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Oct 28 2026
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Mergers and Acquisitions: An Overview of Notable Healthcare M&A Activity in 2026

Strong M&A activity continued in Q3 with organizations coming together to protect healthcare access.

Healthcare mergers and acquisitions remained strong in Q3 2026, with maintaining access to care amid rising costs being a major theme. Kaufman Hall expects this year to be the most active year for health provider M&As since the start of the pandemic.

“Organizations are increasingly pursuing partnerships that support future strategic priorities rather than scale alone,” said Courtney Midanek, managing director and M&A practice co-leader at Kaufman Hall in a press release. “Health systems across the industry are expanding networks, pursuing complementary capabilities and investing in expertise that supports long-term transformation.”

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Here is some of the notable M&A activity that occurred among healthcare providers in Q3 2026:

HealthPartners and Essentia Health

HealthPartners and Essentia Health, both Minnesota-based nonprofit health systems, announced a merger at the end of Q3. The combined organization will be called HealthPartners and will include 22 hospitals and more than 135 clinics, making it one of the region’s largest health systems. The transaction is expected to close Jan. 1, 2027.

Salem Health Hospitals and Clinics and Santiam Hospital and Clinics

On Sept. 1, Oregon-based health systems Salem Health Hospitals and Clinics completed its $61 million acquisition of Santiam Hospital and Clinics, a 40-bed hospital. Salem Health plans to invest millions of dollars into improving Santiam’s technology and infrastructure.

The Oregon Department of Justice approved the deal, which was granted an emergency exemption from the Oregon Health Authority’s review due to “an urgent threat to health care access in the region,” the department stated. According to Salem Reporter, Santiam hospital leaders said that the organization would be insolvent by September without emergency approval.

“This affiliation will strengthen and stabilize healthcare for the Santiam Canyon and surrounding communities,” said Santiam Hospital and Clinics CEO Maggie Hudson in a statement. “By joining Salem Health, we are ensuring that local families continue to have health care close to home.

Adena Health and Fairfield Medical Center

Adena Health acquired Fairfield Medical Center, located in Lancaster, Ohio, on Sept. 1. Fairfield Medical Center will now be known as Adena Fairfield Medical Center.

“At its heart, healthcare is people helping people,” said Matt Wideman, chair of the Fairfield Medical Center Board of Directors in a press release. “Our people and the care they provide remain at the center of what we do, now with the additional resources, expertise, and scale that come with joining a larger health system. We believe this is the right decision for our patients, our people, and the communities who depend on us for their care.”

The deal followed the Federal Trade Commission’s blocking of an earlier proposed sale of Fairfield Medical Center to OhioHealth due to antitrust laws.

“Commission staff’s investigation of OhioHealth’s proposed acquisition of FMC raised serious competitive concerns: the proposed transaction risked raising costs and reducing the quality of care for Ohioans,” said a statement by the FTC.

Intermountain Health and Surgery Partners

In September, Intermountain Health purchased Surgery Partners’ ownership interests in Mountain View Hospital and Idaho Halls Community Hospital, both located in Idaho, for $797 million in gross proceeds and $587 million in net cash proceeds.

“While our Idaho Falls partnerships have been a large and successful part of our Company’s growth story, these unique facilities are best positioned for their next chapter of growth with an outstanding regional health system like Intermountain,” said Eric Evans, CEO of Surgery Partners, in a statement earlier this year.

LEARN MORE: Rural healthcare navigates uncertainty amid budgetary concerns.

UC San Diego Health and Palomar Health

To stabilize and enhance patient care in North San Diego County, UC San Diego Health and Palomar Health formed a joint powers authority on July 1, allowing the two organizations to run hospitals and clinics jointly. The new health system, operating as Palomar UC San Diego Health, serves a region of nearly 1 million people. It is independent from UC San Diego Health.

The goal of the joint powers authority is to grow services and increase access to advanced specialty care, according to a press release.

“This new health system allows us to preserve and bolster local care while expanding access to expertise, innovation and new services that will benefit our communities for decades to come,” said Diane Hansen, CEO of the JPA.

Sanford Health and North Memorial Health

Sanford Health finalized its integration with North Memorial Health, a nonprofit health system based in Minnesota, in early September.

As a result of the deal, Sanford Health will invest approximately $100 million to modernize Robbinsdale Hospital, preserving its role as a Level I Trauma Center for the region. It will also invest approximately $500 million to expand Maple Grove Hospital, expand mental health services statewide, and invest in increased medical education and training programs.

“Healthcare is changing rapidly and meeting the needs of Minnesota’s communities will require us to think differently about how we deliver care and work together,” said Bill Gassen, president and CEO of Sanford Health, in a press release. “That’s what this partnership makes possible. By bringing together North Memorial Health’s deep roots in the communities it serves with Sanford Health’s capabilities as an integrated health system, we’ll strengthen and modernize Robbinsdale Hospital while building a more connected healthcare system that better serves patients across rural and urban Minnesota.”

