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7 hospital mergers called off in past year

Two health systems called off a $6.1 billion merger deal in late May that would have created a 12-hospital network. That failed transaction represents one of several hospitals mergers that, at some point in their lifetime, were called off in the past year. 

Below are seven hospital mergers called off in the past year, beginning with the most recent:

1. California hospital ends merger talks with Dignity Health
County officials overseeing Ventura (Calif.) County Medical Center ended merger talks with San Francisco-based Dignity Health in July after leaders from both parties deemed an affiliation too risky. County Health Care Agency Director Bill Foley said Dignity officials considered it a risk to take on public hospitals, while county managers were concerned they would give up control but still face risk for buildings and finances. County officials were also concerned VCMC would lose its designation as a public hospital under either a lease or a contract with Dignity, which would put roughly $150 million in annual funding at risk. 

2. Beaumont, Summa Health cancel $6.1B merger plan  
Southfield, Mich.-based Beaumont Health called off a proposed merger with Akron, Ohio-based Summa Health in late May. They ended talks about five months after signing a definitive agreement, under which Summa Health would have become a subsidiary of Beaumont. The proposed deal, which had already received all necessary regulatory approvals, would have created a nonprofit system with 12 hospitals and $6.1 billion in annual revenue. 

3. 4 Chicago hospitals call off $1.1B merger plan  
Chicago-based Advocate Trinity Hospital, Mercy Hospital and Medical Center, South Shore Hospital and St. Bernard Hospital signed a letter of intent in January to combine into a single health system and build at least one new hospital and several community health centers. The hospitals called off the deal in late May after government funding for the $1.1 billion plan fell through. 

4. Geisinger, AtlantiCare sever merger
Danville, Pa.-based Geisinger and Atlantic City, N.J.-based AtlantiCare severed their merger in March, about five years after the two systems combined. The separation of the two organizations is expected to take up to 18 months, the two organizations said in March. 

5. Wisconsin health systems call off merger
La Crosse, Wis.-based Gundersen Health System and Marshfield (Wis.) Clinic Health System abandoned plans in December to merge into a 13-hospital rural healthcare network. The two systems said they "mutually decided to remain independent" after several months of productive and collaborative discussions.

6. Sanford Health, UnityPoint nix $11B merger
Sioux Falls, S.D.-based Sanford Health and Des Moines, Iowa-based UnityPoint Health called off plans in November to merge into an $11 billion, 76-hospital system. The two systems called off the merger roughly five months after signing a letter of intent to combine.

7. Lifespan, Care New England end merger talks
Care New England Health System announced in July 2019 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, antitrust considerations, organizational stability and implementation risks.

More articles on healthcare industry transactions:
CHS' sale of Texas hospital delayed
Hospital integration not linked with better care, payment reforms, study finds
Trinity Health tried to sell struggling Chicago hospital for 18 months, papers show

 

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