Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

21 called-off hospital deals

More than a dozen hospital mergers, acquisitions, joint ventures, affiliations and partnerships were unwound or called off throughout the past 21 months.

Below are 20 hospital deals called off since the start of 2022.

1. Baton Rouge, La.-based Franciscan Missionaries of Our Lady Health System and Ocean Springs, Miss.-based Singing River Health System mutually called off negotiations for a deal in which the former would acquire the latter. Talks between the organizations began in March and were halted in October. 

2. Albuquerque, N.M.-based Presbyterian Healthcare Services and West Des Moines, Iowa-based UnityPoint Health called off a planned $11 billion merger in October. The systems said they had reached an agreement after "significant planning and consideration." No official reason was given immediately for the decision. The merger would have created a cross-regional system with nearly 50 hospitals. 

3. Louisville, Ky.-based Norton Healthcare and Brentwood, Tenn.-based LifePoint ended a joint venture known as Regional Health Network of Kentucky and Southern Indiana in August. Norton Healthcare took on full ownership of two hospitals in Indiana upon the JV's unwinding. 

4. Centennial, Colo.-based Centura Health folded into CommonSpirit Health on Aug. 1, with the Chicago-based system now managing 20 Centura hospitals with plans to retire the Centura brand. CommonSpirit Health and Altamonte Springs, Fla.-based AdventHealth announced in February an end to their Centura Health joint venture, with AdventHealth now managing and operating five of the hospitals that were part of the Centura system.

5. Sioux Falls, S.D.-based Sanford Health and Minneapolis-based Fairview Health Services halted their merger efforts to form a 50-hospital system in July after rolling out the plan to combine in November 2022.

6. Tewksbury, Mass.-based Covenant Health called off its plan to acquire Day Kimball Healthcare, a health system based in Putnam, Conn., in March. The proposed deal faced opposition from a group of local residents concerned that Covenant, a Catholic health system, would limit services provided at independent Day Kimball, particularly reproductive services.

7. New Bern, N.C.-based CarolinaEast Health System is ending its partnership with Chapel Hill, N.C.-based UNC Health on March 31. The affiliation was formed in May 2021. CarolinaEast CEO Michael Smith said in a news release that it is no longer in the best interests of both health systems to maintain the affiliation agreement.

8. State University of New York Upstate Medical University and Crouse Health System abandoned plans to merge, which were proposed in April 2022 by the Syracuse, N.Y.-based systems. The FTC had voiced opposition to the deal, claiming it would leave Syracuse with just two hospital systems — Upstate and St. Joseph's Health — and give the combined entity a 67 percent share of commercially insured inpatient services in Onondaga County.

9. West Reading, Pa.-based Tower Health and Philadelphia-based Penn Medicine announced in February their decision to no longer pursue a strategic alliance, which was unveiled in July 2021. The systems said they will continue to work together in "areas of mutual interest." 

10. Worcester, Mass.-based UMass Memorial Health and Gardner, Mass.-based Heywood Healthcare called off affiliation plans in January. The systems had signed a nonbinding letter of intent in May to explore Heywood joining UMass Memorial Health, but UMass Memorial President and CEO Eric Dickson said "the difficult healthcare environment" makes it an inopportune time for the corporate affiliation.

11. Toledo, Ohio-based ProMedica announced in November its exit from a joint venture with Welltower for 147 skilled nursing assets. ProMedica had held a 15 percent interest in the JV. 

12. Elkins, W.Va.-based Davis Health System and Morgantown, W.Va.-based WVU Medicine ended an affiliation in August over Davis' choices of EHR vendor.

13. Tucson, Ariz.-based TMC Health ended its bid in early June to buy Santa Cruz Valley Regional Hospital in Green Valley, Ariz., which later closed.

14. Nashville, Tenn.-based HCA Healthcare and Dallas-based Steward Health Care System abandoned their proposed deal involving five Utah hospitals in June. The decision came 13 days after the Federal Trade Commission challenged the transaction.

15. Two New Jersey health systems — Saint Peter's Healthcare System and RWJBarnabas Health — terminated a definitive agreement to merge in June. Leadership of New Brunswick-based Saint Peter's Healthcare System and West Orange-based RWJ Barnabas Health agreed to call off the deal after the Federal Trade Commission filed a lawsuit to block the transaction.

16. Lebanon, N.H.-based Dartmouth Health and Manchester, N.H.-based GraniteOne Health canceled their proposed merger in May after the state Attorney General's Office said the move would violate the New Hampshire constitution.

17. In April, St. Louis-based Ascension and Altamonte Springs, Fla.-based AdventHealth unwound their joint venture Amita Health, which was formed in 2015 and provided healthcare services in the greater Chicago area with 15 acute-care hospitals, four specialty hospitals and immediate and outpatient care centers.

18. Edison, N.J.-based Hackensack Meridian Health and Englewood (N.J.) Health ended their merger plans in April. The Federal Trade Commission challenged the deal in 2020, arguing it would give Hackensack Meridian control of three of the six hospitals in Bergen County and raise healthcare costs.

19. The boards of Lifespan and Care New England — both based in Providence, R.I. — withdrew their merger application after the Federal Trade Commission made an announcement Feb. 17 it would file suit to block the deal.

20. Hoag Memorial Hospital Presbyterian in Newport Beach, Calif., and Providence, a Catholic health system based in Renton, Wash., announced in January that they would end their affiliation.

21. Trinity Health Mid-Atlantic abandoned its plan in January to buy West Reading, Pa.-based Tower Health's Chestnut Hill Hospital in Philadelphia.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars