Primary care clinics changed hands this week while one proposed merger in Indiana fell apart.
Here's a look at the top healthcare deals this week.
Union Health withdraws proposal to acquire hospital
Union Health withdrew its application to acquire Terre Haute Regional Hospital, a proposal federal regulators warned would create a monopoly poised to increase costs, stifle wage growth and reduce care quality.
Union Health, a two-hospital system based in Terre Haute, Indiana, filed for a Certificate of Public Advantage last year to acquire Terre Haute Regional Hospital, roughly six miles from Union Health’s main facility. Union said it needed to acquire Terre Haute to expand services, improve care quality and reduce costs.
McLaren Health buys 10 primary care clinics
Grand Blanc, Michigan-headquartered McLaren Health Care announced the acquisition of Park Medical Centers. Under the deal, 10 primary care practices will become a division of McLaren Medical Group and retain their staff, name and branding, according to a news release. McLaren includes 13 hospitals, five non-hospital-based healthcare campuses, and about 150 clinics, a spokesperson said. Financial details were not disclosed.
Related: Michigan hospital files for bankruptcy for the third time
Community Health Systems nixes $120M deal to sell 3 hospitals
Community Health Systems scrapped a $120 million deal to sell three Pennsylvania hospitals and related facilities to WoodBridge Healthcare.
CHS and WoodBridge mutually decided to dissolve the agreement Friday due to WoodBridge's inability to satisfy funding requirements, according to a Tuesday news release. Investment banking firm Zeigler was unable to sell the bonds needed to fund the acquisition, despite earlier indications of confidence in the bond sales, WoodBridge said in a separate release.
Prospect Medical expects to sell CharterCare hospitals in January
Rhode Island's Director of Health Dr. Jerry Larkin signed off on Prospect Medical Holdings' pending sale of two CharterCare hospitals to the Centurion Foundation.
On Monday, Larkin accepted the state Health Services Council's recommendation to approve the sale, which involves Providence-based Roger Williams Medical Center and North Providence-based Our Lady of Fatima Hospital, according to a news release from the Rhode Island Department of Health. The council advises the state's health department on facility licensing and proposed ownership changes.
Health Advocates Network acquires imaging staffing company
Health Advocates Network, a Boca Raton, Florida-headquartered staffing company, acquired Dallas-based DiagnosTemps, which specializes in connecting imaging professionals with healthcare organizations. No layoffs are anticipated as a result of the transaction, according to a spokesperson. No financial details were available.
Related: One specialty still dominates use of AI in medtech
CHS to sell ShorePoint operations
Community Health Systems signed a definitive agreement to sell Florida-based ShorePoint Health System to AdventHealth for $265 million.
The agreement involves two hospitals — ShorePoint Health Port Charlotte and certain assets of ShorePoint Health Punta Gorda — in addition to ancillary businesses such as physician clinics, outpatient services and a freestanding emergency department. The deal is expected to close in the first quarter of 2025 and is subject to regulatory approvals, according to a Friday news release.
Quote of the week
“How we think about M&A is it has to align with our priorities for the midterm and long term. They have to complement what we already have from a technology perspective and they need to bring differentiation to our customers.”
— Catherine Estrampes, president and CEO of GE HealthCare U.S. and Canada
