Healthcare mergers and acquisitions are in no short supply as providers, health tech companies, payers and other industry players look to expand their businesses and gain a competitive edge. Here’s a roundup of new deals that were revealed, closed, rumored or called off during the month of February.
Provider
CommonSpirit Health sold its 23.8% equity stake in Tenet Healthcare’s revenue cycle management subsidiary, Conifer, for $540 million—though that money has already been extinguished to offset the first in a series of payments totaling $1.9 billion it agreed to in order to end an ongoing revenue cycle management contract. The early close of a 20-year arrangement before its 2032 conclusion will allow CommonSpirit to conduct the work in-house to reduce costs, executives said, though will have the large nonprofit paying hundreds of millions to Tenet over the next three years.
Enhabit, which runs 249 home health locations and 117 hospices, is going private via a $1.1 billion all-cash purchase by private equity firm Kinderhook Industries. The deal is expected to close in the second quarter of this year and comes about four years after Enhabit’s spinoff from Encompass Health. The companies said Enhabit will receive greater resources and expertise under its new owner to support a long-term investment in staff, clinical excellence and innovation.
Community Health Systems wrapped a $600 sale of its 80% interest in two joint ventures to Vanderbilt University Medical Center. Those JVs own and operate Tennova Healthcare – Clarksville, a 270-bed hospital with 1,100 staff, and other ancillary businesses in the major Tennessee city.
Community Health Systems also closed a deal to sell Commonwealth Health, a three-hospital system, to nonprofit Tenor Health Foundation. The deal ran Tenor $33 million in cash plus a $15 million promissory note, with additional cash considerations possible depending on collections of certain patient accounts receivable during the following 90 days.
Central Maine Healthcare, a three-hospital system, has joined Prime Healthcare Foundation, the nonprofit charity wing of Prime Healthcare. The deal grows Prime Healthcare Foundation’s footprint to 21 hospitals nationwide.
HCA Healthcare subsidiary Medical City Healthcare, a 22-hospital system, acquired 13 CommunityMed urgent care centers in Texas. Financial terms were not disclosed, though the deal brings Medical City Healthcare’s urgent care network to a new market with 95 total sites.
Henry Ford Health announced it will “as early as this spring” be transferring its Madison Heights hospital to Trillium Health Care Management. The latter plans to transition the hospital into a 75-bed inpatient behavioral health hospital.
Kaleida Health’s Bradford Regional Medical Center could be sold to the Lake Erie College of Osteopathic Medicine, according to a report that the parties are in discussions for a potential deal. Kaleida this month announced plans to close several of the hospital’s services.
Payers
Humana’s CenterWell closed a deal to buy MaxHealth, a primary care provider, from private equity firm Arsenal Capital Partners. Financial terms were not disclosed, though the deal reportedly values MaxHealth at $1 billion. The company includes roughly 80 clinics providing care to more than 120,000 patients.
Centene has a deal in place to sell the remainder of Magellan Health to Madison Health Group. The insurer had previously divested Magellan’s pharmacy unit, Magellan Rx, and its Magellan Specialty Health division.
Cigna’s Evernorth acquired CarepathRx, a pharmacy that dispenses to hospitals and health systems. The company had already held a minority stake after partnering with them in 2023.
Blue Cross Blue Shield of Michigan is selling its AF Group subsidiary, which providers workers’ compensation and specialty insurance products, to Enstar Group. Financial terms of the deal, expected to close in the fourth quarter, were not disclosed.
Health Tech
Masimo, a patient monitoring medtech company, is being acquired for $9.9 billion by Danaher Corp. Masimo leadership called the deal “an ideal fit” that “will strengthen our ability to scale our monitoring technologies globally.” Masimo will operate as a standalone company within Danaher’s diagnostics segment, the latter said. The deal is being funded with cash on hand and proceeds from new debt financing.
Hims & Hers is ramping up its international presence with the acquisition of Australian digital health company Eucalyptus and its brands. The consumer health and wellness platforms’ deal is expected to close in the middle of the current calendar year and is valued at nearly $1.2 billion.
RevSpring, a vendor of healthcare payment tools, acquired integrated payment platform provider TrustCommerce. The deal expands RevSpring’s scale and boosts its integrated payments capabilities. Financial terms were not disclosed.
R1 RCM sold par8o, its 340B referral capture business, to tech-enabled pharmacy solutions company NuvemRx. Financial terms were not disclosed. NuvemRx said the deal expands its services for covered entities by helping them capture specialty referrals, retain patients, comply with reporting policy changes and grow savings.
Rippl, a dementia care platform that aims to keep seniors in their homes, was acquired by Harbor Health, a Texas-based direct primary and specialty care provider that recently launched insurance plans. Financial terms weren’t disclosed, though the announcement highlighted new financial commitments into the combined company from Rippl’s existing investors.
Purview, a cloud-based medical imaging company, was acquired by Healthmark Group, which offers clinical information exchange solutions for provider customers. Financial terms were not disclosed. Healthmark said the pickup will “provide complete, timely and secure access” to medical imaging data across care settings, with the tech’s integration rolling out to existing customers in the coming months.