When there's less competition, prices are higher. That's one fundamental principle of economics that applies to all markets, and this is especially true in healthcare, where American hospitals are the driver of the rising cost of care, Barak Richman, PhD, professor of law and business administration at Durham, N.C.-based Duke University, wrote in a Jan. 19 column for Politico.

Financial and clinical challenges will ensure merger and acquisition activity remains strong in the healthcare sector in 2023, building on the momentum of last year, Kaufman Hall said in a Jan. 12 report.

Charleston, W.Va.-based Vandalia Health has signed a definitive agreement to acquire Plateau Medical Center in Oak Hill from a subsidiary of Community Health Systems, the Register-Herald reported Jan. 12.

Some of the larger merger and acquisition transactions and proposals in the healthcare sector are no longer just about economies of scale but have other goals in mind, such as improving health equity, according to a Jan. 12 report from KaufmanHall.

Tacoma, Wash.-based MultiCare Health System on Jan. 17 completed the acquisition of Yakima Valley Memorial Hospital and its associated clinics.

  David Ramsey, president and CEO of Charleston, W.Va.-based Vandalia Health, expects healthcare cost pressures to force more community hospitals to join larger health systems, MetroNews reported Jan. 16.

Pittsburgh-based UPMC will acquire Sports Surgery Clinic, an independent hospital specializing in orthopedic surgery in Dublin, Ireland, according to a Jan. 14 news release. 

A merger between Sioux Falls, S.D.-based Sanford Health and Minneapolis-based Fairview Health System has been a subject of debate in the North Star State, with ownership of the University of Minnesota Medical Center proving particularly contentious. 

Some of the largest healthcare merger and acquisition deals in 2022 involved cross-market transactions, and this trend is expected to continue in 2023, a report from Kaufman Hall said.

Morgantown, W.Va.-based WVU Medicine will acquire Welch (W.Va.) Community Hospital after the McDowell County Commission approved the takeover, according to the Bluefield Daily Telegraph.

Hospital and health system mergers and acquisitions are projected to regain momentum in the following years as providers adapt to tougher financial conditions and look for strategic partnerships either to scale or stay afloat, according to a Kaufman Hall report published Jan. 12.

Healthcare transaction revenues hit all-time highs in 2022, according to an analysis from Kaufman Hall.

John Muir Health has entered into a definitive agreement with Tenet Healthcare to acquire sole ownership of San Ramon (Calif.) Regional Medical Center. 

Emeryville, Calif.-based care platform Canopy Health has added Hayward, Calif.-based St. Rose Hospital to its network.

Unionized healthcare workers and the Minneapolis-based University of Minnesota are continuing to push back against a proposed merger between Fairview Health Services, also based in Minneapolis, and Sioux Falls-based Sanford Health. 

Gainesville-based Northeast Georgia Health System will acquire Habersham Medical Center in mid-2023 after a deal was finalized late on Jan. 10, the health system said in a news release. 

Eden Prairie, Minn.-based Optum secured its second partnership agreement in a matter of days with a healthcare system to take over its revenue cycle management and information technology operations.

University of Chicago Medicine and AdventHealth began 2023 with closure of their joint venture, leaving UChicago Medicine with controlling interest in four AdventHealth hospitals in Illinois. 

Huntington, W.Va.-based Mountain Health Network, Huntington-based Marshall Health and Logan (W.Va.) Regional Medical Center are partnering to bring specialty care to Southern West Virginia.

Charleston, W.Va.-based Saint Francis Hospital will close its emergency department Feb. 1, FOX11 reported Jan. 6.