Trinity Health Mid-Atlantic abandoned its plan to acquire Tower Health's Chestnut Hill Hospital in January 2022, part of a broader trend where over 29 hospital mergers, acquisitions, and partnerships were called off in recent years. Notable cancellations include Community Health Systems' $120 million sale of Commonwealth Health and Novant Health's $320 million acquisition of two hospitals, both facing regulatory hurdles. Other significant deals, such as the merger between Presbyterian Healthcare Services and UnityPoint Health, were also terminated after extensive negotiations.
Aegis Ventures' digital consortium is expanding, with UPMC Enterprises and Vanderbilt Health joining to co-develop and scale health tech solutions. The initiative aims to empower health systems to lead innovation, tackle common challenges, and enhance patient experiences through collaboration and advanced technologies.
Independent practices are increasingly merging or selling to larger health systems to negotiate better payment rates and manage regulatory burdens, with a 46% rise in hospital-owned physician practices since 2012. However, this consolidation trend raises concerns about reduced competition, higher costs, and diminished physician autonomy, as many smaller facilities may close due to market overlap. The Federal Trade Commission has intensified scrutiny of these mergers, blocking several high-profile deals since 2020.
Providence CEO Rod Hochman declared "old-school M&A is dead," emphasizing a shift away from traditional hospital acquisitions. Instead, Providence is focusing on collaboration and transformation, exemplified by its role in Longitude Health, a partnership aimed at addressing key healthcare challenges. The health system is also expanding into ambulatory care and enhancing revenue cycle management through strategic partnerships.
Multiple healthcare organizations are facing significant layoffs due to financial challenges. Texas Children's Hospital is cutting 1,000 jobs, while Novant Health plans to lay off 171 workers, and University Hospitals will eliminate over 300 positions. Other systems, including CarePoint and Kaiser Permanente, are also restructuring or closing facilities, leading to further job losses.
Tenet Healthcare reported a strong third quarter, with net profit rising to $472 million and revenue reaching $5.12 billion, up 1.2% year-over-year. The company continues to reshape its portfolio, selling 14 hospitals for nearly $4.8 billion, while focusing on high-acuity services and expanding its ambulatory business. Adjusted EBITDA increased 14.5% to $978 million, prompting an uplift in the 2024 financial outlook.
Longitude Health has been established by Baylor Scott & White Health, Memorial Hermann Health System, Novant Health, and Providence to enhance healthcare solutions for patients. Led by CEO Paul Mango, the organization aims to invest in performance solutions over the next five years, focusing on cost, quality, access, and patient experience. The initiative seeks to attract additional high-performing health systems to join its mission of delivering high-quality, affordable healthcare.
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