Atrium Health and WakeMed announced merger plans and UPMC signed a definitive agreement that would see it enter a new state.
Here are five hospital M&A moves Becker’s reported during the week of May 4:
1. Sioux Falls, S.D.-based Sanford Health and Robbinsdale, Minn.-based North Memorial Health signed a definitive agreement to come together as a single nonprofit health system, the latest major healthcare combination involving a Minnesota organization.
The deal — expected to close sometime this year — would see Sanford, the nation’s largest rural health system with 58 hospitals, combine with North Memorial, a two-hospital system with more than 22 clinics across the Twin Cities region.
Sanford and North Memorial said they plan to invest $600 million in Minnesota through the combined organization, including modernizing and sustaining North Memorial Health’s Robbinsdale Hospital and doubling the size of Maple Grove (Minn.) Hospital.
2. The Tallahassee Branch of the NAACP has filed a lawsuit seeking to block the transfer of city-owned Tallahassee (Fla.) Memorial HealthCare assets to Florida State University, arguing the city violated state law in approving the deal.
On March 11, the Tallahassee City Commission voted 3-2 to transfer TMH’s assets — including a 772-bed hospital serving a 21-county region — to FSU to support the creation of an integrated academic health center in the state capital. Under the agreement, FSU would assume ownership of the hospital property while TMH would continue operating the facility under a long-term lease and retain responsibility for hospital operations, employees and patient care.
The lawsuit alleges the transfer constitutes the disposition of municipal hospital assets under Florida law and that it should have followed statutory requirements governing the sale or transfer of public hospital property.
Spokespeople for Tallahassee Memorial HealthCare and FSU told Becker’s they do not comment on active litigation.
3. Chicago-based CommonSpirit Health and Pittsburgh-based UPMC signed a definitive agreement to transfer ownership of Trinity Health System, based in Steubenville, Ohio.
Trinity Health System includes Trinity West and Trinity East in Steubenville, Ohio; Trinity St. Clairsville (Ohio) Neighborhood Hospital; and Trinity Twin City Medical Center in Dennison, Ohio, along with associated clinics. The transaction would see UPMC expand into the Ohio hospital market.
The deal is expected to close this fall, pending regulatory review and customary closing conditions. Financial terms of the deal were not disclosed.
4. Charlotte, N.C.-based Atrium Health and Raleigh, N.C.-based WakeMed Health & Hospitals announced plans to combine into a single health system, which the organizations said involves a $2 billion investment in Wake County, N.C., to expand facilities, grow the workforce and broaden care access across North Carolina.
Atrium’s $2 billion investment would expand WakeMed’s footprint through several projects: the redevelopment and expansion of its Raleigh campus; the expansion of Cary (N.C.) Hospital and North Hospital in Raleigh; added development of inpatient and outpatient services at the WakeMed Garner (N.C.) Whole Health Campus; and construction of two new Healthplex locations to offer standalone emergency departments and outpatient services.
The deal is subject to regulatory review, which is expected to take several months.
The Wake County Board of Commissioners were set to vote May 4 on an amendment to WakeMed’s Transfer Agreement, but it has since been delayed — possibly until August.
5. Irving, Texas-based Christus Health took over operations at Mount Pleasant, Texas-based Titus Regional Medical Center, and renamed it Christus Health – Mount Pleasant Hospital.
Christus Health was selected as the strategic partner for Titus Regional in early February after the board of managers for the 174-bed hospital voted to move forward with the transaction.
The acquisition is part of Christus Health’s broader expansion in the area. The system opened the Christus Health Mount Pleasant Emergency Care Center Feb. 9, a $33 million, 36,000-square-foot facility that also houses a multispecialty clinic, which opened April 13, and houses cardiology, gastroenterology, primary care, pulmonology, urology and more services.
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