Latest Takeaways

September 5, 2023
Senior Reporter
"Hospital systems are returning to their roots as they look to sell long-term care, rehabilitation, skilled-nursing and home health businesses. They are divesting the inpatient-adjacent services amid the cost and regulatory pressures brought on by the COVID-19 pandemic. It’s an active seller’s market, particularly as private equity firms look to roll up post-acute assets. The divestitures may indicate that health systems are increasingly open to joint ventures and other types of partnerships as they look to share risk with post-acute providers."

Executive Summary

Updated: March 22, 2023

  • Chicago-based CommonSpirit Health and Alamonte Springs, Florida-based AdventHealth unwound their longtime Centura Health joint venture on Feb. 14, leaving most of Centura’s 20 hospitals to CommonSpirit. The following day, CommonSpirit said it would acquire Steward Health Care's five Utah hospitals. In 2021, the Federal Trade Commission sued to block Steward’s proposed sale of those hospitals to HCA Healthcare and the organizations nixed the deal in mid-2022.
  • University of Alabama-Birmingham Health System and Anniston, Alabama-based Northeast Alabama Regional Medical Center signed a non-binding letter of intent on Feb. 8 to merge.
  • Sioux Falls, South Dakota-based Sanford Health and Minneapolis-based Fairview Health Services are postponing their $14 billion merger until May 31. They delayed the transaction after Minnesota Attorney General Keith Ellison (D) asked the companies to slow down the deal, which was to close by March 31.
  • St. Augustine, Florida-based Flagler Health+ and UF Health, the University of Florida’s academic health center based in Gainesville, said on Feb. 2 that they signed a non-binding letter of intent to merge.
  • The North Carolina health systems CarolinaEast Health System and UNC Health will break up their merger on March 31, less than two years after the nonprofits combined.
  • Tewksbury, Massachusetts-based Covenant Health called off its proposed acquisition of Putnam, Connecticut-based Day Kimball Healthcare on March 15.


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