decision not to merge operations.

First, both systems are in the midst of implementing significant new initiatives. DMC continues to restructure its hospitals. Inpatient services of the Rehabilitation Institute of Michigan will be relocated into an existing wing of Harper Hospital, and Grace Hospital beds will be consolidated on Sinai Hospital's campus, which recently was acquired by DMC.

In addition, 350 beds and services will be moved from Hutzel Hospital to DMC's Central Campus facilities, and 19 ambulatory sites have been acquired from Michigan Health Care Corp.

Meanwhile, Henry Ford Health System is in the final stages of discussing a joint venture to align Bon Secours Hospital with Cottage Hospital and continues the process of integrating the Horizon Health System into the organization. In addition to Henry Ford's joint venture with St. Joseph Mercy Hospital of Macomb, a new joint venture with St. Joseph Mercy-Oakland recently was announced.

Both DMC/WSU and Henry Ford also are dealing with major cutbacks in Medicaid and Medicare. As academic institutions and major providers of care for the poor and elderly, they are directly affected by these cuts.