Literature Review

St. Luke's merger will be 'the first of many' M&A deals in the hospital sector this yearMedCity News, by Katie Adams, 1/4/24On New Year’s Day, two Missouri health systems — St. Louis-based BJC HealthCare and Kansas City-based St. Luke’s Health System — officially completed their merger. The deal, which was first announced last May, combines the two organizations into one integrated academic health system. The merger was one of the biggest hospital M&A deals announced last year. The combined health system comprises 28 hospitals and hundreds of clinics serving 6 million people across Missouri, Illinois and Kansas. It is expected to generate $10 billion in annual revenue.

Ensign (ENSG) buys 2 nursing facilities in Tennessee & NevadaZacks Equity Research; 1/2/24 The Ensign Group, Inc. announced that it bought the operations of a nursing facility in Harrogate, TN. It has also acquired the operations of a nursing facility in Sparks, NV. ... The 116-bed unit in Harrogate, named TriState Health and Rehabilitation Center, is ENSG’s first skilled nursing facility in Tennessee. ... The other acquisition, the 125-bed Hearthstone Health and Rehabilitation facility in Nevada, is likely to boost its footprint in the region. The acquisition deals have increased Ensign's portfolio to encompass 299 healthcare operations spanning 14 states. Of the total, 27 also have senior living operations. 

Brookdale Sells 20% Stake in Hospice, Home Health JV with HCAHospice NewsDecember 27, 2023Brookdale Senior Living has sold its remaining 20% stake in its hospice, home health and therapy joint venture with HCA Healthcare for $27 million. The company did not name the buyer. The joint venture formed in 2021 when the senior housing operator sold an 80% stake in its health care services segment to HCA, a large hospital operator, in a $400 million transaction. 

Following failed merger, Putnam’s Day Kimball sells home-care business to Cheshire firmCT Insider, 12/22/23Cheshire, CT—Putnam’s Day Kimball Healthcare sold its home-health division to Cheshire-based Assisted Living Services Inc., the companies announced on Thursday. The approximately 150 clients of Day Kimball Homemakers have been transferred and all of the 25 workers have been offered jobs at Assisted Living Services.

Froedtert, ThedaCare to launch combined system Jan. 1Becker’s Hospital ReviewDecember 19, 2023Milwaukee-based Froedtert and Neenah, Wis.-based ThedaCare have finalized their merger agreement and will launch as a combined 18-hospital system Jan. 1.

Brandywine Living acquired by Retirement Unlimited Inc.McKnight’s Senior LivingDecember 20, 2023Mt. Laurel, NJ-based Brandywine Living’s senior living management platform is being acquired by Roanoke, VA-based Retirement Unlimited Inc., RUI announced Wednesday. Following the transaction, the combined company will consist of 59 communities with more than 6,739 independent living, assisted living and memory care units. 

John Muir, Tenet hospital deal collapses following FTC lawsuitHealthcare DiveDecember 19, 2023John Muir Health will not acquire San Ramon Regional Medical Center from Tenet Healthcare following a lawsuit from the Federal Trade Commission filed last month. The FTC announced on Monday it dismissed its lawsuit seeking to block John Muir’s acquisition after the hospital systems agreed to terminate the deal last week. 

FTC, DOJ finalize merger guidelines that could impede healthcare M&AHealthcare DiveDecember 19, 2023Federal antitrust agencies on Monday finalized stricter guidelines for mergers and acquisitions that could make it more difficult for healthcare deals to close. The guidelines lay out a framework that the Department of Justice and Federal Trade Commission use when reviewing proposed deals and that the courts can reference in overseeing challenges. 

Private Equity—The Metastasizing Disease Threatening Health CareHealth AffairsDecember 18, 2023In 2010, when purchasing Prospect Medical Holdings, the private equity firm Leonard Green and Partners made numerous lofty promises to state regulators around expanding services, capital investments, and modernization. They assured regulators they would not only maintain hospitals but would increase the quality of care. Over the course of its 10-year ownership, Leonard Green broke many of the promises made to regulators.Editor's Note: This article articulates some of the challenges that can occur when private equity moves into the healthcare space.

Cigna ends Humana merger talks, plans $10B stock buyback: WSJCigna announced a $10 billion increase in its stock buyback program, including repurchasing at least $5 billion of shares in 2024's first half.

HCA violated terms of Mission Health deal, state AG allegesModern HealthcareDecember 14, 2023HCA Healthcare allegedly breached the terms of the agreement it made with North Carolina when it purchased Mission Health four years ago, according to a lawsuit the state filed Thursday. North Carolina Attorney General Josh Stein (D) alleges the for-profit, Nashville, Tennessee-based health system has cut staffing at Mission Health facilities, leading to delays in emergency and cancer care and a decline in quality, according to the complaint filed in Buncombe County Superior Court. 

The Vistria Group, Centerbridge Partners Reportedly Weighing Help at Home SaleHome Health Care NewsDecember 12, 2023The Vistria Group and Centerbridge Partners are “weighing options” around the future of Help at Home, including a potential sale. Bloomberg first reported the news late Tuesday, citing “people with knowledge of the matter.” Based in Chicago, Help at Home is one of the largest providers of home- and community-based services in the country. It has more than 180 branch locations across 11 states, and provides care to more than 66,000 people via its 53,000 caregivers. 

UC San Diego Health Completes $200 Million Purchase of Alvarado HospitalSan Diego Union-TribuneDecember 12, 2023UC San Diego Health Monday completed the purchase of Alvarado Hospital Medical Center from Prime Healthcare, adding the 302-bed medical facility to its network of clinics and hospitals. ... The university hospital system purchased Alvarado Hospital for $200 million.