This year is expected to be busy with healthcare mergers and acquisitions (M&A). Consulting company PwC reported that annual healthcare deals shot up 70% through Nov. 15 compared to pre-Covid trends, and projected the trend will continue into 2025.
“We expect that the significant amount of available corporate and private equity capital, the prospect of further interest rate cuts, and lengthening hold periods for which there is a need to realize a return on investment will all continue to accelerate deal activity into and throughout 2025,” the report read.
But the hospital industry has also faced challenges with closures and bankruptcies, sometimes related to private equity investment or rising costs.
To keep you in the loop this year, we are launching a new roundup of hospital M&A, bankruptcies, and closures around the country called Signed and Scrubbed. For our inaugural edition, here’s some of the biggest news from January.
Prospect Medical Holdings. Los Angeles, California, health system Prospect Medical Holdings filed for Chapter 11 bankruptcy on Jan. 11. A private equity-backed system with16 hospitals in four states, experts have compared its financial challenges to those of Dallas-based Steward Health Care, which has become infamous for its financial downfall over the past two years.
HCA and Catholic Medical Center. Nashville, Tennessee-based HCA, one of the biggest providers in the US, received final approval from the New Hampshire governor on Jan. 6 to acquire 330-bed Manchester-based Catholic Medical Center for $110 million.
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Prime Healthcare and Central Maine Healthcare. California-based Prime Healthcare, which operates 14 not-for-profit hospitals across six states, plans to acquire Central Maine Healthcare, a Lewiston, Maine-based health system that serves 400,000 patients. The deal was announced on Jan. 8 and is expected to close by the end of the year.
Rady Children’s Hospital–San Diego and Children’s Hospital of Orange County. These two California-based children’s hospitals completed a merger on Jan. 8. Now called Rady Children’s Health, the three-hospital system will be run by co-CEOs Kimberly Chavalas Cripe and Patrick Frias, who previously ran the former two systems.
Cayuga Health System and Arnot Health. Two upstate New York health systems in Ithaca and Elmira merged on Jan. 7 to make a five-hospital health system called Centralus Health.
St. Luke’s University Health Network and Grand View Health. St. Luke’s, based in Bethlehem, Pennsylvania, signed a definitive agreement on Jan. 3 to acquire Grand View Health based in Sellersville. If completed, the Grand View would become St. Luke’s 16th hospital.
Know of any deals, bankruptcies, or closures? Reach out to Cassie at [email protected].