Kaufman Hall has noted a growing M&A trend in 2026 it calls “clear, active repositioning” as health systems navigate macroeconomic pressures and headwinds.
In the third quarter, systems kept expanding their existing hospital networks with clear long-term goals in mind, Kaufman Hall said in its quarterly M&A report published Oct. 13. Systems also continued expanding complementary service-line and business-unit partnerships to gain the capabilities they need to transform.
“The sustained focus on growing expertise and know-how beyond scale alone is clearly demonstrated,” Kaufman Hall said in the report.
Kaufman Hall pointed to Salt Lake City-based Intermountain Health as a “prime example” of this trend, homing in on a pair of deals the system made in the third quarter. In one deal, the system expanded its presence in Idaho by acquiring two facilities from Brentwood, Tenn.-based Surgery Partners. In another move, Intermountain signed a definitive agreement with Altamonte Springs, Fla.-based AdventHealth to form a joint venture combining their greater Denver-area hospitals and care sites.
“Each transaction had a unique rationale for partnership, a differentiated path to value in the geography served, and a clear role in proactively positioning Intermountain for transformation across its markets,” Kaufman Hall said.
Intermountain completed its deal with Surgery Partners on Sept. 17. The system is now the majority owner of Idaho Falls Community Hospital and Mountain View Hospital, both in Idaho Falls, Idaho, after acquiring Surgery Partners’ stake.
Combined, the hospitals employ more than 150 physicians and offer 126 beds across nine surgical specialties, plus oncology, emergency department, ICU and neonatology services. The facilities will keep their current brands and remain locally managed by existing leadership teams and physicians. Physician ownership of Mountain View Hospital will remain unchanged under the new structure.
“This investment reflects our long-term commitment to supporting access to high-quality, affordable care in the region while preserving local leadership and operations,” Intermountain Health said in a Sept. 17 statement.
Intermountain’s definitive agreement with AdventHealth was signed Aug. 6. The joint venture is expected to close in early 2027, pending regulatory approvals. The deal would bring together AdventHealth’s five Denver-area hospitals — AdventHealth Avista, AdventHealth Castle Rock, AdventHealth Littleton, AdventHealth Parker and AdventHealth Porter — along with off-site emergency and urgent care centers and dozens of medical practices, and Intermountain’s Good Samaritan Hospital, Lutheran Hospital and Platte Valley Hospital, along with their related physician practices and clinics. AdventHealth will manage and lead daily operations.
AdventHealth CEO David Banks said that by bringing together the two systems’ capabilities, they can “expand access, augment services, enhance clinical quality, and continue improving the health and well-being of people across the greater Denver metro.”
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