Transactions & Valuation Issues

Brentwood, Tenn.-based LifePoint Health and Louisville, Ky.-based Kindred Healthcare will establish a new healthcare company with 79 hospital campuses when their deal is complete, the companies said Oct. 26.

The Federal Trade Commission announced Oct. 25 it is restoring its practice of requiring companies that previously pursued an anticompetitive merger to get prior approval for future transactions. 

In the last six months, several health systems have canceled plans to merge, acquire a hospital or unwind an existing partnership. 

Oct. 29 marks the deadline for Cigna and Baylor St. Luke's Medical Center in Houston to reup their contract, which affects 70,000 members. 

Syracuse, N.Y.-based St. Joseph's Health, a 431-bed, Trinity Health-owned hospital, is the latest in the network to alert patients of a looming contract termination deadline. 

For-profit hospital operator Prospect Medical Holdings said it is conducting a strategic review of Springfield, Pa.-based Crozer Health but that it may not result in a sale of the four-hospital system as previously reported, according to the Philadelphia Business Journal.

Wauwatosa, Wis.-based Froedtert Health acquired an 80 percent controlling interest of Manitowoc, Wis.-based Holy Family Memorial for $29.9 million, according to the health system's recent financial disclosure.

Five transactions involving hospitals and health systems have been announced, finalized or advanced since Oct. 15:

Prospect Medical Holdings, a for-profit hospital operator based in Los Angeles, is planning to sell Springfield, Pa.-based Crozer Health, The Philadelphia Inquirer reported Oct. 21.

Ascension and AdventHealth are unwinding their Amita Health partnership after working together for nearly seven years, the organizations announced Oct. 21.