Hospital M&A: 10 recent deals by the numbers

The COVID-19 pandemic slowed hospital merger and acquisition activity in the second quarter of this year, but dozens of deals closed in the first seven months of 2020. 

Below is a breakdown of 10 of the hospital mergers and acquisitions that were announced or completed since Jan. 1. 

1. Prime acquires California hospital 

The players: The deal involves Ontario, Calif.-based Prime Healthcare and St. Francis Medical Center in Lynwood, Calif. 

The deal in a sentence: Prime purchased St. Francis Medical Center out of bankruptcy in August. 

The numbers: Under the $350 million deal, which closed after a four-month review process, Prime committed to invest $47 million in capital improvements at the hospital. With the addition of St. Francis, Prime owns and operates 46 hospitals in 14 states and has nearly 40,000 employees. 

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2. Sentara, Cone Health to merge 

The players: The deal involves Norfolk, Va.-based Sentara Healthcare and Greensboro, N.C.-based Cone Health. 

The deal in a sentence: Sentara and Cone Health announced the merger plan in August, and the deal is expected to close in mid-2021. 

The numbers: The merger would create an $11.5 billion system with 17 hospitals and more than 2,400 physicians and advanced practice clinicians. 

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3. McLaren Health adds 15th hospital 

The players: The deal involves Grand Blanc, Mich.-based McLaren Health Care and St. Luke’s Hospital in Maumee, Ohio. 

The deal in a sentence: St. Luke’s Hospital will join McLaren Health on Oct. 1. 

The numbers: St. Luke’s, a 312-bed hospital, will be the 15th hospital in McLaren’s system. McLaren, which has 28,000 employees, also includes ambulatory surgery centers, a 490-member physician network and commercial and Medicaid health maintenance organizations covering more than 588,000 lives. 

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4. Marshfield Clinic acquires 2 hospitals

The players: The deal involves Marshfield (Wis.) Clinic Health System and St. Louis-based Ascension. 

The deal in a sentence: On Aug. 1, Marshfield Clinic completed the purchases of Weston, Wis.-based Ascension St. Clare’s Hospital and acquired Ascension’s interest in Flambeau Hospital in Park Falls, Wis.

The numbers: When the deal closed, Marshfield Clinic became a 10-hospital system. Marshfield Clinic has more than 100,000 employees and more than 1,200 clinicians. 

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5. Advocate Aurora, Beaumont to merge

The players: The deal involves Southfield, Mich.-based Beaumont Health and Advocate Aurora Health, which has dual headquarters in Milwaukee and Downers Grove, Ill.

The deal in a sentence: Advocate Aurora and Beaumont signed a nonbinding letter of intent in June to create a health system spanning Michigan, Wisconsin and Illinois. 

The numbers: The merger would create a $17 billion system with 36 hospitals, more than 545 outpatient sites, about 108,000 employees and more than 13,000 physicians. 

Read more here

6. Banner Health to acquire Wyoming hospital 

The players: The deal involves Phoenix-based Banner Health and Wyoming Medical Center in Casper. 

The deal in a sentence: Under the deal, announced July 14, Wyoming Medical Center would join Banner Health. 

The numbers: When the $200 million deal closes, Banner will include 29 hospitals across six states. 

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7. Carle Health acquires 2 hospitals 

The players: The deal involves Advocate Aurora Health, which has dual headquarters in Milwaukee and Downers Grove, Ill., and Urbana, Ill.-based Carle Health. 

The deal in a sentence: Carle Health acquired BroMenn Medical Center in Normal, Ill., and Advocate Eureka (Ill.) Hospital and their affiliate sites from Advocate Aurora in July. 

The numbers: Carle acquired the two hospitals for $190 million. The system has more than 9,500 employees. 

Read more here

8. Merger creates 10-hospital system in Maine 

The players: The deal involves Brewer, Maine-based Northern Light Health and Mayo Regional Hospital in Dover-Foxcroft, Maine. 

The deal in a sentence: Mayo Regional Hospital merged with Northern Light Health on March 1. 

The numbers: Through the merger, Northern Light Health became a 10-hospital system. The system also comprises a medical group, eight nursing homes, 37 primary care sites and has more than 12,000 employees. 

Read more here

9. 2 New York hospitals merge 

The players: The deal involves Albany (N.Y.) Memorial Hospital and Samaritan Hospital in Troy, N.Y.

The deal in a sentence: Albany Memorial merged with Samaritan Hospital on Jan. 1. 

The numbers: Albany Memorial became the third campus of Samaritan Hospital, and it was renamed Samaritan Hospital-Albany Memorial Campus. Both hospitals are part of Albany-based St. Peter’s Health Partners, which includes more than 170 sites of care and has more than 12,000 employees. 

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10. Delaware, Maryland health systems merge

The players: The deal involves Seaford, Del.-based Nanticoke Health Services and Salisbury, Md.-based Peninsula Regional Health System. 

The deal in a sentence: Nanticoke Health joined Peninsula Regional Health System in January, about a year after they announced their intent to merge. 

The numbers: Under the deal, Nanticoke’s 99-bed hospital and its physician network joined Peninsula Regional Health System, which also includes Peninsula Regional Medical Center, a 266-bed hospital that sees nearly 500,000 patients each year. 

Read more here.  

More articles on healthcare industry transactions:
Beaumont delays vote on Advocate Aurora merger to address physician complaints
McLaren Health Care adds 15th hospital
7 hospital mergers called off in past year


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