By Erica McClain The News-Herald

Oakwood Healthcare, Beamount Health System and Botsford Health Care have agreed to form a new $3.8 billion heath system spanning Wayne, Oakland and Macomb counties.

The three health care systems CEOs began discussions about a merger in late 2013 and yesterday signed a letter of intent to begin the due diligence process, which is projected to take 90 days.

Botsford CEO Paul LaCasse said that while the Affordable Care Act that compels health care systems to reduce costs and inefficiencies through mergers and alliances, it was not the driving factor for the three organizations.

We saw the cultural fit and recognized that we could improve safety and reduce cost structure those were the driving factors, LaCasse said.

The three health care systems span Wayne, Oakland and Macomb counties with Oakwood headquartered in Dearborn, Botsford in Farmington Hills and Beaumont in Royal Oak.

The geography we have is not overlapping, its complementary, LaCasse said. Our physician practice models are very similar, and we have a very strong commitment to private practice we want to perpetuate.

The cultural fit is fabulous. We know each other weve known (each other) for a long time and have a mutual respect for one another.

There are no plans to close any hospitals, according to Oakwood CEO Brian Connolly.

However, an inventory will be taken on each facilitys age and locations to review facilities and maintenance costs, Beaumont CEO Gene Michalski said.

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Oakwood Healthcare, Beaumont Health System and Botsford Health Care begin $2.8 billion alliance