Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

For-profit hospital M&A ramps up

The first quarter of 2024 marked the strongest merger and acquisition activity among hospitals and health systems since 2020. For-profit systems, in particular, are making a lot of moves in the hospital market and Dallas-based Steward Health Care recently received the green light to auction off its 31 hospitals in June and July.

Here are 18 hospital deals that have closed or are expected to close this year involving Tenet Healthcare, Community Health Systems, HCA Healthcare or Universal Health Services:

HCA Healthcare (Nashville, Tenn.)

1. Medical City Healthcare in Dallas, a subsidiary of HCA, acquired Trinity Regional Hospital Sachse (Texas) from Sunland Medical Foundation Feb. 1. The hospital opened in 2021 and filed for Chapter 11 bankruptcy protection in 2023, when it also began its search for a buyer. 

2. Los Angeles-based UCLA Health purchased West Hills Hospital and Medical Center, a 260-bed hospital, from HCA in March. 

3. Manchester, N.H.-based Catholic Medical Center signed a letter of intent in September to explore a merger with HCA. The two organizations are in exclusive discussions to consider a potential agreement.

4. Terre Haute, Ind.-based Union Health plans to acquire HCA's Terre Haute Regional Hospital, a 278-bed facility.

Tenet Healthcare (Dallas)

5-7. Tenet sold three South Carolina hospitals to Winston-Salem, N.C.-based Novant Health for $2.4 billion, effective Feb. 1. The hospitals include East Cooper Medical Center in Mount Pleasant, Hilton Head Hospital and Coastal Carolina Hospital in Hardeeville.

8-11. In March, Tenet completed the $975 million sale of four Southern California hospitals to Orange, Calif.-based UCI Health. Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical Center and Placentia-Linda Hospital are now part of UCI Health, which has added 858 inpatient beds as a result of the transaction. 

12-13. In March, Tenet also sold two hospitals — Sierra Vista Regional Medical Center in San Luis Obispo and Twin Cities Community Hospital in Templeton — to Roseville, Calif.-based Adventist Health for $550 million.

Community Health Systems (Franklin, Tenn.)

14-15. CHS's planned $320 million sale of two hospitals to Winston-Salem, N.C.-based Novant Health is moving forward after a federal judge in June rejected the Federal Trade Commission's request for a preliminary injunction to stop the transaction. The proposed transaction includes Mooresville, N.C.-based Lake Norman Regional Medical Center and Statesville, N.C.-based Davis Regional Medical Center.

16 In April, CHS entered into a definitive agreement to sell 351-bed Tennova Healthcare – Cleveland (Tenn.) to Hamilton Health Care System in Dalton, Ga., for $160 million in cash. 

17. El Dorado-based South Arkansas Regional Hospital plans to acquire El Dorado-based Medical Center of South Arkansas, a 166-bed facility, from CHS. 

Universal Health Services (King of Prussia, Pa.)

18. UHS plans to sell River Crest Hospital, an 80-bed behavioral health hospital, to Shannon Medical Center in San Angelo, Texas.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars

>