Hospital mergers in 2026: Five takeaways

Hospital mergers are on the rise in 2026.

In the first half of 2026, there have been 40 hospital mergers and acquisitions, according to Kaufman Hall, a healthcare consulting firm. Here are some takeaways from the hospital mergers so far this year.

Major rebound: In 2025, there were only 46 hospital mergers all year, marking the smallest number of deals in 15 years. In half of 2026, there have already been 40 transactions announced.

More strategic. Hospitals are being more strategic, analysts say. Health systems put the brakes on deal-making last year as they sought to get a handle of President Trump’s policies and agenda. Now, hospitals know enough to move forward. By the second half of 2025, conversations started picking back up behind the scenes. Now, in 2026, those conversations are turning into public announcements.

Beyond beds. Some hospitals may be looking at inpatient capacity, but perhaps more importantly, they are also looking to add more outpatient services, including ambulatory surgery centers.

Wary of turnarounds. Even some larger hospitals are leery of acquiring hospitals and smaller systems in serious financial trouble. Analysts say deals are more likely if hospitals are offering some good capabilities in some areas, or regions with appealing demographics.

Optimism persists. Analysts expect to see more hospital deals in the coming months, as organizations look to bolster services or partner in areas where they could use some help.

Some noteworthy deals

Quorum Health is planning to move from for-profit model to a nonprofit health system. QKA Health Corporation, doing business as Healthside Partners, is planning to acquire Quorum, which operates 11 hospitals in nine states.

Atrium Health, which is part of Advocate Health, is planning to join forces with WakeMed. Atrium has pledged $2 billion in investments in Wake County and vowed to create more than 3,000 jobs and expand care for 1 million North Carolina residents, but the deal has met with some criticism.

Sutter Health and Allina Health announced their plans in March to come together and form a 39-hospital system. In May, the two systems said that they have reached a definitive agreement on their plans to come together. Sutter is based in Sacramento, California, while Allina serves Minnesota and part of Wisconsin. Sutter Health has pledged to invest $2 billion in Allina’s market.

Sanford Health, which is based in South Dakota, and operates 58 hospitals across the upper Midwest, is looking to join forces with North Memorial Health, which operates two hospitals in Minnesota.

Lee Health, a Florida-based hospital system, has reached an agreement to acquire

Florida Heart Associates, a cardiology practice serving southwest Florida.