Hill Valley Healthcare and Dominion Hospital

Hill Valley Healthcare completed its $25 million purchase of Dominion Hospital in Falls Church, Va., from HCA Healthcare in early September. The purchase of Dominion Hospital, a freestanding behavioral health hospital, allows Hill Valley to enter the behavioral health market, according to a statement.

Vandalia Health and Grafton City Hospital

Grafton City Hospital, in Grafton, W.Va., joined Vandalia Health on Sept. 1. It is now known as Vandalia Health Grafton Hospital. Vandalia Health member Mon Health has been managing the hospital since 2019, according to a statement.

“Bringing Grafton City Hospital fully into Vandalia Health builds on a partnership that has already demonstrated the value of working together to strengthen healthcare in our communities,” said Jeff Sandene, President and CEO of Vandalia Health. “Grafton is an important part of our broader commitment to ensuring communities across West Virginia have access to quality care close to home, supported by the resources, expertise and capabilities of a multi-state health system. As Vandalia Health Grafton Hospital, we have an opportunity to build on the hospital’s strengths, expand connections across our network and ensure it remains a strong healthcare resource for this community for years to come.”

Dr. John Joyce
By expanding services, modernizing facilities, and creating more opportunities for medical education and training, it will improve patient care and help build the healthcare workforce our communities need.”

Dr. John Joyce U.S. Congressman, Pennsylvania's 13th Congressional District

Baptist Health and Magnolia Regional Medical Center

Baptist Health officially acquired Magnolia Regional Medical Center in Magnolia, Ark., in mid-July. The 25-bed hospital is now known as Baptist Health Medical Center-Magnolia.

“We are thrilled to have Magnolia Regional join Baptist Health. While it is an extremely challenging time to operate community hospitals, we have a proven track record of operating rural hospitals successfully in Arkansas,” said Troy Wells, president and CEO of Baptist Health, in an earlier statement. “When we are asked to help communities with their hospital, we consider the needs of that community and determine if our resources and capabilities can make it successful.”

University of Mississippi Medical Center and Greenwood Leflore Hospital

University of Mississippi Medical Center assumed ownership of Greenwood Leflore Hospital in Greenwood, Miss., on Aug. 1. The hospital is now known as UMMC Greenwood. The deal ensures that essential health services remain available to the region.

“We will build upon the services UMMC already provides locally, including obstetrics and gynecology, internal medicine and pediatrics, and an AirCare helicopter base,” said Dr. Alan Jones, associate vice chancellor for health affairs, in a press release. “We look forward to providing the highest quality health care to the people of Greenwood and the surrounding region as part of our commitment to improving the health of Mississippians.”

Atrium Health and WakeMed Health

Atrium Health has received the backing of the Wake County Board of Commissioners in its proposed acquisition of WakeMed Health, according to Axios Raleigh. This follows Atrium’s letter to North Carolina Gov. Josh Stein, which addressed issues raised by his office regarding the deal.

In the letter, Atrium Health explained how it would maximize its planned $2 billion investment over 15 years, including revitalizing the Raleigh campus and expanding specialty care. The health system also agrees to cap annual reimbursement rate increases to 1.5 times the annual Medicare reimbursement increases while also improving financial assistance for indigent patients.

NYC Health + Hospitals and Maimonides Health

Maimonides Health’s plan to join NYC Health + Hospitals is moving forward after approval from the New York State Public Health and Health Planning Council. The transaction, first announced in December 2025, requires additional approvals.

“We are grateful that the Public Health and Health Planning Council approved the application to allow Maimonides to join NYC Health + Hospitals, bringing us one step closer to securing the financial support we need to maintain and expand the outstanding care our communities have come to rely on,” said Ken Gibbs, president and CEO of Maimonides Health, in a press release. “By joining NYC Health + Hospitals, Maimonides will receive more than $2.2 billion in grant funding over five years, including more than $500 million to adopt a state-of-the-art electronic health record system, upgrade labor and delivery spaces, and make other needed capital improvements. We hope to receive final regulatory and legal approvals this fall.”

AdventHealth and Intermountain Health

AdventHealth and Intermountain Health signed a definitive agreement in August to create a joint venture with the goal of improving care access in the greater Denver metro area, according to an announcement.

The deal will create a partnership among AdventHealth’s Denver-area hospitals and three Intermountain hospitals along with offsite emergency and urgent care centers, medical practices, and related physician practices and clinics. AdventHealth will manage and lead daily operations. The transaction is expected to close early next year.

“We are excited about the prospect of a joint venture that would expand access to high-quality care and create a more connected experience for patients and care teams across the greater Denver area,” said Rob Allen, president and CEO of Intermountain Health.

WVU Health System and Fulton County Medical Center

Fulton County Medical Center, a 21-bed critical access hospital in McConnellsburg, Pa., plans to join the West Virginia University Health System in January 2027. The two organizations signed a definitive affiliation agreement in August.

WVU Health System plans to invest up to $17 million over the next seven years to modernize FCMC, according to a press release. That investment will focus on installing Epic as well as integrating the hospital’s electronic medical records and revenue cycle management systems with those of the health system.

