Several hospital and health system partnerships, affiliations and proposed transactions have been called off or unwound this year, reflecting shifting strategic priorities, financial considerations and evolving market dynamics.
From merger discussions that ended after years of negotiations to the dissolution of longstanding clinical collaborations and joint ventures, health systems across the country are reevaluating plans as they navigate a rapidly changing operating environment.
Here are seven hospital and health system partnerships or proposed deals that were called off or unwound so far this year:
1. Buffalo, N.Y.-based Kaleida Health and Erie, Pa.-based Lake Erie College of Osteopathic Medicine ended talks over a proposed acquisition of Kaleida’s former Bradford (Pa.) Regional Medical Center campus. LECOM began exploring a potential acquisition in February after Kaleida filed plans to close inpatient, emergency and long-term care services at the campus because of financial pressures. The discussions prompted Kaleida to temporarily pause its closure plans, but LECOM’s board voted Sept. 8 not to move forward with the transaction. Kaleida was notified Sept. 9, ending months of negotiations. With no deal in place, Kaleida is moving forward with plans to close The Pavilion, the campus’ long-term care facility, on or before Dec. 1. The facility serves 45 residents and employs 80 people.
2. Fairfield Medical Center in Lancaster, Ohio, was acquired by Chillicothe, Ohio-based Adena Health System on Sept. 1. The two parties signed a nonbinding letter of intent June 1 to explore a formal partnership after Columbus-based OhioHealth’s planned acquisition of Fairfield fell through. OhioHealth initially shared plans to acquire Fairfield in November 2025 after the two organizations signed a nonbinding agreement in fall 2024. After Adena completed the acquisition, the Federal Trade Commission said it helped steer Fairfield Medical toward the system. The FTC said a previous staff investigation into OhioHealth’s proposed acquisition of the hospital highlighted “serious competitive concerns,” including the risk of raising costs and reducing care quality for Ohioans. The investigation, which coordinated closely with the Ohio Attorney General’s Office, also raised concerns about Fairfield Medical’s thoroughness in identifying potential buyers. FTC staff encouraged the hospital to find alternative buyers in light of those concerns.
3. Schenectady, N.Y.-based Ellis Medicine and Albany, N.Y.-based St. Peter’s Health Partners — part of Livonia, Mich.-based Trinity Health — ended talks to merge and will conclude their Management Services Agreement and Professional Services Agreement, effective Aug. 16. The news comes nearly six years after the organizations signed a letter of intent to explore a combination. The merger effort was paused in 2021 as Ellis Medicine worked through financial challenges related to the COVID-19 pandemic.
4. Chicago-based CommonSpirit is insourcing revenue cycle operations and exiting its ownership stake in Conifer Health Solutions. Dallas-based Tenet Healthcare will regain full control of Conifer, its revenue cycle management subsidiary. Under the agreement, CommonSpirit will pay about $1.9 billion to Tenet over the next three years, while Conifer will pay CommonSpirit roughly $540 million to redeem its 23.8% equity stake, effective Jan. 1. Conifer is continuing to provide revenue cycle services to CommonSpirit through the end of 2026.
5. Valley Medical Center, a 321-bed acute care facility in Renton, Wash., will end its strategic affiliation with Seattle-based UW Medicine on Dec. 31, 2026. The two organizations partnered in 2011, but Valley Medical’s board voted unanimously to dissolve the relationship, citing shifting needs and the evolving healthcare landscape. The hospital said it is exploring other partnerships.
6. Bethlehem, Pa.-based St. Luke’s University Health Network is ending its joint venture with Danville, Pa.-based Geisinger and will assume full ownership of their jointly owned hospital. The health systems partnered in 2019 to create Geisinger St. Luke’s Hospital in Orwigsburg, Pa. St. Luke’s plans to buy Geisinger’s interest in the joint venture. The transition is expected to take effect this year, pending regulatory approval, according to the Republican Herald.
7. Jacksonville, Fla.-based Baptist Health ended its long-standing pediatric services partnership with Gainesville, Fla.-based UF Health, marking the end of decades of clinical collaboration. In the first quarter, Nemours Children’s Health — also headquartered in Jacksonville — took over pediatric care at Baptist’s Wolfson Children’s Hospital. UF Health told the Jacksonville Business Journal it was “surprised and disheartened” to learn that Baptist had “unilaterally decided to end its decades-long clinical collaboration.”
