CHS closed hospital sales in Tennessee and Pennsylvania, and UConn Health received state approval to acquire a Connecticut hospital.
Here are five hospital M&A moves Becker’s reported on during the week of Feb. 2:
1. Detroit-based Henry Ford Health is transferring its Madison Heights, Mich.-based hospital to Warren, Mich.-based Trillium Health Care Management, which plans to convert the site into an inpatient behavioral health facility.
Trillium will assume ownership of the facility and begin renovations to create a 75-bed inpatient behavioral health hospital as early as this spring. Renovations are expected to take about a year. Trillium said the facility could grow to more than 100 inpatient beds.
Under the arrangement, Henry Ford Health will continue to operate and staff the Madison Heights emergency department as a standalone site. Trillium will lease the emergency department back to the system while owning, operating and staffing the behavioral health hospital.
2. Rapid City (S.D.) Medical Center signed a letter of intent to join Monument Health, also based in Rapid City.
The parties plan to sign definitive agreements under the LOI and close the transaction this spring. In conjunction with the deal, while many Rapid City Medical Center physicians will join Monument Health, other physicians will continue to serve the community by remaining independent or joining other practices.
3. Franklin, Tenn.-based Community Health Systems completed the sale of its 80% ownership interest in Tennova Healthcare-Clarksville Hospital and the freestanding emergency room Tennova ER-Sango operations to Nashville, Tenn.-based Vanderbilt Health for $623 million. Vanderbilt has held a 20% minority stake in the hospital since 2021.
Vanderbilt Health said the acquisition marks its fourth regional hospital expansion. Vanderbilt Clarksville Hospital joins the organization’s network of regional medical centers, which includes Vanderbilt Wilson County Hospital in Lebanon, Vanderbilt Tullahoma-Harton Hospital in Coffee County and Vanderbilt Bedford Hospital in Shelbyville.
4. CHS completed the sale of its three Pennsylvania hospitals to newly formed nonprofit Tenor Health Foundation for $33 million plus a $15 million promissory note from the buyer.
Under the deal, Tenor, a newly formed nonprofit, acquired Regional Hospital of Scranton (186 beds), Moses Taylor Hospital in Scranton (122 beds) and Wilkes-Barre General Hospital (369 beds). With the sale, CHS exited Pennsylvania.
5. Farmington, Conn.-based UConn Health received approval of an emergency certificate-of-need application from Connecticut’s Office of Health Strategy to acquire Waterbury (Conn.) Hospital from bankrupt Los Angeles-based Prospect Medical Holdings.
Under the approval, UConn Health must maintain or improve existing services for at least three years, engage with the community in health planning efforts, and provide an assessment of Waterbury Hospital and its operations, including a strategic integration plan, within nine months.
OHS is also requiring UConn Health to adopt existing insurance reimbursement rates until new contracts are negotiated, tie rate increases to state cost benchmarks and negotiate future contracts separately from other hospitals. The health system is prohibited from converting current outpatient offices to hospital-based billing status for three years to protect patients from higher facility fees.
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