“By expanding services, modernizing facilities, and creating more opportunities for medical education and training, it will improve patient care and help build the healthcare workforce our communities need,” said Rep. John Joyce, M.D. “At a time when underserved communities continue to face physician shortages, encouraging doctors to train close to home, and to practice where they train is more important than ever. Since coming to Congress, developing a stable pipeline of talented healthcare professionals has been a top priority, and I look forward to strong continuation of my Homegrown Health Care Initiative.”

Wellstar Health System and Stephens County Hospital

Georgia-based organizations Wellstar Health System and Stephens County Hospital, a 96-bed acute-care hospital, have entered into an agreement for Stephens to join Wellstar by the end of 2026, according to an announcement.

“We look forward to working together to build on the strong foundation already in place while creating new opportunities for the community through expanded access to specialized care, innovative services and the strength of an integrated health system,” said Wellstar President and CEO Ketul J. Patel.

Parkview Health and Witham Health Services

Indiana-based nonprofit health systems Parkview Health and Witham Health Services signed an affiliation agreement, which they expect to finalize in January 2027.

“This partnership represents an important opportunity to build on Witham’s strong foundation of local care while connecting providers and patients with the clinical resources and scale of Parkview Health,” said Dr. Ray Dusman, president of physician and clinical enterprise at Parkview Health in a statement. “Together, we can support physicians and care teams with expanded access to specialty expertise, world-class clinical care technology, and coordinated, shared services to lower costs, while ensuring patients in Boone County and surrounding communities continue to receive the compassionate, high-quality local care they trust.”

Kettering Health and Knox Community Hospital

Mount Vernon, Ohio-based Knox Community Hospital plans to join Kettering Health. The two organizations signed a nonbinding letter of intent in late July. The transaction is expected to be complete by the end of the year. The deal will include investments by Kettering Health into implementing a new electronic health records system.

“We spent months reviewing proposals, asking questions, meeting with potential partners and evaluating what each organization could mean for the future of care in this community,” said  Marc Odenweller, chairman of the hospital’s board of trustees, in a statement. “Kettering Health is recognized for outstanding outcomes, quality of care and dedication to promoting and supporting a healthy life for their patients. After careful review, we believe Kettering Health offers the commitment, resources and focus on quality that we were seeking to support and enhance local care for many years to come.”

Ascension Saint Thomas and Williamson Health

Ascension Saint Thomas will move forward with its plans to acquire Williamson Health in Franklin, Tenn., after a unanimous vote of approval from the nonprofit regional health system’s governing board. The deal, valued at nearly $1 billion, likely won’t be complete until 2027 or 2028. It includes significant capital investments, electronic health record upgrades and plans to expand care offerings and access.

“While the transaction moves through the approval process, Williamson Health will continue to operate independently as we do today — with the same commitment to our mission of caring for our patients while also supporting and investing in our team members,” said Williamson Health CEO Phil Mazzuca in a statement.

Allegheny Health Network and Heritage Valley Health System

Heritage Valley Health System, based in Beaver, Pa., joined Allegheny Health Network at the start of Q3. The deal includes two hospitals and dozens of clinical locations, according to an announcement, as well as a $285 million investment over the next 10 years to improve IT infrastructure (including a migration to Epic), clinical services and facilities.

Heritage Valley Beaver and Heritage Valley Sewickley have been rebranded as AHN Beaver Hospital — Heritage Valley and AHN Sewickley Hospital – Heritage Valley.

“This affiliation secures the future of Heritage Valley, by not only preserving, but significantly strengthening the tradition of caring and clinical excellence that has defined our health system, and its people, for more than a century,” said Norm Mitry, Heritage Valley president and CEO.

EXPLORE: Here are three tips for healthcare IT teams on navigating due diligence.

Saint Raphael Health and First Baptist Medical Center

Saint Raphael Health acquired First Baptist Medical Center in Dallas at the end of July. The hospital, which includes five surgical operating rooms, four inpatient rooms and four intensive care unit rooms, now operates as St. Raphael – Dallas with new ownership and management, according to a statement.

“Our priority is to make the hospital feel organized, responsive, and human,” said Don Vickers, CEO of St Raphael Health – Dallas. “That means stronger systems behind the scenes, but it also means people should know how to engage with us and feel comfortable reaching out if they need anything.”

Erlanger Health System and Prisma Health

Erlanger Health System, based in Chattanooga, Tenn., signed a nonbinding letter of intent to join Prisma Health. The deal includes $2 billion in planned capital investments to enhance specialty care access and update facilities.

The deal is subject to approval. Once completed, Prisma Health plans to establish a regional headquarters in Chattanooga, according to a press release.

UW Health and Marshfield Medical Center-Beaver Dam

In July, UW Health reached an agreement with Marshfield Medical Center-Beaver Dam to acquire the hospital from Sanford Health. The deal will expand coordinated care access and specialty services for patients in Beaver Dam, Wis. The transaction is expected to close before the end of the year, according to a press release.

Wellstar Health System and Mountain Lakes Medical Center

In August, Wellstar Health System announced that it had completed its acquisition of Georgia-based Mountain Lakes Medical Center. The 25-bed critical access hospital is now known as Wellstar Mountain Lakes Medical Center.

