Mergers and Acquisitions

The South Dakota health system is adding Lewis Drug, a family-owned chain of drug stores. Sanford CEO Bill Gassen says the aim is to improve access for patients in the upper Midwest.

Baptist Memorial Health Care has reached an agreement to buy OCH Regional Medical Center. The system plans to invest nearly $97 million in improvements.

Health systems are eyeing the addition of outpatient facilities, such as ambulatory surgery centers and urgent cares, to enhance patient access.

There weren’t many transactions in the first half of the year, but industry analysts expect health systems to pursue more deals in the coming months.

University Health has reached an agreement to buy the former CHRISTUS Santa Rosa Hospital – Medical Center in a $71 million deal.

UCSD Health and Palomar are discussing the formation of a Joint Powers Authority that would oversee Palomar’s operations.

SolutionHealth, formed by the merger of Elliot Health System and Southern New Hampshire Health, have filed papers to go in different directions.

The two systems have signed a non-binding letter to weigh ‘co-founding’ an organization that would serve patients in New Jersey, Delaware, Pennsylvania and Maryland.

The number of mergers and acquisitions is well below the transactions seen a year ago.

Deals picked up a bit in the second quarter, Kaufman Hall says. But the number of transactions in the first six months of the year trails the number of mergers seen in the first half of 2024.

The Indiana-based system has completed a deal to acquire four Ascension hospitals in Michigan, along with a host of clinics.

Rich Liekweg has led the system for years and helped it become one of the nation’s largest academic health systems. Nick Barto, BJC’s president, will take over in October.

The health system has finalized the acquisition of Merit Health Madison, which is now dubbed UMMC Madison. Officials said it will help with scheduling surgeries and offer more care closer to home.

TriHealth has announced an agreement to add Clinton Memorial Hospital in Wilmington, Ohio, which would become the sixth acute care hospital in the system.

Under the deal, UnityPoint would add Siouxland Medical Center into its footprint. The hospital has more than 400 beds and is the only level II trauma center in western Iowa.

Union Health and Terre Haute Regional Hospital are hoping to come together. Federal regulators oppose the deal, but HCA Healthcare says Terre Haute could close if the merger is denied.

The merged organization includes 28 hospitals and more than 100,000 employees. The systems have been working on the merger for more than a year.

Oregon Health & Science University and Legacy Health are dropping their plans to come together. A state-appointed review board expressed concerns about the deal.

Prospect Medical Holdings is shutting down Crozer Health, which includes the medical center and Taylor Hospital. Taylor shut down last week, and Crozer-Chester closed Friday.

The Tennessee-based system has been acquiring more urgent care facilities, and is focusing on mid-size urban markets with room to grow.

Baptist Memorial Health Care in Memphis and Arkansas Methodist Medical Center have signed a letter of intent for a merger. Baptist Memorial has acquired other hospitals in recent years.

After earlier expectations of an uptick in deals this year, health systems appear to be more cautious in an unpredictable economic climate.

The systems have secured their final regulatory approval and expect to close the deal shortly. Northwell will acquire Nuvance, which has struggled financially.

Only a handful of deals took place in the first three months of 2025, according to a Kaufman Hall analysis. Most involved a provider in financial distress.

Beacon Health System has reached an agreement to acquire Ascension’s hospitals in southwest Michigan. Ascension has divested other facilities recently.