Mergers and Acquisitions

Most investors said they see more dealmaking taking place in the coming year, according to a new KPMG report. Inflation and rising interest rates pose challenges, but the difficult environment could spur more M&A activity.

Cooper, based in Camden, N.J., is the much larger system, and Cape Regional said the market is becoming tougher for smaller systems. Analysts expect more smaller systems will be seeking partners.

In an interview with Chief Healthcare Executive, he discussed one of healthcare’s biggest deals, helping doctors, and solving problems for hospitals.

It’s being called the biggest acquisition in the healthcare sector of 2022. Amgen touted the chance to expand its portfolio to include more drugs treating rare diseases.

The systems say they have now formally merged to create Advocate Health, forming one of America’s largest hospital systems. Analysts have said it could pave the way for more consolidations.

The two systems are creating a new organization with 11 hospitals serving patients in Wisconsin, Michigan, Minnesota and Iowa.

Excela Health and Butler Health System reached an agreement to create an organization with five hospitals. They hope to gain regulatory approval by the year’s end.

Russ Thomas, CEO of Availity, and Mary Lantin, president and COO of Diameter, talked with Chief Healthcare Executive about the deal, and how the better use of data can reduce waste and improve patient care.

It’s another sign of the evolving healthcare market. Walgreens Boots Alliance CEO Roz Brewer called it ‘transformational for our U.S. Healthcare segment.’

The deal includes the operation of three hospitals and a host of clinics in central Illinois. Officials hope to finalize the transaction by April 2023.

The number of transactions this year is on the lower side, but they are bigger deals. And three health system deals were announced within a week.

If they agree to come together, a merger would produce a system with 25 hospitals and more than 26,000 employees. The deal comes during a fairly slow period for hospital consolidations.

The Michigan organization includes 22 hospitals and more than 300 outpatient facilities. The system says it aims to provide affordable and equitable care.

LCMC is also partnering with Tulane University on efforts to expand academic medicine. The deal would leave two main players in the New Orleans hospital market.

The deal, which requires regulatory approval, includes three hospitals. The systems would move to non-profit status.

Trinity Health Of New England selects a chief executive, a Texas health system names a new president in a history-making appointment, and others take new roles.

Warner Thomas has led Ochsner for 10 years. The Louisiana system has named Pete November as his successor.

Health systems are dealing with financial losses and staff shortages. Kristin Pothier of KPMG spoke with Chief Healthcare Executive about managing during economic uncertainty.

A state board in Illinois initially voted against the deal, but then said it would give the systems more time to submit information. The proposed merger would create an organization with $27 billion in annual revenue.

Trinity acquires MercyOne’s 16 medical centers and hundreds of sites of care. Not many hospital deals are happening, but analysts expect the pace to pick up in the near future.

The two West Virginia organizations announced their merger plans several months ago. Charleston and Mon Health facilities will retain their identities.

CVS is aiming to acquire Signify, and its network of doctors caring for patients at home, in an $8 billion deal. Experts say it shows the home could be the future of healthcare.

Several planned health system transactions have fallen through this year. Here’s a look at why some deals didn’t come together.

In other news, University of Pennsylvania Health System appoints a new chief operating officer, a key HCA Healthcare leader is retiring and more.

ChristianaCare and Prospect Medical Holdings, owners of Crozer, announced the talks ended without an agreement.