- Hospital Merger and Acquisition Activity Withstands COVID-19 Slump
“For more than two decades, we’ve been focused on good growth, with the goal of driving innovation and bringing more affordable and accessible healthcare to the communities we serve,” said Kelby Krabbenhoft, president and CEO of Sanford Health.
“Today we’re marking another major milestone in our long history of working to change the course of healthcare across the globe. By coming together with Intermountain Healthcare, we will improve the health and well-being of the communities we serve and strengthen our impact in healthcare delivery and value.”
The Board of Trustees from both systems will join to combine a new board, and a new executive committee of the board will feature equal representation from members of both Sanford Health and Intermountain Healthcare boards.
So far, Marc Harrison, MD, president and CEO of Intermountain, was appointed president and CEO of the combined organizations, Kelby Krabbenhoft will serve as president emeritus, and Gail Miller, current chair of the Intermountain Board, will serve as board chair.
Both Sanford Health and Intermountain will continue to operate under their current names for the time being.
“This merger enables our organizations to move more quickly to further implement value-based strategies and realize economies of scale. Through coordinated care, increased use of telehealth and digital health services, we will make healthcare more affordable for our communities,” Harrison said.
The merger is expected to close in 2021, contingent on federal and state approvals.
Despite the COVID-19 pandemic, merger and acquisition activity has remained unaffected, according to the latest M&A Quarterly Activity Report from Kaufman Hall.
Specifically, providers announced 19 transactions between July 1 and September 30, 2020, an increase from just 14 transactions during the second quarter of 2020.
Seventeen of the 19 transactions were by not-for-profit organizations, including five involving religiously sponsored acquirers and five involving academic acquirers.
Researchers noted that third-quarter healthcare merger and acquisition activity increased largely due to deals in progress from before the pandemic.
For example, New Hanover Regional Medical Center in North Carolina issued a request for proposals in January 2020 and just recently voted unanimously to partner with Novant Health.
And after an 18-month long assessment, Illinois-based Northwest Community Healthcare announced its decision to join NorthShore at the beginning of July.
Most recently, Atrium Health announced the completion of a healthcare merger deal with Wake Forest Baptist Health to create a next-generation academic health system.
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