Fauquier Health and Bon Secours Mercy Health

Fauquier Health, a 97-bed hospital in Warrenton, Va., is set to join HealthSpan Partners, a network partner of Bon Secours Mercy Health, according to a Fauquier Times article. The transaction is expected to be finalized before the end of the year.

University of Kansas Health System and St. Francis Campus

In late September, the University of Kansas Health System announced that it plans to acquire full ownership of St. Francis Campus in Kansas City, Kan., which was previously managed by Ardent Health. This follows a nearly 10-year partnership between the two organizations. The deal is expected to close by the end of 2026.

“We’re proud of what this partnership has made possible for St. Francis and the Topeka community,” said Dave Caspers, president and CEO of Ardent Health, in a statement. “We regularly evaluate our portfolio to ensure we’re focusing our resources where our operating model, scale and capabilities can have the greatest impact and create long-term value. This transition reflects that approach, while positioning St. Francis to become more fully integrated with Kansas’s largest academic health system.

American Medical Administrators and Fitzgibbon Hospital

American Medical Administrators took ownership of Fitzgibbon Hospital in Marshall, Mo., following approval by the U.S. Bankruptcy Court. The 60-bed hospital filed for Chapter 11 bankruptcy in May but remained open.

“Healthcare is vital to the well-being of every community, and our immediate priority is ensuring continuity of care while we work alongside the Fitzgibbon team to evaluate operations and establish a sustainable path forward,” said Nick DeStefane, CEO of AMA, in a statement. “Fitzgibbon Hospital has a long history of serving this region, and we are committed to preserving access to high-quality healthcare while positioning these operations for long-term stability.”

Huntsville Hospital Health System and Lakeland Community Hospital

Huntsville Hospital Health System has entered an affiliation agreement to provide financial support, strategic guidance and resources for Lakeland Community Hospital in Haleyville, Ala. The 25-bed hospital will continue normal operations.

“We needed Huntsville Hospital Health System, and we are grateful they answered,” said Cherie E. Sibley, president and CEO of Lakeland Community Hospital, in an announcement. “Our goal has always been to make sure Lakeland can thrive, not just survive. This affiliation gives us the support we need to reach long-term stability and continue caring for our neighbors while maintaining the local leadership and community focus our patients know and trust.”

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Here is some of the notable M&A activity that occurred among healthcare providers in Q2 2026:

Ascension and AMSURG

Ascension, a Catholic nonprofit health system completed its $3.9 billion acquisition of AMSURG, an ambulatory surgery center services company, in June. To complete the transaction, the Federal Trade Commission required that Ascension divest seven AMSURG locations in Nashville, Tenn.; Panama City, Fla.; Tulsa, Okla.; Waco, Texas; and Wichita, Kan.

“The FTC’s action ordering divestitures of surgical care centers will help preserve a competitive market that will allow patients to get the care they need at a fair price,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition.

According to a statement, the deal expands Ascension’s network to 300 ambulatory surgery centers nationwide.

“By expanding our ambulatory surgery capabilities, we are making care more accessible, convenient, and affordable for patients, while ensuring our hospitals remain focused on highly specialized acute care. Together, we are building a more integrated, future-ready health system,” said Eduardo Conrado, president and CEO of Ascension.

Atrium Health and WakeMed

In early May, North Carolina–based health systems Atrium Health and WakeMed announced an agreement to combine. According to a press release, the deal would include a $2 billion investment in Wake County to redevelop the Raleigh Campus, expand Cary Hospital and North Hospital, and construct two new Healthplex locations. In addition, the combination will create 3,300 new jobs, expand healthcare service and form the largest nonprofit mental health network in the state.

According to an article from The Assembly, UNC sent an offer that included $5 billion in investments. WakeMed rejected it in favor of the Atrium Health.

Sutter Health and Allina Health

Allina Health, a Minneapolis-based nonprofit health system, will join Sutter Health, a California-based system, with closing anticipated by the end of the year pending regulatory approval. The systems signed a letter of intent in May.

As a result of the deal, the combined health system will invest more than $2 billion in Minnesota and western Wisconsin, according to a press release. That investment will include the establishment of new ambulatory care locations, artificial intelligence initiatives and modernized scheduling.

Upon closing, Allina Health will become Sutter Health’s Upper Midwest Division while maintaining its name, brand and Minneapolis headquarters.

“When Allina Health joins Sutter Health, we look forward to making significant investments that improve care access and patient experience in Minnesota and western Wisconsin communities. This includes establishing new ambulatory and specialty care sites to fill care gaps and meet growing community needs, as well as recruiting more physicians and enhancing AI and digital health capabilities,” said Warner Thomas, president and CEO of Sutter Health, who will continue to lead the combined system.

Sanford Health and North Memorial Health

Sanford Health plans to combine with North Memorial Health, a nonprofit health system based in Minnesota, creating a single nonprofit health system before the end of the year. The two organizations signed a definitive agreement in May.

The combined system will invest $600 million in its Robbinsdale and Maple Grove hospitals in Minnesota.

