From a Colorado hospital taking a step closer to joining UCHealth to a front-runner emerging to acquire revenue cycle management company AGS Health, here are four advancing healthcare deals that Becker’s has reported on since May 19:
1. A federal judge has approved Rite Aid’s bankruptcy plan to close stores and sell most of its pharmacy assets to other national chains.
CVS, Walgreens, and grocery store chains Albertsons, Kroger, Giant Eagle and others entered into separate transactions to buy Rite Aid’s assets, including prescription services and 810 of its 1,240 pharmacy locations. CVS is the largest potential buyer, as it plans to take over prescriptions at 650 Rite Aid pharmacies and acquire 64 stores.
2. The San Joaquin County Board of Supervisors unanimously voted to extend San Joaquin General Hospital’s management services agreement with Dignity Health — a division of Chicago-based CommonSpirit — for three more years. The agreement, valued at $5.74 million, will span from July 1, 2025, through June 30, 2028.
The board initially entered into the MSA with Dignity in May 2022, after determining that hospital services could be delivered “more efficiently, effectively and economically” under the partnership. The original agreement included an 18-month term with an option for a 10-year extension. It was first renewed for an additional 18 months in October 2023 and is currently set to expire on June 30, 2025.
3. Private equity firm Blackstone emerged as the front-runner to acquire revenue cycle management company AGS Health from EQT Partners, three people familiar with the situation told Moneycontrol on the condition of anonymity. The valuation is expected to be in the range of $1.1 billion to $1.3 billion.
AGS Health serves 150 clients, including hospitals and health systems. Its website lists Phoenix-based Banner Health and Nashville, Tenn.-based Vanderbilt University Medical Center as clients.
4. Park Hospital District, which operates Estes Park (Colo.) Health, approved a resolution to partner with Aurora, Colo.-based UCHealth. The hospital district and UCHealth signed a letter of intent in October for the hospital to join the system after Park Hospital District voters in 2023 authorized the district to join a health system.
The partnership is expected to be completed in late 2025, pending review by the Colorado Attorney General.
