From two Oklahoma hospitals signing an agreement to form a new health system to a possible new academic medical center emerging in Florida, here are six hospital M&A moves Becker’s reported during the week of Sept. 15:
1. Hartford (Conn.) HealthCare has entered into an agreement to acquire Manchester Memorial Hospital and Rockville General Hospital in Vernon, Conn., from Prospect Medical Properties.
The system plans to purchase the two hospitals for about $86 million as part of Prospect Medical’s bankruptcy proceedings. Hartford HealthCare was named the stalking horse bidder — the first buyer selected to set the floor price in a bankruptcy auction — for the hospitals.
2. Valhalla, N.Y.-based Westchester Medical Center Health Network and Cincinnati-based Bon Secours Mercy Health agreed to end their joint venture partnership involving Bon Secours Charity Health System.
Under the agreement, WMCHealth will assume full ownership and operational control of multiple nursing home facilities and the three Bon Secours Mercy Health hospitals in its western region. WMCHealth has been the primary operator of the three hospitals and their affiliated facilities since entering the joint venture with Bon Secours Mercy Health in 2015.
3. Littleton (N.H.) Regional Healthcare signed a letter of intent with Lebanon, N.H.-based Dartmouth Health to become a member of the system.
LRH, a 25-bed critical access hospital, entered into the search to affiliate with a larger system in early 2023. The process included a request for proposal, response reviews and selection of future partners that best aligned with its mission.
4. Farmington-based UConn Health is in talks to purchase three hospitals — Bristol Hospital, Day Kimball Hospital and Waterbury Hospital — for nearly $400 million.
UConn Health is preparing a bid for Waterbury Hospital as part of Los Angeles-based Prospect Medical Holdings’ Chapter 11 bankruptcy proceedings. The system is also in discussions with Bristol and Day Kimball hospitals, a move that could establish a new public health system in Connecticut. No letter of intent has been signed and no structural arrangements have been finalized.
5. Tallahassee-based Florida State University and Tallahassee Memorial HealthCare struck an agreement that will transform the hospital into an academic medical center.
The parties signed a memorandum of understanding that formally establishes a framework for a comprehensive academic medical center. Under the agreement, both parties will work with the city to transfer the hospital’s assets to FSU. The university is then expected to lease the assets to Tallahassee Memorial under a 40-year lease and operating agreement.
Tallahassee Memorial will remain the licensed operator of the hospital,“preserving its independent, tax-exempt status, while collaborating with FSU through research, branding, academic and clinical agreements.
6. Two hospitals in Lawton, Okla., agreed to combine to form a new health system called Memorial Health System of Southwest Oklahoma.
Comanche County Memorial Hospital’s proposed acquisition of Southwestern Medical Center was approved by the former’s board of directors and the Comanche County commissioners. The acquisition is expected to be completed by the end of 2025.