“Guided by our charitable mission, we are committed to meeting the evolving healthcare needs of the region — including sustaining Robbinsdale Hospital as a critical safety-net provider of Level 1 trauma and emergency services and investing in expanded capacity and outpatient care at Maple Grove Hospital to meet rising demand in one of the metro’s fastest-growing communities. Our approach is to partner with local leaders, understand community needs and invest for the long term,” said Bill Gassen, president and SEO of Sanford Health in a statement.

Gassen will operate as president and CEO of the combined organization.

CommonSpirit and UPMC

In May, CommonSpirit signed a definitive agreement to sell Ohio-based Trinity Health System to University of Pittsburgh Medical Center (UPMC). The transaction is expected to be completed in fall 2026 pending regulatory review.

“Trinity Health System and UPMC share a commitment to providing top-tier care and serving the most vulnerable members of our community,” said Dwayne Richardson, interim market president of Trinity Health System in a statement. “UPMC's proven track record of community service and compassionate approach to care were key factors in our decision, and will significantly benefit our patients.”

Aveanna Healthcare Holdings and Family First Homecare

Aveanna Healthcare Holdings, a home healthcare company, has acquired Family First Homecare, a pediatric home-care provider with 27 locations in seven states, for $175.7 million.

“Family First Homecare is a perfect fit for us. The Family First team is committed to delivering high-quality and patient-centered clinical care that produces exceptional outcomes for patients and families,” said Jeff Shaner, CEO of Aveanna, in a press release. “Adding to our care in key geographies brings us greater density in important states while reinforcing our strategic mission to deliver high-quality care. We’re excited to complete this transaction and continue our story of growth and exceptional care together.”

Albert L. Wright Jr.
This partnership is about preserving and expanding access to high-quality healthcare close to home.”

Albert L. Wright Jr. President and CEO, WVU Health System

WVU Health System and Independence Health System

The West Virginia University Health System has signed a definitive agreement to acquire Independence Health System, located in western Pennsylvania. The deal is expected to close in late September or early October 2026 and includes $800 million in planned investments across Independence Health System’s five hospitals, according to a press release. The investments will be focused on a new electronic health record system, facility upgrades and expansions and enhanced clinical capabilities.

“This partnership is about preserving and expanding access to high-quality healthcare close to home,” said Albert L. Wright Jr., president and CEO of the WVU Health System. “By bringing our organizations together, we can strengthen services throughout southwestern Pennsylvania while enhancing opportunities for clinical collaboration, recruitment, research, education, and specialty care access.”

Lifepoint Health and ScionHealth

Lifepoint Health has acquired eight community hospitals from ScionHealth. In a press release, ScionHealth cites its desire to concentrate on specialty hospital services as a major driver of the decision.

The hospitals include Bolivar Medical Center (Cleveland, Miss.), Ennis Regional Medical Center (Ennis, Texas), Livingston Regional Hospital (Livingston, Tenn.), Logan Regional Medical Center (Logan, W.Va.), Palestine Regional Medical Center (Palestine, Texas), Parkview Regional Hospital (Mexia, Texas), St. Joseph Regional Medical Center (Lewiston, Idaho) and Watertown Regional Medical Center (Watertown, Wis.).

Parkview Health and Witham Health Services

Witham Health Services has signed a non-binder letter of intent to join Parkview Health, both located in Indiana, by the end of the year.

“It was important to choose a system that shares our values and our mission to improve the health of our community. We wanted a leader in quality, and we’ve found that at Parkview,” said Kelly Braverman, Witham president and CEO in a press release. “We are also impressed by Parkview’s nationally recognized patient experience and workplace culture and are excited about the potential to expand services, enhance clinical capabilities, and improve access for patients in and around Boone County.” 

Huntsville Hospital Health System and Community Health Systems

In April, Community Health Systems divested Crestwood Medical Center in Huntsville, Ala., to Huntsville Hospital Health System for $459 million, according to a press release.

Orlando Health and RMC Health System

On April 8, Orlando Health announced plans to acquire RMC Health System, located in Anniston, Ala., which includes a 375-bed medical center, outpatient facilities and specialty practices. The transaction is expected to be completed in fall 2026. Orlando Health plans to invest significant resources, including a new electronic health records system, into RMC over the next five years, according to a statement.

“RMC is an important addition to Orlando Health’s growing presence in Alabama and strengthens our ability to serve patients across the region,” said Thibaut van Marcke, senior vice president of Orlando Health, Alabama Region. “By bringing RMC into the Orlando Health system, we can expand services and collaborate with physicians and team members to enhance access to high-quality care for communities throughout Northeast Alabama.”

Deaconess Associations and HCA Healthcare

Deaconess Associations will acquire 31 home health and hospice locations in eight states from HCA Healthcare, according to a press release. The organizations will join Deaconess subsidiary Central Pyramid.

“This agreement allows us to deepen our current presence and expand our geographic reach through established home health and hospice agencies that align with our mission and long-term strategy,” said Trey Crabb, CEO of Deaconess Associations.

