Healthcare Dealmakers—Centene's Magellan Rx divestiture; Sparrow joining University of Michigan Health and more

Healthcare mergers and acquisitions are in no short supply as providers, health tech companies, retailers and other industry players look to expand their businesses and gain a competitive edge. Here’s a roundup of new deals that were revealed, closed, rumored or called off during the month of December.


Cooper University Health Care and Cape Regional Health System signed a letter of intent to merge into a system of more than 10,000 employees and over $2.2 billion in annual revenues. The proposed system would comprise 900 licensed beds across the organizations’ two flagship hospitals, six urgent care centers and over 130 ambulatory locations across eight counties. The New Jersey-based systems said the deal “could take until the first quarter of 2024” pending a definitive agreement and then regulatory approvals.

Quorum Health’s plans to sell off four hospitals to Deaconess Health System and independent affiliate Deaconess Illinois were approved by the Illinois Health Facilities and Services Review Board. Quorum, which has been tight on cash, is set to receive $68 million from Deaconess Health System and $78 million for Deaconess Illinois.

Sparrow Health System is looking to join University of Michigan Health in a deal that will expand services to more mid-Michigan residents, the university announced. The two organizations have had an affiliation agreement on the books since 2019, and the deal follows financial struggles and layoffs for Sparrow. Terms of the deal were not disclosed, although the university said it has committed $800 million over eight years for investments into Sparrow. It is expected to close in the first half of 2023 pending regulatory review.

Augusta University Health System in Georgia signed a letter of intent to join WellStar Health System. The system began exploring the partnership in 2019 and noted that the deal will create a broader affiliation with its Medical College of Georgia. It will also “likely result in significant investments” to improve facilities and build a new hospital and medical office buildings. The deal is contingent on a definitive agreement and regulatory approval.

Inspira Health added Salem Medical Center, acquiring its hospital building, ambulatory surgery center and physician offices. Terms of the deal were not disclosed, though the New Jersey organizations said the transition is expected to take about a year.

Trinity Health’s purchase of “financially distressed” Madera Community Hospital was conditionally approved by California’s attorney general. The conditions include up to $45 million from Trinity to install and implement a new medical records system and $3 million annually for other “necessary investments” such as equipment upgrades and charity care requirements.


Centene wrapped up its $1.35 billion divestiture of Magellan Rx to Prime Therapeutics early in the month. The deal adds Magellan's specialty drug management capabilities to Prime Therapeutics' suite of pharmacy benefit management tools and brings 1.7 million new pharmacy benefit manager members to Prime’s collection. Centene had elected to sell off Magellan Rx as part of its wide-ranging value-creation plan.

UnitedHealth Group and home health provider LHC Group have bumped back the timeline of their merger agreement as federal regulators take a deeper look at the deal, the companies wrote in a Securities and Exchange Commission filing. The $5.4 billion agreement was extended until March 28, 2023, and the two companies now expect the merger to close in the first quarter of 2023. LHC Group would add 30,000 employees who provide more than 12 million home health services annually.

CareOregon and SCAN Group have agreed to combine, forming the nonprofit healthcare organization HealthRight Group. The new partners said they aim to unite the expertise and resources of their organizations to drive better care for people who have been traditionally underserved, harnessing the opportunities that greater scale provides. Members and patients will not experience disruption in their care and each brand will continue to be used in its respective market.


Amazon’s proposed acquisition of One Medical, a tech-enabled primary care provider, took a step forward with an all-clear from the Oregon Health Authority. Following a preliminary review, the regulator approved the transaction with some caveats, such as a requirement that the companies report information about their services, patients, care quality and organizational changes every six months for five years. The $3.9 billion deal had been announced in July.

BehaVR and OxfordVR have merged to create what the two companies described as the largest virtual reality healthcare delivery platform on the market. The news accompanied a $13 million series B funding round and will see the pair operate under BehaVR’s brand going forward.

Carenet Health announced the acquisition of Stericycle Communication Solutions for roughly $45 million in cash. The former said its acquisition of a fellow patient engagement technology company would add online scheduling, automated messaging tools and other call center services to its offerings.

Snap Health, a tech company connecting clinicians with home health agencies, inked a deal to acquire Texas-based Your Therapy Source. The purchase brings more than 500 clinicians and 150 home health partners under Snap’s wing. Terms of the deal were not disclosed.