The following hospital mergers and acquisitions took place within the past two weeks, beginning with the most recent.
1. CHS to Acquire MetroSouth Medical Center in Illinois
Community Health Systems has formed a definitive agreement to acquire MetroSouth Medical Center, a 244-hospital in Blue Island, Ill. The sale is expected to be finalized in the first quarter of 2012. If it's completed, MetroSouth will be the ninth CHS-affiliated hospital in Illinois. It's located approximately 20 miles south of Chicago.
2. NJ Attorney General Signs Off on Warren Hospital, St. Luke's Merger
New Jersey Attorney General Paula T. Dow has approved the proposed merger between St. Luke's Hospital and Health Network, based in Bethlehem, Pa., and Warren Hospital in Phillipsburg, N.J. The systems are hoping to finalize the deal by the end of the year.
3. DuPage Health and Delnor Name New Combined System in Illinois
Winfield, Ill.-based Central DuPage Health and Geneva, Ill.-based Delnor Health System merged in March. They announced the name of the new, combined entity this week — Cadence Health System.
4. County Judge Approves Sale of Moses Taylor in Pennsylvania to CHS
A county judge has approved the proposed $152 sale of Moses Taylor Healthcare System in Scranton, Pa., to Community Health Systems. A spokesman for the Attorney General's Office has said the AG has no objection to the pending transaction.
5. Judge Approves Receivership for Westerly Hospital in Rhode Island
A judge approved Westerly (R.I.) Hospital's application for receivership this week. A temporary administrator, called a special master in this instance, will be named by the end of the week to oversee the hospital while it is in receivership. Westerly's exclusive negotiations with Lawrence & Memorial Hospital in New London, Conn., have been suspended due to its receivership status.
6. Virginia Regional in Minnesota Moves Forward With Essentia Merger
City councilors and the steering committee for Virginia (Minn.) Regional Medical Center have voted in favor of a merger with Duluth, Minn.-based Essentia Health. Under the proposed plan, the city will enter into a 20-year lease agreement with Essentia, which would also invest roughly $17 million to improve the VRMC facility.
7. Capella and Saint Thomas to Partner, Jointly Own 4 Tennessee Hospitals
Nashville, Tenn.-based Capella Healthcare and Saint Thomas Health have signed a letter of intent to form a partnership expected to go into effect on or before March 1. Capella and Saint Thomas will jointly own and operate four hospitals in Tennessee and possibly additional facilities in Tennessee and Kentucky. Capella will be the managing member and majority partner in the new partnership.
8. Judge Sides With FTC; Says ProMedica, St. Luke's Partnership is Anti-Competitive
An administrative judge has upheld an FTC ruling that a partnership between St. Luke's Hospital in Maumee, Ohio, and Toledo, Ohio-based ProMedica is anti-competitive. ProMedica and St. Luke's formed the partnership in 2010.ProMedica said it will appeal the decision and that St. Luke's will remain part of ProMedica through that appeals process. It will first appeal to the FTC. If that is not successful, it can take its appeal to the 6th Circuit Court of Appeals.
9. New York's WCA Hospital Considers Ties With UPMC Hamot
WCA Hospital in Jamestown, N.Y., is exploring a strategic affiliation with UPMC Hamot in Erie, Pa. If the organizations do affiliate, the 342-bed WCA has said it will remain an independent non-profit hospital. An affiliation would also make it the only hospital in New York to have ties with the UPMC system.
10. Westlake Regional in Kentucky Explores Merger, Sale
Westlake Regional Hospital in Columbia, Ky., is seeking a partner for a merger or sale. The struggling hospital has lost $11.75 million over the last 11 years and soon faces a $1.1 million annual debt payment.
11. MedCath Sells Harlingen Medical Center in Texas to Prime
Charlotte, N.C.-based MedCath has sold its ownership interest in Harlingen (Texas) Medical Center to Ontario, Calif.-based Prime Healthcare Services. Prime acquired MedCath's 34.83 percent ownership in Harlingen, a 112-bed hospital, along with its 36 percent ownership in HMC Reality. The transaction valued MedCath's combined ownership interest at $9 million.
12. University of Mississippi Medical Center, HMA May Partner
University of Mississippi Medical Center in Jackson is exploring a public-private affiliation with Naples, Fla.-based Health Management Associates. Officials from the organizations hope to have details of an affiliation by March.
