Sanford Health’s planned combination with North Memorial Health is moving forward and Lifepoint Health struck an agreement to sell a Virginia hospital to Bon Secours Mercy Health. Here are four hospital M&A moves Becker’s reported during the week of Aug. 24:
1. Sioux Falls, S.D.-based Sanford Health’s planned combination with Robbinsdale, Minn.-based North Memorial Health will move forward under a 10-year oversight agreement with the Minnesota Attorney General’s Office.
The agreement includes commitments to invest $600 million in North Memorial’s hospitals, preserve core services at Robbinsdale Hospital and maintain a range of workforce, access and community-benefit protections for a decade.
The transaction will create what the attorney general’s office described as the largest integrated urban-rural health system in Minnesota. Sanford already operates a broad network across western Minnesota, while North Memorial includes two hospitals and more than 20 clinics in the Minneapolis-St. Paul market.
2. Real estate investment firm The Landes Group completed its acquisition of Bryant, Ark.-based Encore Medical Center and finalized a long-term lease agreement with Little Rock-based University of Arkansas for Medical Sciences Health, which will operate the hospital.
Encore Medical Center is a 53-licensed-bed, 108,055-square-foot hospital that opened in 2021 with a focus on bariatric weight loss surgery and peripheral vascular disease. Landes acquired the hospital from Little Rock-based Arkansas Heart Hospital.
The Landes Group said the lease allows UAMS to bring the hospital into its system without the upfront investment of a direct purchase. UAMS is expected to take full operational control of the hospital Oct. 1.
3. Corvallis, Ore.-based Samaritan Health Services received conditional Oregon Health Authority approval for its proposed affiliation with Tacoma, Wash.-based MultiCare Health System.
MultiCare has committed to investing $700 million over 10 years in Samaritan’s region to fund expanded access to care, provider recruitment and retention, facility and technology upgrades and additional services in Samaritan’s markets.
The systems must also receive approval from two additional state reviews before they can close the transaction and will continue operating independently until the expected Oct. 1 closing.
4. Brentwood, Tenn.-based Lifepoint Health plans to sell Fauquier Health, a 97-bed hospital in Warrenton, Va., to Cincinnati-based Bon Secours Mercy Health.
The transaction is expected to close this fall, pending regulatory approvals. Upon completion, 97-bed Fauquier Health is expected to transition to a nonprofit model and continue operating as a community-based acute care hospital.
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