HCA Healthcare sold a Virginia behavioral health hospital and Sanford Health finalized a deal that grows it into a 60-hospital system. Here are seven hospital M&A moves Becker’s reported during the week of Aug. 31:
1. Salem (Ore.) Health Hospitals & Clinics completed its affiliation with Stayton, Ore.-based Santiam Hospital and Clinics.
The affiliation received approval in August from the Oregon Health Authority and Oregon Department of Justice. Both parties initially submitted the transaction for review in April through Oregon’s Health Care Market Oversight program, but withdrew the filing July 3, which ended the agency’s comprehensive review, and submitted a request for an emergency exemption that same day. Under the affiliation, Santiam employees will become Salem Health staff, with Salem Health investing millions into improvements on healthcare infrastructure at Santiam Health.
2. Nashville, Tenn.-based HCA Healthcare sold Dominion Hospital, a behavioral health facility in Falls Church, Va., to Woodmere, N.Y.-based Hill Valley Healthcare for $25 million.
Hill Valley Healthcare approached HCA as part of its interest in making additional investments in Virginia, an HCA spokesperson told Becker’s. HCA retains a significant behavioral health presence, operating 430 inpatient behavioral health beds and 19 outpatient programs statewide.
3. Marietta, Ga.-based Wellstar Health System reached an agreement to acquire Toccoa, Ga.-based Stephens County Hospital and its related entities.
The deal is expected to close toward the end of 2026, pending regulatory approvals. Stephens County Hospital CEO Van Loskoski said joining Wellstar will allow the 96-bed hospital to expand access to specialized services and invest in its long-term future.
4. Morgantown, W.Va.-based WVU Health System reached a settlement with the Pennsylvania Attorney General’s office that places conditions on its acquisition of Greensburg, Pa.-based Independence Health System.
The agreement requires WVU Health System to maintain services at Independence Health System’s facilities for at least five years and must also provide notice of significant changes in services. The system must also negotiate in good faith with health insurance plans, with a last-best-offer binding arbitration backstop if needed. The settlement prohibits certain contract provisions, including anti-tiering, anti-steering, gag, most-favored-nation, exclusivity and all-or-nothing clauses.
WVU Health System signed a definitive agreement in June to acquire the system, including plans to invest $800 million into it. The transaction was expected to close in late September or early October.
5. Chillicothe, Ohio-based Adena Health acquired Fairfield Medical Center in Lancaster, Ohio, making it the health system’s fifth hospital.
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.
Following the transaction, the Federal Trade Commission vowed to block “bad hospital deals,” stating it helped steer Fairfield Medical toward Adena. 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.
6. Sioux Falls, S.D.-based Sanford Health finalized its partnership with Robbinsdale, Minn.-based North Memorial Health. The transaction expands Sanford from 58 to 60 hospitals and brings its workforce to about 61,000 employees.
North Memorial is now part of Sanford Health and will serve as the anchor of a new Twin Cities care delivery region. North Memorial CEO Trevor Sawallish will lead the region alongside his leadership team and a local board of directors. As part of commitments made following review by the Minnesota Attorney General’s Office, Sanford plans to invest about $100 million in Robbinsdale Hospital to address deferred maintenance, upgrade facilities and equipment and support ongoing operations.
7. Grafton (W.Va.) City Hospital joined Charleston, W.Va.-based Vandalia Health.
The hospital will be renamed Vandalia Health Grafton Hospital. Vandalia — now a 17-hospital system — is investing $5 million in infrastructure and clinical services, building on a previous $1.5 million investment in Grafton, to prepare the hospital for the 2028 rollout of the system’s Epic EHR, which will include Grafton Hospital and create a single medical record across all system facilities.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