Baystate Health and Trinity Health of New England

Baystate Health and Trinity Health of New England signed a definitive agreement at the end of April to have Mercy Medical Center, located in Massachusetts, join Baystate Health.

According to a press release, “Like many other health care providers, Mercy has faced significant challenges and financial pressures that threatened its long-term viability.”

Inadequate care reimbursement, declining payment rates and staffing shortages contributed to the move.

“Our decision to transition Mercy to Baystate Health reflects our shared aim to ensuring that patients continue to have access to high-quality care. We are confident that Baystate Health will honor Mercy’s legacy and strengthen its ability to meet the evolving needs of the community,” said Montez Carter, president and CEO of Trinity Health of New England.

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Prime Healthcare and Franciscan Health Olympia Fields

In April, Prime Healthcare announced that it has received approval from the Illinois Health Facilities and Services Review Board to acquire 214-bed Franciscan Health Olympia Fields, located in Olympia Fields, Ill. The deal closed in May, making the newly branded Olympia Fields Hospital Prime Healthcare’s 55th hospital, according to a statement. It also included the addition of Specialty Physicians of Illinois to the health system.

Prime Healthcare also plans to contribute $5 million to Franciscan’s medical education expansion initiative.

CHRISTUS Health and Titus Regional Medical Center

In May, CHRISTUS Health, a nonprofit health system in Texas, began operations at Titus Regional Medical Center. The hospital is now called CHRISTUS Health – Mount Pleasant Hospital. According to a statement, the health system also opened the CHRISTUS Health Mount Pleasant Emergency Care Center, which includes a multispecialty clinic.

Monument Health and Rapid City Medical Center

Monument Health, based in Rapid City, S.D., added Rapid City Medical Center to its health system on May 1.

“Joining Monument Health means our patients will have access to even greater resources and a deeper network of care, while continuing to see the providers they know and trust right here at home,” said Jay Hammerquist, Rapid City Medical Center CEO, in a press release.

Wellstar Health System and Mountain Lakes Medical Center

Wellstar Health System, a nonprofit system in the Metro Atlanta area, has finalized an agreement to acquire Mountain Lakes Medical Center, a 25-bed critical access hospital located in Clayton, Ga. The transaction was expected to close on Aug. 1.

“We believe joining Wellstar creates exciting opportunities to build on that success while connecting our patients and clinicians to additional expertise, technology, specialty resources and healthcare capabilities that can help support the future of healthcare in northeast Georgia,” said Mountain Lakes Medical Center CEO Kristy Hall in a press release.

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Freeman Health System and Northwest Health

Freeman Health System, with locations in Missouri, Arkansas, Oklahoma and Kansas, completed its acquisition of Northwest Health, located in Northwest Arkansas, from a Community Health Systems subsidiary, according to a statement.

The deal includes four medical centers as well as several outpatient centers and physician practices. Long-term goals include increased access to behavioral healthcare and maternal care as well as the expansion of specialty care services such as cardiology, oncology and orthopedics.

UNC Health and Onslow Memorial Hospital

Onslow Memorial Hospital, located in Jacksonville, N.C., will integrate with UNC Health in a three-stage plan over the next four years. UNC Health plans to invest more than $150 million to modernize technology and infrastructure, according to a press release. The integration will give Onslow Memorial Health patients access to enhanced care with improved, systemwide connectivity.

According to an article from WITN, the first stage of the plan was effective July 1 when UNC Health acquired a 30% membership interest in the hospital. In the second stage, UNC Health’s membership interest will increase to 49%. In the final stage, targeted for 2029, UNC Health will be the sole member of Onslow Memorial Hospital.

East Alabama Health and Bullock County Rural Emergency Hospital

On June 1, East Alabama Health announced that it would be stepping in to operate and manage Bullock County Rural Emergency Hospital, located in Union Springs, Ala., following the departure of its previous operator. East Alabama Health moved quickly to ensure “the continued availability of critical health care services for residents in and around Bullock County,” according to a statement.

“Our focus is on stabilizing operations, strengthening local access to care and building a sustainable model that allows Bullock County residents to receive high-quality care close to home. We are committed to working alongside local leadership, providers and the community to support the hospital’s long-term success,” said Joseph Marchant, executive vice president and chief integration and network development officer at East Alabama Health.

Baptist Memorial Health Care and Merit Health Rankin

Baptist Memorial Health Care, based in Memphis, Tenn., is taking on the lease for Merit Health Rankin, a hospital located in Brandon, Miss., sometime in the second half of 2026. According to a press release, Baptist Memorial plans to invest $70 million in the 134-bed hospital to enhance services.

Quorum Health and Banner Lassen Medical Center

Quorum Health has signed an asset purchase agreement to take over Banner Lassen Medical Center, located in Susanville, Calif., from Banner Health. The transaction will be completed in December, pending regulatory approvals. At that time, the medical center will become a nonprofit entity.

“An organization with experience operating rural health care within California and a dedication to supporting local teams is the ideal partner to serve this community's health care needs while preserving access to care close to home,” said Margo Karsten, the senior vice president of acute care deliver for Banner Health’s Western Division, in a press release.

