From Community Health Systems looking to exit Pennsylvania, to HCA seeking to acquire a New Hampshire health system, here are five deals involving publicly traded for-profit health systems that have yet to close:
1. Santa Clara (Calif.) County's board of supervisors voted unanimously on Aug. 27 to purchase San Jose, Calif.-based Regional Medical Center, part of Nashville, Tenn.-based HCA Healthcare, for $175 million.
The deal is expected to close in the first quarter of 2025, with Regional Medical Center integrating with the county-operated Santa Clara Valley Healthcare system.
2. Dallas-based Tenet Healthcare on Aug. 5 agreed to sell its 70% majority ownership interest in Birmingham, Ala.-based Brookwood Baptist Health to Orlando (Fla.) Health. The proposed transaction includes five hospitals, as well as affiliated physician practices and other related operations.
The proposed deal is valued at approximately $910 million in cash with after-tax proceeds of approximately $790 million. Under the proposed agreement, Tenet's revenue cycle management arm, Conifer Health Solutions, will enter into a 10-year contract to provide services for the Alabama hospitals and related operations.
The deal is expected to close in the fall.
3. Franklin, Tenn.-based Community Health Systems on July 30 signed a definitive agreement to sell its three Pennsylvania hospitals to affiliates of WoodBridge Healthcare, a nonprofit organization led by healthcare veteran Joshua Nemzoff.
The proposed $120 million deal includes a $10 million prepayment for services to be provided subject to an IT transition services agreement and an adjustment for the assumption of any capital/finance leases and net working capital.
CHS expects the deal to close in the fourth quarter.
4. Catholic Medical Center, a 330-bed regional health system in Manchester, N.H., entered into an asset purchase agreement July 1 with a subsidiary of HCA and initiated the regulatory review process with the New Hampshire Attorney General's Office.
HCA currently operates three hospitals in New Hampshire: Parkland Medical Center in Derry, Portsmouth Regional Hospital and Frisbie Memorial Hospital in Rochester. HCA CEO Sam Hazen said at Morgan Stanley's Global Healthcare Conference on Sept. 5 that the proposed acquisition will "round out our New Hampshire network in a way that we think is productive over time."
In the July 1 announcement, the health systems did not specify a tentative date for finalizing the deal.
5. Terre Haute in September 2023 announced plans to acquire Terre Haute Regional Hospital, which is part of HCA. The deal is the first to test the state's certificate of public advantage (COPA) law. Under the law, the department can issue a certificate "only if it finds that there is clear evidence that the proposed merger would improve the health outcomes, healthcare access, and the quality of healthcare provided to the population currently served by the hospitals, and those benefits must outweigh any potential disadvantages that result from the proposed merger."
The Federal Trade Commission submitted a Sept. 5 comment to the Indiana Department of Health urging it to reject an application. The FTC found that the hospitals are financially stable and could operate on their own without a merger. Union Health disagreed and issued a statement saying that the merger represents an "innovative solution" in "overcoming persistent health disparities" in the area.
A spokesperson for IDOH told Becker's Sept. 5 that it is still reviewing applications and plans to take all comments from the public into consideration.