Healthcare mergers and acquisitions are in no short supply as providers, health tech companies, retailers 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 May.
Providers
Oregon Health & Science University and Legacy Health have called off their deal to combine into a 10-hospital integrated health system. The entity would have been the Portland, Oregon, metro area’s largest employer with over 32,000 staff members across more than 100 locations, driving almost $8 billion in total operating revenues. The systems described their decision as mutual.
Ascension is reportedly in “advanced talks” to purchase ambulatory surgery management services company AmSurg for about $3.9 billion, according to a May 30 Bloomberg report. The potential deal could come together within the coming weeks but still isn’t a certainty, according to sources granted anonymity to speak of the confidential discussions.
Northwell Health and Nuvance Health consummated their 28-hospital merger, creating a nonprofit delivering care to more than 13 million people in New York and Connecticut by way of a $22.6 billion operating budget. The pair had spent the past several months securing regulatory approvals and, in doing so, have made commitments to invest in and preserve certain service lines over the coming years.
Hudson Regional Hospital officially took control of three bankrupt CarePoint Health hospitals and related facilities. Hudson’s chair had provided more than $120 million in funding to the hospitals through the bankruptcy. A combined entity has now launched under the branding Hudson Regional Health.
UnityPoint Health has signed a letter of intent to acquire a Sioux City, Iowa-based hospital and its affiliated facilities from MercyOne. The deal for MercyOne Siouxland Medical Center is expected to be completed this summer, pending closing conditions. Financial terms were not disclosed.
Emory Healthcare will be integrating Warner Robins, Georgia-based community health system Houston Healthcare on June 1 thanks to a sign-off from the state’s attorney general. The deal brings two hospitals, seven outpatient facilities and nine other physician practices to Emory’s 10-hospital system.
Atlantic General Hospital and TidalHealth, both in Maryland, have signed a definitive agreement to merge under the latter’s name. The pair touted a conversion of Atlantic General’s EHR system over to Epic and new capital funding to invest in Atlantic General’s services.
Banner Health acquired seven primary care clinics and two walk-in locations from Village Medical. The sites are in northern Colorado and come with 46 providers and over 150 support staff. Terms were not disclosed, though Banner said it expects the integration to take a few months.
ChristianaCare plans to acquire five Crozer Health outpatient sites for $50.3 million. Crozer is owned by Prospect Medical Holdings, which is going through bankruptcy proceedings. The deal still requires bankruptcy court approval.
Payer
The SCAN Group is now the sole owner of myPlace Health, a company operating through the Program for All-Inclusive Care for the Elderly (PACE) model. MyPlace was previously owned by both the SCAN Group and the Commonwealth Care Alliance. Members are dual-eligible adults or adults just eligible for Medicaid. Terms were not disclosed.
CareSource is buying Lakeland Care, a Wisconsin-based managed care provider. It is the third agreement between CareSource and a Wisconsin health organization. Financial terms were not disclosed.
CVS Health said it received court approval on bids for the prescription files of 625 Rite Aid pharmacies in 15 states where it currently serves as well as another 64 stores in three others it does not. The deal is still subject to regulatory approvals and other closing conditions.
Tech
23andMe will be going to drugmaker Regeneron following its successful bankruptcy auction bid. Regeneron has signed up to pay $256 million for 23andMe and nearly all of its assets, including its R&D services operations as well as its biobank of collected samples. The deal, which is subject to court approval, does not cover 23andMe’s Lemonaid Health telemedicine and virtual pharmacy business.
Datavant is shifting from a neutral data linkage platform to a bigger competitor in the real-world data platform market with the announced acquisition of Aetion. The combination of Datavant and Aetion enables healthcare and life sciences companies to "more efficiently answer research questions about the clinical impact of therapies in development and in market," executives said. Financial terms were not disclosed.
Function Health, a preventive health and longevity startup, acquired Ezra to integrate Function’s lab testing capabilities with the company’s artificial-intelligence-powered full-body scans, combining two emerging health trends into one company. The companies did not disclose financial details of the deal.
MDaudit, a cloud-based continuous risk monitoring platform, has a definitive agreement to acquire Streamline Health Solutions, the maker of provider financial performance improvement tools. The deal is not subject to a financing condition and will be funded through a combination of cash on hand and available funds from existing credit facilities. It is expected to close during the third quarter.
SmarterDx, Thoughtful.ai and Access Healthcare, all portfolio companies of New Mountain Capital, have combined to create a new healthcare administrative and revenue management company called Smarter Technologies. The new company is expected to generate more than $800 million of revenue from its 200 clients and over 60 hospital systems.
Healthcare Triangle, a healthcare and life sciences data company, acquired Niyama Healthcare, an AI digital mental wellness company, and Ezovion Solutions, a maker of smart hospital and EHR management platforms. The pair of acquisitions are the backbone of Healthcare Triangle’s newly launched QuantumNexis, a subsidiary focused on AI software-as-a-service solutions for healthcare.
Infinx Healthcare, an AI patient access and revenue cycle management company, acquired the revenue cycle management business of i3 Verticals to strengthen its market position and make inroads into new customer segments. Financial terms were not disclosed.
Madison Dearborn Partners, a private equity investment firm, signed an agreement to acquire a significant ownership position in healthcare tech and data solutions company NextGen Healthcare from Thoma Bravo. The deal is expected to close in the second quarter. Terms were not disclosed.
Miscellaneous
GHR Healthcare, a staffing services company, has acquired Barton Healthcare Staffing, the nurse and allied health staffing affiliate of locum tenens firm Barton Associates. Financial terms were not disclosed.
Travel Nurse Across America and TotalMed, portfolio companies of Gridiron Capital and Stella Point Capital, respectively, have merged. The parent companies said merging the healthcare staffing and managed service provider solutions providers will strengthen their appeal to clients.
Wolters Kluwer Health acquired IntelliLearn, which makes online courses for nursing schools. Terms were not disclosed, though Wolters Kluwer said it expects a return within three to five years.
Labcorp announced the purchase of North Mississippi Health Services’ ambulatory outreach laboratory business. Financial terms were not disclosed, though the deal has Labcorp serving as the system’s referral laboratory and planning for three new patient service centers to be opened by midyear.