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Novant Health and Community Hospital of Stokes

Novant Health has taken over operation of Community Hospital of Stokes, a 53-bed critical access hospital in Danbury, N.C. According to a press release, the Stokes County Board of Commissioners began a search for “a new healthcare partner to purchase or lease and operate the county-owned hospital.” Novant was selected in March 2026 and took over the hospital on June 1.

University of Arkansas for Medical Sciences and Encore Medical Center

The University of Arkansas for Medical Sciences will lease and operate Encore Medical Center, a 53-bed hospital in Bryant, Ark. The hospital, which is currently operated by Arkansas Heart Hospital, will officially be under UAMS’s operational authority on Oct. 1, according to a press release.

Arkansas Heart Hospital opened the location in 2021 to offer bariatric weight loss surgery and care for peripheral vascular disease. Encore Medical Center includes emergency services and inpatient care while also offering intensive care, surgical, imaging and laboratory services.

“Our goal is a seamless transition for Saline County,” said Dr. C. Lowry Barnes, chancellor for UAMS. “The team currently at Encore Medical Center is experienced and dedicated, and we look forward to working closely with them during this transition.”

Baptist Health and South Arkansas Regional Hospital

South Arkansas Regional Hospital of El Dorado, Ark., formally joined Arkansas-based health system Baptist Health on June 15. The 151-bed hospital will now operate as Baptist Health Medical Center-El Dorado.

Hackensack Meridian Health and Hunterdon Health

Hackensack Meridian Health and Hunterdon Health may be headed toward partnership. The two New Jersey-based organizations signed a letter of intent in June, explaining in a press release that the proposed partnership would enhance patient care, expand services and accelerate innovation.

According to the statement, “United by a shared commitment to transforming health care, Hackensack Meridian Health and Hunterdon Health will use their shared resources, expertise, and advanced technologies to expand and support a comprehensive health care delivery system focused on health outcomes, investment in clinical research, academic and community benefit programs, and quality care that is human-centered, accessible, and affordable.”

Providence Queen of the Valley Medical Center and NorthBay Health

Providence will transfer ownership of Queen of the Valley Medical Center in Napa, Calif., to NorthBay Health based on a definitive agreement signed in April. As part of the deal, which is expected to close by the end of the year, NorthBay Health will invest in clinical services and community benefit programs, according to a press release.

“This agreement represents an important step toward expanding access, strengthening clinical services, and ensuring more people in the region benefit from high-quality, locally connected care,” said Mark Behl, president and CEO of NorthBay Health.

Randy Christophel
This is about growing and expanding our clinical capabilities to meet the healthcare needs of the region for the future.”

Randy Christophel President CEO, Goshen Health

Florida State University and the City of Tallahassee

In April, the City of Tallahassee completed the transfer of Tallahassee Memorial HealthCare to FSU Health, Florida State University’s academic health system.

According to a press release, the deal will expand medical education in addition to strengthening clinical care and medical research.

Parkview Health and Goshen Health

Indiana-based health systems Parkview Health and Goshen Health announced in June that they’ve signed an affiliation agreement to strengthen local healthcare access and expand services in Elkhart County, Ind., according to a press release. The organizations expect to finalize the affiliation in fall 2026 pending regulatory review.

“This is about growing and expanding our clinical capabilities to meet the healthcare needs of the region for the future,” said Randy Christophel, president CEO of Goshen Health.

Fairfield Medical Center and Adena Health

In June, Fairfield Medical Center, based in Lancaster, Ohio, and Adena Health, based in Chillicothe, Ohio, signed a nonbinding letter of intent to explore a formal partnership. The two nonprofit health systems announced that they will begin the due diligence process to evaluate compatibility. The goal of a partnership would be to expand services and strengthen access to high-quality care in the region. The organizations are still operating independently amid the review.

Ellis Medicine and St. Peter’s Health Partners

Two New York-based health systems, Ellis Medicine and St. Peter’s Health Partners, announced in June that they have agreed to discontinue exploration of a potential integration, concluding their management services agreement and professional services agreement, according to a press release. The original letter of intent was signed in 2020.

Ellis Medicine requested a proposal to re-evaluate the market due to changes in the healthcare industry since the letter of intent was signed, and St. Peter’s Health Partners declined.

“Our partnership with Ellis Medicine produced significant, measurable progress in a challenging healthcare environment,” said Dr. Steven Hanks, president and CEO of St. Peter’s Health Partners. “Together, we enhanced quality outcomes, strengthened core service lines, and helped restore financial stability. We are proud of the role our teams played in supporting Ellis and the Schenectady community. As we move forward, SPHP will continue to focus on strategic investments that expand access, improve patient experience, and meet the evolving needs of the communities we serve.”

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Here is some of the notable M&A activity that occurred among healthcare providers in Q1 2026:

Premise Health and Crossover Health

Premise Health completed its merger with Crossover Health in March. According to a press release, the combined organization will operate nearly 900 wellness centers across 47 states and Guam. The organization offers advanced primary care and occupational health services in addition to alternative payment models.

