Busy Hospital M&A Period Resumes
The hospital and health system mergers and acquisitions scene is bustling with activity at the start of the new year. Let’s take a look at five updates on hospital M&A that have been reported since January 3rd:
1. Prime Healthcare, based in Ontario, California, has announced intentions to acquire Central Maine Healthcare in Lewiston by the end of 2025. This deal will make Prime the sole owner of the health system, including three hospitals, a cancer center, and physician practices throughout the state.
2. Rady Children’s Hospital in San Diego and Children’s Hospital of Orange County in Orange, California have merged to create Rady Children’s Health. This new system includes three hospitals and numerous primary and specialty care centers. Kimberly Cripe and Dr. Patrick Frias now share the role of co-CEOs for Rady Children’s Health, blending leadership from both organizations.
3. Cayuga Health System in Ithaca, New York, and Arnot Health in Elmira, New York have come together to form Centralus Health, a five-hospital system generating over $1 billion in annual revenue. With more than 6,500 employees serving a nine-county region, this merger is set to have a substantial impact on healthcare delivery in the area.
4. HCA Healthcare, headquartered in Nashville, Tennessee, has received approval from the New Hampshire Attorney General’s Office to acquire Catholic Medical Center in Manchester, New Hampshire. This Catholic system has 330 beds, over 400 providers, and 3,000 employees. The completion of this transaction is anticipated in the near future.
5. St. Luke’s University Health Network, located in Bethlehem, Pennsylvania, has solidified an agreement to acquire Grand View Health in Sellersville, Pennsylvania. Expected to close in the latter part of 2025, this deal will introduce Grand View Health as the 16th hospital under St. Luke’s network.
Amidst all these developments, the merging and acquiring of hospitals and health systems continue to reshape the healthcare landscape. With each new partnership, the way care is delivered and managed continues to evolve, impacting the community at large.
