West Virginia announced plans to sell four state-run hospitals, and two proposed hospital acquisitions on the West Coast were called off.
Here are three healthcare M&A developments Becker’s reported on during the week of Aug. 11:
1. Flint, Mich.-based Insight Health System is stepping away from negotiations on a proposed lease-to-purchase agreement with Hollister, Calif.-based Hazel Hawkins Memorial Hospital, citing uncertainty around the recently signed One Big Beautiful Bill Act.
After months of discussions, Insight decided that “due to the shifting financial landscape it was prudent for them to withdraw from the proposed transaction.”
The San Benito Health Care District, the board overseeing the hospital, said it will now “concentrate on strengthening its financial position while developing new strategies to ensure its long-term viability.”
2. West Virginia plans to sell four of its long-term care facilities to Marx Development Group, a privately held, full-service real estate development firm based in Fresh Meadows, N.Y., West Virginia.
Gov. Patrick Morrisey said Aug. 12 that the firm has agreed to purchase Hopemont Hospital in Terra Alta, Jackie Withrow Hospital in Beckley, John Manchin Sr. Health Care Center in Fairmont and Lakin Hospital in West Columbia for $60 million.
“The sale of these facilities would produce a significant amount of revenue for the state, spur investment in the renovation and expansion of these facilities, and, I think, increase the level of quality of healthcare that’s provided to patients,” Mr. Morrisey said.
3. Brentwood, Tenn.-based Quorum Health withdrew from a proposed deal to operate the financially struggling Bay Area Hospital in Coos Bay, Ore.
Quorum, a for-profit hospital management company, signed a letter of intent to acquire the hospital in December. The proposed deal prompted opposition from the union representing hospital employees as well as a number of community members, who voiced concerns about out-of-state ownership.
Quorum CEO Chris Harrison said in a statement that the company “felt that it would be appropriate for both sides to step back from the LOI process to allow time for Bay Area to focus on its operations to strengthen access to healthcare in the region.”
