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13 Recent Hospital Mergers & Acquisitions

The following hospital mergers and acquisitions took place within the past two weeks, beginning with the most recent.

1. Kentucky Gov. Steve Beshear Rejects 3-System Merger
Kentucky Gov. Steve Beshear has rejected a proposed three-system merger between public University Hospital in Louisville with Jewish Hospital & St. Mary's HealthCare in Louisville and St. Joseph Health System in Lexington, which would have combined a public safety-net hospital with a Catholic healthcare company to create a statewide system.

2. CHS Finalizes Acquisition of Moses Taylor Health in Pennsylvania
Franklin, Tenn.-based Community Health Systems has acquired Moses Taylor Health Care in Scranton, Pa. The acquisition went into effect Jan. 1. Moses Taylor includes the 217-bed Moses Taylor Hospital in Scranton and 25-bed Mid-Valley Hospital in Peckville, Pa.

3. Beth Israel Deaconess in Boston Strengthens Ties to Milton Hospital
Beth Israel Deaconess Medical Center in Boston has taken the 81-bed Milton (Mass.) Hospital under its umbrella. The hospital will be renamed Beth Israel Deaconess Hospital-Milton to reflect the new relationship. The agreement went into effect Jan. 1 and reflects a formalized collaborative relationship — not an acquisition.

4. Sanford Health, Medcenter One Not Merging But Still Negotiating
Although Medcenter One in Bismarck, N.D., has not agreed to merge with Sanford Health, based in Fargo, N.D., and Sioux Falls, S.D., officials have confirmed the two systems are discussing strategies to work together more closely.

5. Merger Talks End Between CHS, Nevada's Saint Mary's Regional
Merger talks between Saint Mary's Regional Medical Center in Reno, Nev., and Franklin, Tenn.-based Community Health Systems have fallen through. Had the sale been finalized, Saint Mary's Regional would have become a for-profit hospital. The 380-bed Saint Mary's Regional is continuing its search for a buyer.

6. Alexian Brothers Health in Illinois Merges With Ascension Health
St. Louis-based Ascension Health has reached an agreement to merge with Alexian Brothers Health System, which includes five hospitals and is based in Arlington Heights, Ill. The transaction was approved Dec. 6 by the Illinois Health Facilities and Services Review Board, and the organizations signed a merger agreement last week. The merger will go into effect Jan. 1.

7. Trinity Health to Acquire Chicago's Mercy Hospital for $150M Over 5 Years
Novi, Mich.-based Trinity Health has agreed to invest up to $150 million in Mercy Hospital and Medical Center in Chicago over five years in a deal to acquire the facility. Trinity indicated on its change of ownership application that it plans to own the hospital for at least three years. The Illinois Health Facilities and Services Review Board still needs to approve the sale.

8. California's Victor Valley Defies Attorney General, Moves Forward With Prime
Victory Valley (Calif.) Community Hospital is ignoring Attorney General Kamala Harris' objections to the hospital's proposed sale to Ontario, Calif.-based Prime Healthcare and continues to move forward with the controversial system. The hospital has signed two agreements with Prime. One is for a $6 million line of credit — a deal Ms. Harris says will give Prime control of Victor Valley. Details of the second agreement were not included in the news report. In a separate strategy, Victor Valley also requested a judge overturn her veto on the sale.

9. Weslaco, Texas City Council Opposes Sale of Knapp Med Center to UHS
The Weslaco (Texas) City Council has approved a measure to oppose the sale of not-for-profit Knapp Medical Center in Weslaco to for-profit Universal Health Services. The council also asked the city attorney to enforce a 1987 covenant that required the property transferred to Knapp be used exclusively for a not-for-profit hospital. The council's resolution opposes the deal based on current information available, but could change based on new information.

10. Christ Hospital Rejects $91.6M Bid From NJ's Hudson Hospital Holdco
Christ Hospital in Jersey City, N.J., has rejected a $91.6 million offer from Hudson Hospital Holdco. The sale of Christ Hospital to Ontario, Calif.-based Prime Healthcare is currently under regulatory review, but Hudson Hospital Holdco sent a letter on Dec. 23 to Christ Hospital, outlining a $91.6 million bid for the financially troubled hospital. The hospital rejected the offer yesterday and will continue with its pending sale to Prime, which it finds to be "in the best interests of the hospital and the community," according to a Christ spokesperson cited in a news report.

11. Ashland Community Hospital in Oregon Awaits Partnership Proposals
Ashland (Ore.) Community Hospital has sent information packets to potential hospital partners and expects to receive proposals before Jan. 11. A hospital official has said Ashland hopes to partner by May or June. Names of organizations to which Ashland sent information were not disclosed in the news report.

12. Steward, Landmark Get Deadline Extension to Submit Merger Application
Boston-based Steward Health Care Systems and Landmark Medical Center in Woonsocket, R.I., have received an extension of two weeks to submit their complete merger application. The complete application is due Jan. 11 and will be reviewed by the Department of Health and Attorney General's office.

13. Ohio's Fremont Memorial, ProMedica to Affiliate
The 186-bed Fremont (Ohio) Memorial Hospital is pursuing an affiliation with ProMedica, a non-profit healthcare organization based in Toledo, Ohio. The hospital board has signed a letter of intent to pursue the affiliation, and due diligence is expected to take 90 days.


Related Articles on Hospital M&A:

Not a Merger, Not an Acquisition: When and Why Strategic Partnerships Make Sense
6 Overlooked Hospital M&A Concepts and Trends
Healthcare Private Equity: Opportunities, Outlook for 2012


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