Record-breaking mergers and acquisitions hit hospitals
It seems recently that mergers and acquisitions fill the healthcare landscape these days.
Yesterday, Community Medical Center in Scranton, Pa., signed an agreement to merge with Geisinger Health Systems to become the Geisinger Community Medical Center, according to the Scranton Times Tribune. Geisinger plans to invest $158.6 million into the merged organization during the next seven years. The hospital reported that there will be no resulting layoffs.
In the same area, Moses Taylor Hospital will sell its facilities to Community Health Systems, which will invest $60 million during the next five years toward improvements, according to the article.
Community Medical Center and Moses Taylor Hospital had been the two remaining independent hospitals in the area, now joining larger systems in pursuit of financial security for infrastructure improvements, notes the article.
In Massachusetts yesterday, Northeast Health System with hospitals in Beverly, Gloucester, and Lynn signed an affiliation agreement with Lahey Clinic of Burlington (an affiliate of Tufts Medical School), reports The Boston Globe. The new name will be the Lahey Health System, and no word about layoffs has been reported, according to the Associated Press. Lahey is currently in preliminary talks to merge with Beth Israel Deaconess Medical Center in Boston.
In the past second quarter, healthcare mergers and acquisitions broke records in terms of dollar value, according to Irving Levin Associates, reports FierceHealthFinance. In the past quarter, there have been 139 transactions regarding healthcare services (including hospitals), representing 57 percent of all deals. There have 32 hospital transactions, representing 5 percent of the total dollar value of all deals.
To learn more:
- read the Scranton Times Tribune article
- read the AP article
- read The Boston Globe article
- read the FierceHealthFinance article
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