This growing urgency is driven by financial pressures, increased competition from payer-owned providers and retail clinics — such as CVS, Walgreens and Amazon’s One Medical — and the push toward value-based care models.
A Booming Market with High Stakes
The U.S. urgent care market, valued at $46.7 billion in 2024, is expected to grow rapidly as patients seek alternatives to emergency departments for non-life-threatening conditions. Health systems view urgent care centers as key assets for expanding patient access, reducing unnecessary ER visits and integrating patients into broader care networks. The rise of retail health giants, such as CVS and Walgreens, has further intensified the competition, making urgent care a critical battleground.
Rise in Urgent Care Acquisitions
Several major health systems have recently made significant investments in urgent care, reshaping the competitive landscape:
- Pittsburgh-based UPMC and national chain GoHealth Urgent Care recently formed a joint venture that will take over operations at an unspecified number of MedExpress centers in Pennsylvania, West Virginia and Virginia. The joint venture, launching in spring 2025, aims to integrate urgent care with other ambulatory services, expanding access for underserved communities. There are 48 MedExpress clinics in Pennsylvania, 21 in West Virginia and 15 in Virginia, according to the company’s website.
- Winston-Salem, N.C.-based Novant Health in November acquired UCI Medical Affiliates from Blue Cross and Blue Shield of South Carolina. The acquisition included 52 Doctors Care urgent care clinics and Progressive Physical Therapy clinics, which are staffed by nearly 200 physicians and advanced practice providers.
- Brentwood, Tenn.-based Ardent Health in January acquired 18 urgent care clinics from NextCare Urgent Care in New Mexico and Oklahoma. The acquisitions come shortly after Ardent bought nine urgent care centers in Topeka, Kansas and East Texas.
- Northwest Urgent Care, a Tucson, Ariz.,-based subsidiary of Community Health Systems, recently acquired 10 urgent care centers from Carbon Health, a primary and urgent care provider headquartered in San Francisco.
- Mercy Health-Toledo, part of Cincinnati-based Bon Secours Mercy Health, plans to launch a network of urgent care facilities through the acquisition of 10 facilities from Greater Midwest Urgent Cares. The transaction is expected to close April 1, pending regulatory approvals and closing conditions.
- Nashville, Tenn.-based HCA Healthcare has been ramping up its acquisition of urgent care facilities in recent years. The for-profit system operates more than 300 urgent care facilities nationwide and recently acquired 41 Texas urgent care centers from FastMed.
Strategic Drivers of Urgent Care Acquisitions
Health systems are acquiring urgent care centers to address three key industry challenges:
- Filling care gaps: Urgent care centers provide accessible, same-day care options, alleviating pressure on overburdened emergency rooms and primary care providers.
- Cost and revenue optimization: Urgent care centers operate at lower costs than hospital-based outpatient departments and serve as profitable entry points for specialty care referrals.
- Market competition: Acquiring urgent care centers reduces competition from independent operators and retail clinics while strengthening integrated care networks.
Potential Challenges and Considerations
Despite the strategic advantages, health system leaders must navigate various challenges when acquiring urgent care centers:
- Staffing and workforce constraints: Physician and provider shortages could limit the ability to scale services effectively.
- Reimbursement and regulatory risks: Payer negotiations, reimbursement cuts and evolving regulations may affect the financial sustainability of urgent care investments.
- Retail and payer disruption: Competition from major retailers and payer-backed primary care models (Optum, Amazon, etc.) could challenge health systems’ ability to control urgent care referrals.
Looking Ahead
The rush to acquire urgent care centers signals a broader industry shift toward outpatient and value-based care. As health systems expand their urgent care footprints, they must carefully evaluate market saturation, payer dynamics and brand integration strategies to ensure long-term success. Investing in urgent care is also seen as a core strategy to expand patient access, manage costs and maintain a competitive market presence.