13. Indiana's Logansport Memorial, St. Vincent Partner
Logansport (Ind.) Memorial Hospital announced it has partnered with Indianapolis-based St. Vincent Health for hospitalist and emergency services, effective Jan. 2, 2012. St. Vincent, whose parent is Ascension Health, already provides cardiology services to Logansport.
14. Universal Health Services to Acquire Texas' Knapp Medical Center
King of Prussia, Pa.-based Universal Health Services has announced it has entered into a definitive agreement to acquire Knapp Medical Center in Weslaco, Texas. UHS will acquire the 226-bed hospital, Knapp Surgery Center as well as the Mid Valley Physician Association and Knapp Medical Group. The deal is expected to close in early 2012.
15. Board of Florida's Health Central Approves Sale to Orlando Health
The board of Ocoee, Fla.-based based Health Central approved the hospital's sale to Orlando Health for $177 million. At that same meeting, Health Central CEO Richard Irwin subsequently his resignation upon the sale's completion. The new entity will be called Orlando Health Central and the transaction is expected to officially close by March 31.
16. Chicago's Northwestern Memorial May Partner With Roseland Community Hospital
Executives from Chicago-based Northwestern Memorial HealthCare and Roseland Community Hospital met several weeks ago to discuss a potential partnership. The organizations did not discuss a merger, but agreed to meet again in early 2012 to discuss a formal alliance.
17. Johnston Health in North Carolina Seeks New Management Model
Smithfield, N.C.-based Johnston Health is considering a new management model that may include replacing its current operator, creating a joint venture or selling the system. The board of the county-owned hospital system had already mailed requests for information to "no more than 10" healthcare firms.
18. UPMC, Washington Hospital Form Joint Venture for Urgent Care
The Washington (Pa.) Hospital and the University of Pittsburgh Medical Center have formed a joint venture agreement to operate urgent care centers. The centers will be named "UPMC Urgent Care with The Washington Hospital." The first center will be the existing Washington Hospital Urgent Care Center, but the organizations plan to open two new sites within the next 18 months.
6 Overlooked Hospital M&A Concepts and Trends
Healthcare Private Equity: Opportunities, Outlook for 2012
1. CHS to Acquire MetroSouth Medical Center in Illinois
Community Health Systems has formed a definitive agreement to acquire MetroSouth Medical Center, a 244-hospital in Blue Island, Ill. The sale is expected to be finalized in the first quarter of 2012. If it's completed, MetroSouth will be the ninth CHS-affiliated hospital in Illinois. It's located approximately 20 miles south of Chicago.
2. NJ Attorney General Signs Off on Warren Hospital, St. Luke's Merger
New Jersey Attorney General Paula T. Dow has approved the proposed merger between St. Luke's Hospital and Health Network, based in Bethlehem, Pa., and Warren Hospital in Phillipsburg, N.J. The systems are hoping to finalize the deal by the end of the year.
3. DuPage Health and Delnor Name New Combined System in Illinois
Winfield, Ill.-based Central DuPage Health and Geneva, Ill.-based Delnor Health System merged in March. They announced the name of the new, combined entity this week — Cadence Health System.
4. County Judge Approves Sale of Moses Taylor in Pennsylvania to CHS
A county judge has approved the proposed $152 sale of Moses Taylor Healthcare System in Scranton, Pa., to Community Health Systems. A spokesman for the Attorney General's Office has said the AG has no objection to the pending transaction.
5. Judge Approves Receivership for Westerly Hospital in Rhode Island
A judge approved Westerly (R.I.) Hospital's application for receivership this week. A temporary administrator, called a special master in this instance, will be named by the end of the week to oversee the hospital while it is in receivership. Westerly's exclusive negotiations with Lawrence & Memorial Hospital in New London, Conn., have been suspended due to its receivership status.
6. Virginia Regional in Minnesota Moves Forward With Essentia Merger
City councilors and the steering committee for Virginia (Minn.) Regional Medical Center have voted in favor of a merger with Duluth, Minn.-based Essentia Health. Under the proposed plan, the city will enter into a 20-year lease agreement with Essentia, which would also invest roughly $17 million to improve the VRMC facility.
