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6 hospital mergers called off in past year

Care New England Health System, a three-hospital system based in Providence, R.I., withdrew from merger talks with two other organizations in July. That failed deal represents one of several hospital mergers that, at some point in their lifetime, were called off in the past year.

Below are six hospital mergers called off since September 2018, beginning with the most recent:

1. Lifespan, Care New England end merger talks
Care New England Health System announced July 16 that its board voted to withdraw from merger talks with Lifespan and Brown University, both in Providence, R.I. Officials said several factors contributed to the decision, including capital requirements and financial stability of the combined system, community need, anti-trust considerations, organizational stability and implementation risks.

2. Illinois hospitals call off merger
Maywood, Ill.-based Loyola Medicine and Palos Health in Palos Heights, Ill., called off merger discussions in May after signing a nonbinding letter of intent in January. Loyola Medicine and Palos Health didn't say why they decided to end talks, but they did note that existing partnerships between the organizations will continue.

3. Centura Health, Community Hospital call off merger talks
Community Hospital in Grand Junction, Colo., and Centura Health in Centennial, Colo., discontinued merger discussions in March, about four months after signing a letter of intent to merge. Although the organizations ended formal merger discussions, they remain open to exploring ways to partner in the future.

4. Illinois hospitals end merger talks
Iroquois Memorial Hospital in Watseka, Ill., and Riverside Healthcare in Kankakee, Ill., ended merger discussions in February. However, officials said they would continue to collaborate on ways to best serve patients in Iroquois County.

5. Baylor Scott & White, Memorial Hermann end merger talks
Baylor Scott & White Health and Memorial Hermann Health System decided to discontinue merger discussions in February, roughly four months after signing a letter of intent to combine their organizations. Baylor Scott & White and Memorial Hermann did not cite a specific reason for ending merger talks. "Ultimately, we have concluded that as strong, successful organizations, we are capable of achieving our visions for the future without merging at this time," the systems said in a joint statement.

6. Maryland hospitals call off merger negotiations
Baltimore-based LifeBridge Health and Elkton, Md.-based Union Hospital of Cecil County ended merger negotiations in December 2018. Uncertainty about Union Hospital's future revenue under Maryland's hospital reimbursement system was the primary reason merger talks ended.

More articles on healthcare industry transactions:

Hospital M&A update: 10 latest deals
AHA says hospital mergers are good — economists say otherwise
CHS sells 2 Florida hospitals

 

 

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