LifePoint, ScionHealth CEOs Share Successful Acquisition and Launch

Just before Christmas, LifePoint Health announced the completion of its acquisition of Kindred Healthcare, just two months after the transaction was first announced. Through the transaction, LifePoint grew its already large footprint across 29 states, and now has more than 65 community hospital campuses, over 170 additional sites of care, and over 30 rehabilitation and behavioral health hospitals added from Kindred. LifePoint CEO David Dill and ScionHealth CEO Rob Jay spoke with HealthLeaders about the LifePoint and Kindred transaction, the launch of ScionHealth, and the organizations’ future strategies in a recent interview.

Capital Health to Acquire Trinity Health’s St. Francis Medical Center

Capital Health signed a definitive agreement to acquire Trinity Health’s St. Francis Medical Center, the New Jersey-based health systems announced Wednesday. Capital Health operates Capital Health Medical Center—Hopewell in Pennington and Capital Health Regional Medical Center in Trenton, which is two miles away from St. Francis. Capital Health has a medical group that includes more than 20 primary-care practices and dozens of specialty practices. In addition to the academic medical center, Capital Health would acquire St. Francis’ physician group, its schools of nursing and radiology and its internal medical residency program.

There Were Fewer Hospital and Health System M&A Transactions in 2021, but They Were Greater in Size: Analysis

Though there were fewer mergers and acquisitions among hospitals and health systems in 2021, the size of the transactions was greater, a new analysis has found. The analysis, put out by Kaufman Hall, determined that eight of 49 (16%) transactions in 2021 were considered megamergers, where the seller or smaller partner averaged $1 billion in annual revenues. That’s nearly double the percentage of these types of transactions in 2020, and also the highest in six years. Most transactions, however, saw the smaller partner’s revenue between $100 million and $500 million.

Providence and Hoag Agree to Separate

Providence and Hoag will break up their merger this month, the not-for-profit healthcare organizations announced late Monday. Hoag, a small Southern California-based health system, sued Providence in 2020, claiming that the 52-hospital Catholic system didn’t hold up its end of their population health initiative. Hoag will separate from Renton, Washington-based Providence on Jan. 31, about nine years after they combined. The organizations reached a settlement agreement but declined to elaborate.

Health Systems Eye Outpatient Sector as Hospital M&A Continues to Slump

Annual hospital merger transaction activity sunk to the lowest level in more than a decade, a new report shows. Announced deals dropped to 71 in 2021, the lowest mark since 2009 and the fourth consecutive annual decline, according to the healthcare advisory firm Ponder & Co. The COVID-19 pandemic’s disruption paused many planned transactions, as relief funding and reimbursement cut delays allowed many health systems to hold steady, experts said.While hospital executives are still probing potential deals, M&A volumes may not rebound until 2023, said Eb LeMaster, managing director at Ponder. Boosting outpatient networks has been a higher priority, he said.

Trinitas Regional Medical Center Joins RWJBarnabas Health, New Jersey’s Largest Academic Health System

Trinitas Regional Medical Center is now a member of RWJBarnabas Health, the largest academic health system in the state of New Jersey. RWJBarnabas Health welcomed the Elizabeth, New Jersey-based hospital into its network of healthcare facilities after a thoughtful and deliberate planning process, which will continue into their shared future. Together, both organizations will be able to increase access to high-quality healthcare in the Northern and Central New Jersey regions, and expand outreach to underserved communities.

Kearney Regional Medical Center Joins Bryan Health

On Jan. 1, 2022, Kearney Regional Medical Center (KRMC) joined Bryan Health, a Nebraska owned and governed non-profit health system that treats patients from every Nebraska county and surrounding states. With the addition of KRMC’s 850 employees, Bryan Health now employs more than 6,300 Nebraskans focused on treatment, prevention and education. KRMC opened in 2014, as a physician-driven hospital, with the backing of community and private investors. In seven years it has grown to serve central and western Nebraska, as well as northern Kansas counties, for inpatient and outpatient care, as well as outreach services through Platte Valley Medical Clinic, a multi-specialty clinic located on the KRMC campus.

Webster Memorial Joins Davis Health System

Davis Health System has officially “assumed the operational assets” of Webster Memorial Hospital, officials said Thursday. “We are pleased to welcome Webster Memorial Hospital, the medical staff and all employees to Davis Health System”, Vance Jackson, president and CEO of DHS, said in a press release. “Since 2016, we have worked toward the idea of a closer relationship. Today, I am proud to call Webster the newest addition to the Davis Health family.” Webster County Memorial Hospital has been in operation for 50 years, serving the citizens of Webster County and surrounding areas.

Trinity Health Will Not Buy Chestnut Hill Hospital

Trinity Health Mid-Atlantic, which signed a preliminary agreement to buy Tower Health’s Chestnut Hill Hospital in September, will not complete the deal, leaving the facility to continue operating under a cloud of uncertainty. “Trinity Health Mid-Atlantic determined that it could not identify enough synergies that would result in substantial benefits for patients and the community,” Tower CEO P. Sue Perrotty wrote in a memo to employees Thursday. Tower said it does not plan to close Chestnut Hill, which has been packed with COVID-19 patients during the current surge, and will continue exploring a sale.

NorthShore University HealthSystem, Edward-Elmhurst Health Finalize Merger

NorthShore University HealthSystem (NorthShore) and Edward-Elmhurst Health announced Wednesday the completion of their merger, uniting 25,000 team members and 6,000 physicians with an unwavering commitment to serving an area of more than 4.2 million residents in communities across Illinois. The partnership creates the third largest health system, with total revenue expected to exceed $5 billion in the first year of operation, and the second largest physician network in the state. Nine hospitals and more than 300 ambulatory locations will serve patients across six counties in northeast Illinois – 69 miles from Waukegan in Lake County to Crest Hill in Will County.