7. Capella and Saint Thomas to Partner, Jointly Own 4 Tennessee Hospitals
Nashville, Tenn.-based Capella Healthcare and Saint Thomas Health have signed a letter of intent to form a partnership expected to go into effect on or before March 1. Capella and Saint Thomas will jointly own and operate four hospitals in Tennessee and possibly additional facilities in Tennessee and Kentucky. Capella will be the managing member and majority partner in the new partnership.
8. Judge Sides With FTC; Says ProMedica, St. Luke's Partnership is Anti-Competitive
An administrative judge has upheld an FTC ruling that a partnership between St. Luke's Hospital in Maumee, Ohio, and Toledo, Ohio-based ProMedica is anti-competitive. ProMedica and St. Luke's formed the partnership in 2010.ProMedica said it will appeal the decision and that St. Luke's will remain part of ProMedica through that appeals process. It will first appeal to the FTC. If that is not successful, it can take its appeal to the 6th Circuit Court of Appeals.
9. New York's WCA Hospital Considers Ties With UPMC Hamot
WCA Hospital in Jamestown, N.Y., is exploring a strategic affiliation with UPMC Hamot in Erie, Pa. If the organizations do affiliate, the 342-bed WCA has said it will remain an independent non-profit hospital. An affiliation would also make it the only hospital in New York to have ties with the UPMC system.
10. Westlake Regional in Kentucky Explores Merger, Sale
Westlake Regional Hospital in Columbia, Ky., is seeking a partner for a merger or sale. The struggling hospital has lost $11.75 million over the last 11 years and soon faces a $1.1 million annual debt payment.
11. MedCath Sells Harlingen Medical Center in Texas to Prime
Charlotte, N.C.-based MedCath has sold its ownership interest in Harlingen (Texas) Medical Center to Ontario, Calif.-based Prime Healthcare Services. Prime acquired MedCath's 34.83 percent ownership in Harlingen, a 112-bed hospital, along with its 36 percent ownership in HMC Reality. The transaction valued MedCath's combined ownership interest at $9 million.
12. University of Mississippi Medical Center, HMA May Partner
University of Mississippi Medical Center in Jackson is exploring a public-private affiliation with Naples, Fla.-based Health Management Associates. Officials from the organizations hope to have details of an affiliation by March.
13. Indiana's Logansport Memorial, St. Vincent Partner
Logansport (Ind.) Memorial Hospital announced it has partnered with Indianapolis-based St. Vincent Health for hospitalist and emergency services, effective Jan. 2, 2012. St. Vincent, whose parent is Ascension Health, already provides cardiology services to Logansport.
14. Universal Health Services to Acquire Texas' Knapp Medical Center
King of Prussia, Pa.-based Universal Health Services has announced it has entered into a definitive agreement to acquire Knapp Medical Center in Weslaco, Texas. UHS will acquire the 226-bed hospital, Knapp Surgery Center as well as the Mid Valley Physician Association and Knapp Medical Group. The deal is expected to close in early 2012.
15. Board of Florida's Health Central Approves Sale to Orlando Health
The board of Ocoee, Fla.-based based Health Central approved the hospital's sale to Orlando Health for $177 million. At that same meeting, Health Central CEO Richard Irwin subsequently his resignation upon the sale's completion. The new entity will be called Orlando Health Central and the transaction is expected to officially close by March 31.
16. Chicago's Northwestern Memorial May Partner With Roseland Community Hospital
Executives from Chicago-based Northwestern Memorial HealthCare and Roseland Community Hospital met several weeks ago to discuss a potential partnership. The organizations did not discuss a merger, but agreed to meet again in early 2012 to discuss a formal alliance.
17. Johnston Health in North Carolina Seeks New Management Model
Smithfield, N.C.-based Johnston Health is considering a new management model that may include replacing its current operator, creating a joint venture or selling the system. The board of the county-owned hospital system had already mailed requests for information to "no more than 10" healthcare firms.
18. UPMC, Washington Hospital Form Joint Venture for Urgent Care
The Washington (Pa.) Hospital and the University of Pittsburgh Medical Center have formed a joint venture agreement to operate urgent care centers. The centers will be named "UPMC Urgent Care with The Washington Hospital." The first center will be the existing Washington Hospital Urgent Care Center, but the organizations plan to open two new sites within the next 18 months.
Related Articles on Hospital M&A:
Not a Merger, Not an Acquisition: When and Why Strategic Partnerships Make Sense6 Overlooked Hospital M&A Concepts and Trends
Healthcare Private Equity: Opportunities, Outlook for 2012