Hospital deals surged in 2024 — the percentage of transactions with a financially distressed hospital hit an all time high and the average annual revenue of the distressed hospital inched up from $219 million in 2022 to $401 million last year, according to a report from Kaufman Hall.
ASCs are keeping an eye on the increased consolidation in their markets, as the deals shift competitive dynamics, reimbursement rates and opportunities for partnerships.
Here are seven hospital deals Becker's has reported on so far in 2025:
1. Santa Clara (Calif.) County reached a definitive agreement to buy San Jose, Calif.-based Regional Medical Center, part of Nashville, Tenn.-based HCA Healthcare, for $150 million. The asset purchase agreement signed by both parties will integrate the 258-bed hospital into the Santa Clara Valley Healthcare system.
2. Tenor Health Partners, a hospital turnaround company, received bankruptcy court approval to purchase Dallas-based Steward Health Care's Sharon (Pa.) Regional Hospital for $1.9 million after the hospital closed Jan. 5. U.S. Bankruptcy Court Judge Christopher Lopez approved the sale Jan. 10.
3. Announced Jan. 8, Ontario, Calif.-based Prime Healthcare plans to acquire Lewiston-based Central Maine Healthcare by the end of the year. Under the agreement, Prime would become the sole owner of Central Maine Healthcare, an integrated health system with three hospitals, a cancer center and network of physician practices across the state.
4. Rady Children's Hospital-San Diego and Orange, Calif.-based Children's Hospital of Orange County merged to form Rady Children's Health, a three-hospital system with multiple primary and specialty care centers.
5. Ithaca, N.Y.-based Cayuga Health System and Elmira, N.Y.-based Arnot Health merged into a five-hospital system with more than $1 billion in annual revenue. The combined entity, which now operates under the name Centralus Health, has more than 6,500 employees serving a nine-county region.
6. New Hampshire Attorney General John Formella's office approved Nashville, Tenn.-based HCA Healthcare's acquisition of Manchester, N.H.-based Catholic Medical Center Jan. 6. The approval comes after the review process for the acquisition was extended in late December to allow the state's director of charitable trusts more time to review. An HCA subsidiary and CMC signed an asset purchase agreement in early July 2024 and started the regulatory review process.
7. Bethlehem, Pa.-based St. Luke's University Health Network signed a definitive agreement to acquire Grand View Health in Sellersville, Pa. Grand View is a community-based system with several primary care and outpatient facilities and more than 2,000 employees. The deal is expected to close in mid-to-late 2025, pending the completion of regulatory reviews and closing conditions. If approved, Grand View would become St. Luke's 16th hospital.