Editor's Note: This story has been edited to accurately reflect the value of Thoma Bravo's $1.8 billion acquisition of NextGen Healthcare.
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 September.
Providers
Froedtert Health and ThedaCare moved closer to consummating their 18-hospital merger with the signing of a definitive agreement outlining the terms of their proposed combination. The Wisconsin nonprofits’ nearly $5 billion merger still awaits regulatory approvals and other customary pre-closing conditions and is now targeting “the start of the new year” for a close.
LCMC Health’s $150 million purchase of three Tulane University hospitals from HCA Healthcare was reaffirmed by a U.S. district judge. The deal had been approved by state regulators in January but faced legal opposition from the Federal Trade Commission. The New Orleans-based system said it is moving forward with integrating the hospitals, though there is still a chance the federal regulator files an appeal.
Walmart is reportedly exploring a majority stake purchase in primary care clinic operator ChenMed. The deal would value the 125-clinic company at several billion dollars.
Cano Health, a tech-enabled primary care company, is selling off its senior-focused clinics to Humana's CenterWell in Texas and Nevada. The deal is valued at $66.7 million, including $35.4 million in cash to be paid at closing, and comes as Cano’s finances dwindle.
Sutter Health announced it would be moving forward with integrating Sansum Clinic, which operates 36 outpatient care locations across California’s central coast region. The deal goes into effect Oct. 2, though the integration will occur over the next few years. Terms of the deal first announced in May were not disclosed.
UF Health wrapped up its acquisition of Flagler Health+. The deal expands the University of Florida’s healthcare arm to three acute care hospitals, with Flagler Hospital being renamed under UF Health’s branding.
Memorial Medical Center and Hayward Area Memorial Hospital & Water’s Edge, a pair of Wisconsin community hospitals, have merged to form a two-hospital, 60-bed system called Tamarack Health.
Pipeline Health reached an agreement to sell White Rock Medical Center in Dallas, to Heights Healthcare of Texas. Pipeline, which had filed for Chapter 11 last year, said the facility had faced months of unsustainable financial losses.
Billings Clinic and Logan Health merged to form a system serving patients across their home state of Montana and into Wyoming. The combined system operates 1,000 hospital beds and employs 9,000 people.
HCA Healthcare is in exclusive negotiations to acquire Catholic Medical Center. The large for-profit system and the Manchester, New Hampshire-based center said they have signed a nonbinding letter of intent to explore the partnership and cited HCA’s prior Catholic healthcare acquisitions as successful models for a deal.
HCA Healthcare is also selling off its Terre Haute Regional Hospital to Union Health for a yet-to-be-disclosed sum. The deal includes the Indiana hospital’s related businesses, physician clinic operations and outpatient services.
UMass Memorial Health is exploring a potential affiliation with Milford Regional Medical Center and Milford Regional Physician Group. The 148-bed hospital and its providers have collaborated with the system since 1991 and cited financial challenges that are limiting its ability to stay independent.
Payers
UnitedHealth Group’s plans to acquire home health company Amedisys and merge it with Optum got a shareholder signoff. The $3.3 billion all-cash deal is being probed by federal regulators, who extended their review in August.
Elevance Health and Blue Cross and Blue Shield of Louisiana are pressing pause on a $2.5 billion merger plan as state regulators raise concerns about the impact it could have on local competition. The merger had previously been delayed in August to an early October closing after an independent adviser raised several actuarial concerns and legislators pressed executives at the Blues plan for hours over the deal's provisions. The parties maintain that they are committed to the deal despite facing political and regulatory pressures.
Molina Healthcare closed its previously announced acquisition of My Choice Wisconsin, a Medicaid managed care organization with more than 44,000 members. The purchase was expected to run Molina about $150 million and will boost its presence in the region.
Tech
NextGen Healthcare, an ambulatory technology company, agreed to be acquired in a take-private deal with private equity firm Thoma Bravo. The arrangement sets a cash price of $23.95 per share, which values NextGen at $1.8 billion including debt. The deal is expected to close later this year.
Virgin Pulse, a mobile-focused employee wellness and engagement company, announced plans to merge with benefits and analytics platform HealthComp. The companies expect their deal to close in the fourth quarter subject to regulatory approvals and other conditions. Financial terms were not disclosed, though a Wall Street Journal report pegs the deal at $3 billion.
Babylon Health agreed to sell most of its assets to eMed Healthcare as part of its bankruptcy process. The digital primary care provider’s sold-off assets, which will go to eMed’s U.K. subsidiary, include technology-driven preventive healthcare services that currently serve 700,000 patients.
Tendo, a patient engagement software vendor, announced places to acquire healthcare marketplace operator MDsave for $150 million. The deal is expected to close in October.
Avel eCare, a clinician-to-clinician telehealth services provider, acquired virtual hospitalist provider Fident Health for an undisclosed sum. Avel eCare said the deal will strengthen its clinician network and expand its services to 220 senior care facilities and over 350 hospitals nationwide.
Aspirion, a revenue cycle management company, acquired AI firm Infinia ML for an undisclosed sum. Aspirion said the deal accelerates its investments into intelligent automation for its provider clients. Going forward, Infinia ML will act as Aspirion’s R&D engine.
Tangelo, a food-as-medicine platform, acquired digital dietary evaluation platform Diet ID. Financial terms of the transaction were not disclosed, though the companies said Diet ID’s existing partners and customers will see no service interruptions amid the product integration.
The American Telemedicine Association is picking up the assets and membership of Executives for Health Innovation (formerly eHealth Initiative). The latter group had announced plans to wind down in May after a 22-year run.
ERPHealth, a behavioral health outcomes tracking software company, acquired peer-support and coaching app Manifesto. Financial terms were not disclosed.