Summer brought no slowdown in M&A in the health system world, with deals ranging from multibillion-dollar system combinations to targeted regional expansions.
Below are the seven most notable hospital M&A deals that were announced or completed this summer.
—WVU Medicine signed an agreement in June to acquire Independence Health System. WVU currently owns 25 hospitals, and adding Independence’s five will bring the combined system to 30 hospitals total, with more than $8 billion in annual operating revenue once complete. Under the deal, WVU will invest $800 million in western Pennsylvania-based Independence, which has about 7,000 employees and 1,000 physicians.
—In June, Community Health Systems completed the sale of its four-hospital Northwest Health subsidiary to Freeman Health System for $112 million. The deal doubled Missouri-based Freeman’s hospital count and marked its first expansion into Arkansas, adding roughly 2,200 employees and 1,500 physicians across the four hospitals.
—Hackensack Meridian Health signed a letter of intent in June to explore acquiring Hunterdon Health in central New Jersey. Hackensack Meridian currently operates 18 hospitals with about 40,000 employees. Hunterdon’s network includes its flagship hospital and more than 30 medical practices.
—Lifepoint Health completed its acquisition of eight community hospitals from ScionHealth in June. The hospitals span six states — Idaho, Mississippi, Tennessee, Texas, West Virginia and Wisconsin. ScionHealth said the sale lets it concentrate its operations on specialty and long-term acute care hospital services.
—In July, Erlanger Health System in Chattanooga, Tennessee signed a non-binding letter of intent to join South-Carolina-based Prisma Health. The deal seeks to create a 27-hospital nonprofit system with $9 billion in operating revenue across Tennessee and North Carolina. As part of the pending agreement, Prisma would invest $2 billion to bolster care in the Chattanooga area, including protecting Erlanger’s Level 1 trauma center and other safety net programs.
—Allegheny Health Network finalized an affiliation agreement in July to acquire Heritage Valley Health System in Pennsylvania. The deal brings AHN’s footprint to 16 hospitals, adding Heritage Valley’s two hospitals, 36 physician offices, seven outpatient facilities and about 3,000 employees.
—Sanford Health and North Memorial Health finalized their merger this week. The deal formed a combined nonprofit system with 61,000 employees serving about 2.5 million patients across the Upper Midwest. As part of the deal, Sanford is committing to $600 million in investments in North Memorial — $500 million to expand Maple Grove Hospital and $100 million to modernize Robbinsdale Hospital — while also preserving key services like its Level I trauma center.
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