Healthcare mergers and acquisitions continue as healthcare providers, medical technology companies, payers, and other industry players look to expand their businesses and gain a competitive edge. Here’s a roundup of new deals revealed, completed, rumored, and canceled during April.
provider
Community Health Systems sold Crestwood Medical Center to Huntsville Hospital Health System for $459 million. The 180-bed Alabama hospital will also have associated facilities, with investments expected in equipment, technology and nurse compensation, the new owners said.
Community Health Systems also completed a transaction for majority ownership of South Anchorage Surgical Center, an ASC in Alaska, and entered into an agreement to acquire another ASC, Alabama Surgical Institute, during the second quarter. Financial terms were not disclosed.
UConn Health has signed a letter of intent to add two hospitals to the UConn Health Community Network with Bristol Health and Day Kimball Hospital. Any transaction would require approval of necessary certifications from the state. The academic system also moved forward with plans to take over a psychiatric center for youth, the Albert J. Solnit Children’s Center-South Campus, from the state.
Orlando Health plans to acquire RMC Health System, a 375-bed municipal medical center and other facilities in northeast Alabama. Financial terms of the deal, which was not disclosed, are expected to close in the fall and will further expand Orlando Health’s presence in the contiguous state.
Quorum Health has sold Scenic Mountain Medical Center, a 146-bed community hospital, to Shannon Health Center. The deal allows Mr. Shannon to establish four hospitals in West Texas.
Baystate Health has signed a definitive agreement to acquire Mercy Medical Center, a 182-bed hospital, and its joint venture and affiliated medical group from Trinity Health of New England (part of the larger Trinity Health). Western Massachusetts Hospital’s financial terms were not disclosed.
West Virginia University Health System plans to add Fulton County Medical Center, a 21-bed critical access hospital, to its integrated network. The parties entered into a non-binding letter of intent in which WVU Health System commits up to $17 million over seven years to modernize the hospital.
Baptist Health has entered into a definitive agreement to acquire Magnolia Regional Medical Center, a 25-bed hospital in Arkansas. The deal closes on July 12, at which point the facility will be branded as Baptist Health Medical Center Magnolia.
Providence has signed a definitive agreement to transfer Queen of the Valley Medical Center and affiliated outpatient clinics to North Bay Health. Financial terms of the 198-bed Napa-based facility were not disclosed. The transaction is expected to close later this year, subject to regulatory review.
Prime Healthcare received regulatory approval to acquire Franciscan Health Olympia Fields, with a transaction date set for “on or about May 1.” The 214-bed hospital is the organization’s 55th hospital and its ninth in Illinois. The deal includes a $5 million charitable donation to previous owner Franciscan Alliance. Prime said it will “provide employment to substantially all of our employees and continue our charity care and community benefit programs.”
Witham Health Services, a 60-bed independent hospital located in Lebanon, Indiana, has signed a non-binding letter of intent to join Parkview Health as its 16th hospital later this year. There will be regulatory review and a public hearing for community input before the transaction closes.
Cornerstone Medical Group joins Henry Ford Health System’s 3,400-person medical group. Cornerstone Medical Group has 80 physicians and advanced practice providers in 25 offices around Detroit.
payer
UnitedHealth Group sold Optum UK to TPG, resulting in a net gain of $400 million to United Health Foundation. The sale of its subsidiaries, including EMIS, which provides a primary care EHR provider to most of the UK National Health Service, was disclosed in UnitedHealth Group’s first quarter results.
UnitedHealth Group also disclosed in its financial results that it has entered into an agreement to acquire Allegeus Technologies, a technology platform that provides benefits management for consumer healthcare accounts. The company said the transaction is income neutral through 2026 and is expected to close in the second half of this year, pending regulatory approval. The purchase price was not disclosed.
North Carolina-based Carolina Complete Health and WellCare, subsidiaries of Centene Corporation, have announced plans to merge, creating an organization with approximately 1 million members across Medicaid, Medicare and the Marketplace. The entity, branded Carolina Complete Health, will continue to support plans to serve approximately 240,000 Carolinians with behavioral health and intellectual or developmental disabilities.
CareSource and Community Care, Inc., nonprofit managed care organizations based in Ohio and Wisconsin, respectively, said they have received the necessary regulatory approvals to proceed with the partnership. This agreement is the second planned participation of Wisconsin in CareSource in recent years.
technology
Anthropic has acquired Coefficient Bio, a biotech startup that uses AI to improve efficiency in drug discovery and biological research, in a $400 million stock deal. The deal comes as Anthropic has spent the past six months working to strengthen its healthcare presence with new life science and healthcare product launches.
Inventurus Knowledge Solutions (IKS) Health has entered into a definitive agreement to acquire TruBridge for approximately $557 million. The deal will be funded by approximately $600 million in financing over the next five years. The transaction combines IKS Health’s care enablement capabilities with TruBridge’s revenue cycle management and electronic health record (EHR) services for rural and regional hospitals.
Care coordination company One Call has acquired electronic data interchange, information exchange and technology services company Data Dimensions. The agreement will enable One Call to provide an end-to-end infrastructure that combines intake, clinical coordination, data exchange and payments. Financial terms were not disclosed.
Azra AI, which sells oncology workflow automation and care coordination tools, has acquired Thynk Health, a technology company that provides lung cancer screening and incidental finding management technology. The companies’ combined platform currently processes more than 500 million clinical reports and messages annually across hundreds of hospitals. Financial terms were not disclosed.
Behavioral health records vendor Qualifacts has acquired Computalogic’s MethodOne, a software support for medication administration for opioid treatment programs. Financial terms were not disclosed.
Medisolve, a healthcare quality data management technology solver, has acquired Health Elements AI. The acquirer develops technology to capture and structure clinical data from records for use in quality reports and clinical registries. Financial terms were not disclosed.
Oura, maker of smart ring health wearables, has acquired AI personal health companion startup Galen AI “to accelerate Oura’s AI-powered vision for connected health companions.” Financial terms were not disclosed.
Behavior change digital health app Noom has acquired Tailor Made Compounding, a 403A pharmacy with operations in 36 states. Noom said the partnership will allow the company to expand into peptide-based therapies for healthy aging as well as weight health. Terms were not disclosed.
ModMed, which sells health IT products for specialty medical practices, has acquired Bonsai Health, a patient engagement AI company. Financial terms were not disclosed.
ESO Solutions, a data services and software company that sells to first responders, has acquired emergency department performance insights platform d2i. Financial terms were not disclosed.
Kipu Health, a behavioral health software company, has reportedly acquired Team Recovery Technologies, which creates patient engagement tools and provides consulting services.
others
The American Foundation for Suicide Prevention and the Jed Foundation have announced plans to merge to become the nation’s largest suicide prevention nonprofit organization. The deal is expected to close this fall and will create an organization with an annual operating budget of approximately $75 million and net assets of approximately $140 million.
