From Prime striking a deal to acquire its ninth Illinois hospital to the Nebraska Board of Regents approving a plan that would give the university sole ownership of Nebraska Medicine, here are five hospital M&A moves that Becker’s reported during the week of Jan. 12:
1. Ontario, Calif.-based Prime Health Care entered into an asset purchase agreement with Mishawaka, Ind.-based Franciscan Alliance to acquire its Franciscan Health Olympia Fields (Ill.), making it the system’s ninth hospital in Illinois.
Under the proposed transaction, Franciscan Health Olympia Fields and Specialty Physicians of Illinois would transition to Prime. The health system also committed $5 million in philanthropic contributions to support Franciscan’s medical education expansion.
Prime will offer jobs to “substantially all employees” at the 214-bed facility.
2. The University of Nebraska’s Board of Regents unanimously approved an $800 million plan that would give the university sole ownership of Omaha-based Nebraska Medicine.
The proposal would have the university pay Omaha-based Clarkson Regional Health Services $500 million for its 50% membership stake in Nebraska Medicine, plus about $300 million for the land and buildings Clarkson acquired when it first partnered with the university in 1997 to govern the system.
The Nebraska Medicine Board of Directors, who have opposed the transaction, has filed a lawsuit seeking to halt the deal.
3. Tallahassee (Fla.) City Commissioners accepted a proposed memorandum of understanding between the city and Florida State University that would convert a city‑owned hospital into a full academic medical center under the FSU Health umbrella.
Under the proposed agreement between the university and city officials, all city‑owned hospital assets currently leased to Tallahassee Memorial HealthCare would ultimately transfer to FSU — also located in Tallahassee — paving the way for integration with FSU Health.
A third and final public hearing on the proposed deal will be held on March 11.
4. The city of Greenville, Ala., signed a letter of intent with Frey Medical Management to begin management operations and pursue the purchase of Regional Medical Center of Central Alabama.
Frey Medical Management is a healthcare company that specializes in “revitaliz[ing] struggling rural hospitals,” according to its website.
Under the proposed agreement, RMCCA would continue to function as a full-service hospital and preserve comprehensive medical services for Greenville and the surrounding areas. Hospital employment is also expected to be unaffected.
5. San Angelo, Texas-based Shannon Health System signed an asset purchase agreement to acquire Big Spring, Texas-based Scenic Mountain Medical Center from subsidiaries of Brentwood, Tenn.-based Quorum Health.
The agreement comes after Shannon purchased West Texas Medical Plaza in 2024, where Scenic Mountain Medical Group is located. If finalized, Scenic Mountain Medical Center will become part of Shannon’s regional system, which includes three hospitals, 25 clinic locations and more than 400 providers in West Texas.
The deal is expected to be completed in the coming months.
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