Ohio hospital system shifts to for-profit model in week of hospital mergers and acquisitions

Last week, several significant hospital mergers and acquisitions took place, showcasing the evolving landscape of healthcare systems across the United States.

First, Jennie Stuart Health in Hopkinsville, Kentucky, joined Deaconess Health System in Evansville, Indiana, becoming the 19th hospital in the network. This partnership allows Jennie Stuart to benefit from Deaconess’ resources and expertise while retaining its name and identity. Deaconess has committed to investing at least $95 million in Jennie Stuart, including funding the transition to Deaconess’ Epic EHR system, which would have otherwise cost the hospital $40-$60 million as a standalone entity.

Additionally, Summa Health in Akron, Ohio, underwent a significant transformation by finalizing a deal with General Catalyst’s Health Assurance Transformation Company (HATCo). This agreement, valued at $485 million, marks Summa’s transition to a for-profit health system, supported by a substantial investment from HATCo. The partnership aims to enhance operations and modernize care delivery for Summa Health and its patients.

Further south, Freeport-based FHN announced its plans to affiliate with Rockford-based Mercyhealth. This partnership involves a $100 million investment by Mercyhealth over the next five years to facilitate capital projects and service expansions at FHN. The transaction is set to be completed by the end of the year pending regulatory approval.

Meanwhile, Brown Health Medical Group, a part of Brown University Health in Providence, Rhode Island, merged with Brown Physicians Inc. As a part of this merger, Brown University Health made commitments to take on 40,000 new primary care patients by the end of 2029 and hire up to 27 new primary care providers to improve care access. This move was made in compliance with conditions set by the state attorney general after suspending an antitrust investigation.

In Livonia, Trinity-based Trinity Health divested its 49% ownership stake in a joint venture with Emory Healthcare for St. Joseph’s Health System, including St. Joseph’s Hospital of Atlanta and Johns Creek Hospital. In exchange for this sale, Trinity received $150 million in cash and a $150 million promissory note, to be repaid with interest over two years.

These recent hospital mergers and acquisitions highlight the various strategies healthcare systems are adopting to adapt to the changing healthcare landscape and improve patient care. From partnerships to affiliations, these transactions aim to strengthen operations, enhance services, and drive innovation in healthcare delivery.