Mergers, affiliations and long-standing clinical partnerships have become increasingly fragile amid evolving financial pressures, shifting strategic priorities and growing regulatory scrutiny. Over the past four years, several high-profile hospital deals have been terminated — some before agreements were finalized, others after decades of collaboration.
Here are seven hospital partnerships and proposed deals that were called off or unwound so far this year:
1. Rolla, Mo.-based Phelps Health and Salem (Mo.) Memorial Hospital District have ended discussions about a potential affiliation after a year of exploratory talks. Salem Memorial Hospital, which has seen recent improvements in its operating margins, plans to remain independent for the time being.
2. Jacksonville, Fla.-based Baptist Health is terminating its long-standing pediatric services partnership with Gainesville, Fla.-based UF Health, marking the end of decades of clinical collaboration. In the first quarter of 2026, Nemours Children’s Health — also headquartered in Jacksonville — will take 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.”
3. In May, Gaithersburg, Md.-based Adventist HealthCare has abandoned its pursuit of acquiring Howard University Hospital, a 482-bed academic hospital in Washington, D.C. Adventist has managed the hospital since 2020 and plans to end its management services agreement by February 2026.
4. 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.
5. Corvallis, Ore.-based Samaritan Health Services and Stayton, Ore.-based Santiam Hospital and Clinics walk away from their proposed merger in May. Santiam had previously cited financial pressures as a motivator for the deal. The termination came without a detailed public explanation, though both parties indicated that the decision was mutual.
6. Portland-based Oregon Health & Science University and Legacy Health scrapped their merger plans just months after signing a definitive agreement. The two organizations said they had concluded the best path forward was to remain independent, citing a rapidly evolving operating environment. The proposed merger would have created one of the largest health systems in Oregon, with 12 hospitals and more than 32,000 employees.
7. Minneapolis-based Fairview Health Services in February declined a proposed $1 billion merger between Duluth, Minn.-based Essentia Health and Minneapolis-based University of Minnesota. Fairview cited a lack of demonstrable improvements for its employees and patients. While open to future partnerships, Fairview leaders said the proposed deal did not offer enough value. The decision leaves the future of Fairview’s relationship with the University of Minnesota — set to end in 2026 — up in the air.
