Transactions & Valuation Issues

Four clinics formerly owned by Renton, Wash.-based Providence are slated to reopen Jan. 13 under the PeaceHealth name. 

The beginning of the new year is off to a busy start for hospital and health system mergers and acquisitions with several deals announced, advancing or finalized. 

While average hospital margins stabilized last year, consolidation trends show health systems are still facing significant financial challenges.

Dayton (Ohio) Children's has acquired two pediatric offices, Springboro, Ohio-based Cornerstone Pediatrics and Sidney, Ohio-based Shelby Pediatrics.

Ontario, Calif.-based Prime Healthcare has lined up plans to acquire 12 hospitals this year and is open to the possibility of further acquisitions should the opportunities make sense. 

Rady Children's Hospital-San Diego and Orange, Calif.-based Children's Hospital of Orange County have officially merged to form Rady Children's Health, a three-hospital system with multiple primary and specialty care centers. 

Ontario, Calif.-based Prime Healthcare plans to acquire Lewiston-based Central Maine Healthcare by the end of the year. 

Ithaca, N.Y.-based Cayuga Health System and Elmira, N.Y.-based Arnot Health have merged into a five-hospital system with more than $1 billion in annual revenue. 

Healthcare mergers and acquisitions decreased 9% between 2023 and 2024, but an increase in deals is expected in 2025, according to PwC.

New Hampshire Attorney General John Formella's office has approved Nashville, Tenn.-based HCA Healthcare's acquisition of Manchester, N.H.-based Catholic Medical Center.