Three of the largest for-profit health systems entered into multiple transactions this year as part of strategic plans to bolster their hospital portfolios, offload certain facilities or explore ways to expand their reach.
Below is a breakdown of the hospital deals that Tenet Healthcare, Community Health Systems and HCA Healthcare entered into or completed this year:
HCA Healthcare (Nashville, Tenn.)
1-3. HCA sold three Louisiana hospitals for $150 million to New orleans-based LCMC Health in January. The Federal Trade Commission had ordered LCMC to halt the acquisition while it conducted a review, but the Louisiana legislature and state attorney general had authorized the deal to go through. A federal judge ruled in favor of LCMC in September, stating that the system sought the correct state approvals for the purchase of the three Tulane University hospitals.
4-6. HCA's Medical City Healthcare in Dallas completed its acquisition of Wise Health System in December. Decatur, Texas-based Wise Health System's three inpatient hospitals are now part of Medical City, a 19-hospital system.
7. HCA plans to buy bankrupt Trinity Regional Hospital Sachse (Texas) for $41 million. The 32-bed hospital filed for bankruptcy in August and a bankruptcy judge approved the sale Nov. 29. The transaction is expected to close by the end of January.
8. Manchester, N.H.-based Catholic Medical Center signed a letter of intent in September to explore a merger with HCA. The two organizations will begin exclusive discussions to consider a potential agreement.
9. Terre Haute, Ind.-based Union Health plans to acquire HCA's Terre Haute Regional Hospital. The 278-bed hospital will continue operations with no interruption through the transition. Union Health is working with Terre Haute Regional to extend job offers and answer employee questions.
Tenet Healthcare (Dallas)
10-12. In November, Winston-Salem, N.C.-based Novant Health and Tenet signed a definitive agreement for Novant to acquire three South Carolina hospitals from Tenet for about $2.4 billion. As part of the deal, Tenet's Conifer Health Solutions subsidiary will enter into a 15-year contract to provide revenue cycle management services for the three hospitals. The deal is expected to be completed in early 2024.
13. In January, John Muir Health entered into a definitive agreement with Tenet to acquire sole ownership of San Ramon (Calif.) Regional Medical Center. Under the agreement, Walnut Creek, Calif.-based John Muir will acquire the remaining 51% interest in the hospital from Tenet for about $142.5 million. However, the Federal Trade Commission sued to block the transaction, arguing that the deal will drive up healthcare costs.
Community Health Systems (Franklin, Tenn.)
14-16. CHS completed the sale of three Florida hospitals to Tampa General Hospital for $294 million in December. The hospitals include 120-bed Bravera Health Brooksville, 124-bed Bravera Health Spring Hill and 128-bed Bravera Health Seven Rivers.
17-18. CHS completed the $92 million sale of Oak Hill, W.Va.-based Plateau Medical Center to Charleston, W.Va.-based Vandalia Health on April 1. Vandalia, the parent company of Charleston Area Medical Center, also acquired Greenbrier Valley Medical Center — a 122-bed facility in Ronceverte, W.Va. — from CHS for $85 million on Jan. 1
19-20. In February, CHS signed a definitive agreement to sell two hospitals to Novant Health. Subsidiaries of CHS will sell Lake Norman Regional Medical Center in Mooresville, N.C., and Davis Regional Medical Center in Statesville, N.C., to Novant for about $320 million. The transaction comes as Davis Regional transitions from a general acute care hospital to an inpatient behavioral health hospital. The deal is set to close by the end of the year, pending regulatory approvals.
21. El Dorado-based South Arkansas Regional Hospital signed a definitive agreement in April to acquire El Dorado-based Medical Center of South Arkansas from CHS. The Medical Center of South Arkansas is a 166-bed hospital that had more than 95,000 patient encounters in 2022.