Centurion Foundation and Prospect Medical Holdings

In March, the Centurion Foundation completed its acquisition of Roger Williams Medical Center and Our Lady of Fatima Hospital, both located in Rhode Island, from Prospect Medical Holdings, which declared bankruptcy in January 2025. The deal was backed by the sponsorship of the Rhode Island Health and Education Building Corp., which raised $101 million, according to a press release.

CharterCARE Health of Rhode Island was created to provide local management and governance for the two hospitals.

“It has been an arduous journey to secure the future of these essential hospitals, their employees and physicians, and the patients who rely on them,” said Centurion Foundation CEO Ben Mingle. “This moment would not have been possible without the state’s approval and strong backing from Gov. McKee, Speaker Shekarchi, Senate President Lawson, Attorney General Neronha and members of the General Assembly. Our journey is far from over, but our acquisition is a new beginning for these valued institutions, one that is free from private equity influence and that is a strong foundation to continue a tradition of health care excellence and community focus.”

MUSC Health and Palmetto Primary Care Physicians

MUSC Health purchased Palmetto Primary Care Physicians, located in Charleston, S.C., for $111 million in early March. As part of the deal, PPCP will become a nonprofit entity.

“South Carolina faces a significant shortage of primary care physicians, and strengthening access to high‑quality, community‑based primary care is essential to MUSC Health’s mission,” said CEO Dr. Patrick J. Cawley, in a statement.

CommonSpirit Health and Altru Health System

The two organizations signed a letter of intent in January for a deal that would add three North Dakota-based hospitals in the former Catholic Health Initiatives system — CHI St. Alexius Health, CHI St. Alexius Health Turtle Lake and CHI St. Alexius Health Garrison — to Altru Health System’s portfolio.

“We look forward to working more closely with CommonSpirit to strengthen access to care for patients and families well into the future,” said Todd Forkel, Altru CEO, in a statement.

Shannon Health System and Quorum Health

Shannon Health System kicked off the year by announcing a plan to acquire Scenic Mountain Medical Center in Big Spring, Texas, from Quorum Health. According to a press release, this will be Shannon’s second recent acquisition in the area.

The deal will lead to an increase in primary care and specialty care space. The hospital will now be known as Shannon Medical Center Big Spring.

CONSIDER: Strengthen technology partnerships in healthcare mergers and acquisitions.

Community Health Systems and Tenor Health Foundation

Community Health Systems completed the divestiture of two hospitals located in Scranton, Pa., and one located in Wilkes-Barre, Pa., to nonprofit Tenor Health Foundation for $33 million in cash plus a $15 promissory note, according to a press release.

Tenor Health Foundation took over ownership of Regional Hospital of Scranton, Moses Taylor Hospital and Wilkes-Barre General Hospital on Feb. 1.

Prime Healthcare Foundation and Central Maine Healthcare

Central Maine Healthcare joined nonprofit Prime Healthcare Foundation in February. The deal includes Central Maine Medical Center, Bridgton Hospital, Rumford Hospital, Rumford Community Home, Bolster Heights, Maine College of Health Professions, CMH Cancer Care Center, and more than 40 physician practices, according to a statement.

The hospitals and additional locations will all retain their current names and local leadership. Prime Healthcare Foundation plans to invest $150 million over the next five years.

RWJBarnabas Health and Englewood Health

New Jersey-based Englewood Health has signed a definitive agreement to join RWJBarnabas Health. The deal includes Englewood Hospital in Englewood, N.J.

“This transaction will ensure Englewood Health’s ability to deliver world-class care to the communities we serve in a broader way, with greater resources and more cutting-edge technologies,” said Warren Geller, president and CEO of Englewood Health, in a statement.

Henry Ford Health and Trillium Health Care Management

In February, Henry Ford Health announced that it will transfer Madison Heights hospital in Madison Heights, Mich., to Trillium Health Care Management. According to a press release, Trillium plans to transform the location into an inpatient behavioral health center while Henry Ford Health will operate Madison Heights’ emergency department as a stand-alone site. Remaining inpatient and surgical services will be moved to Henry Ford Warren Hospital.

“This investment allows us to add much-needed inpatient beds now, with plans to grow to more than 100 inpatient beds in the near future,” said Aaryn Ebner, chief administrative officer at Trillium. “Alongside a fully renovated facility, we’re also developing partial-day and outpatient mental health programs to strengthen the full continuum of behavioral healthcare, ensuring patients receive comprehensive, high-quality care at every stage of treatment.”

Vanderbilt Health and Community Health Systems

In February, Vanderbilt Health acquired Tennova Healthcare-Clarksville Hospital in Clarksville, Tenn., from Community Health Systems. The deal also includes Tennova ER-Sango, a freestanding emergency room, in addition to physician clinics and outpatient services. Vanderbilt Health had a 20% stake in the 270-bed hospital starting in 2021, according to a press release.

The hospital will now be known as Vanderbilt Clarksville Hospital.

Carson Valley Health and Barton Health

After 25 years of joint ownership between Barton Health and Renown Health, Barton Health is now the sole governing member for Carson Valley Health in Carson Valley, Nev. The two organizations will remain separate entities according to a statement.

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