A deal to transform Summa Health into a for-profit health system was finalized, and Deaconess Health System completed the acquisition of its 19th hospital.
Here are five hospital M&A moves that Becker’s reported during the week of Sept. 29:
1. Hopkinsville, Ky.-based Jennie Stuart Health joined Evansville, Ind.-based Deaconess Health System on Oct. 1, becoming the 19th hospital in the system’s network.
Under the new acquisition, Jennie Stuart will retain its name and culture while gaining access to Deaconess’ resources and expertise. As part of the deal, Deaconess will invest at least $95 million into Jennie Stuart and fully fund Jennie Stuart’s transition to Deaconess’ version of the Epic EHR system. The move would otherwise cost the 194-bed hospital between $40 million and $60 million as a standalone entity.
2. Akron, Ohio-based Summa Health finalized a deal with General Catalyst’s Health Assurance Transformation Company, creating a new partnership the organizations say is designed to strengthen operations and modernize care delivery.
The $485 million agreement, completed Oct. 1, transitions Summa into a for-profit, taxable health system backed by a “significant investment” from HATCo, a subsidiary of the venture capital firm General Catalyst.
3. Freeport, Ill.-based FHN plans to affiliate with Rockford, Ill.-based Mercyhealth.
Mercyhealth will invest $100 million in FHN over the next five years to support capital projects and expand services as part of the agreement. The transaction is expected to close by Dec. 31, pending regulatory approval.
4. Brown Health Medical Group, part of Providence, R.I.-based Brown University Health, merged with Brown Physicians Inc.
In striking an agreement with the state attorney general, the office suspended an antitrust investigation into the proposed merger, which was initiated in fall 2024. As part of the conditions in the agreement, Brown University Health will take on 40,000 new primary care patients by Dec. 31, 2029, and hire up to 27 new primary care providers to increase care access.
5. Livonia, Trinity-based Trinity Health divested its 49% ownership stake in a joint venture with Emory Healthcare for St. Joseph’s Health System, which includes St. Joseph’s Hospital of Atlanta and Johns Creek Hospital.
In exchange for the sale, Trinity received $150 million in cash and a $150 million promissory note, which will be repaid quarterly with interest over two years.
