CHS is continuing to shrink its hospital portfolio and Providence struck a deal to sell a California hospital.
Here are eight hospital M&A deals that Becker’s reported during the week of March 2:
1. The Centurion Foundation, an Atlanta-based nonprofit organization, completed its long-awaited acquisition of Providence, R.I.-based Roger Williams Medical Center and Our Lady of Fatima Hospital from Prospect Medical Holdings, marking the end of a multiyear process involving regulatory reviews and financial negotiations.
The transaction establishes a new nonprofit system, CharterCARE Health of Rhode Island, which will oversee the hospitals and related assets. The deal was financed with $101 million in private bonds, along with an $18 million supplemental reserve fund created with support from state officials.
2. Fairfield, Calif.-based NorthBay Health signed a letter of intent to acquire Providence Queen of the Valley Medical Center in Napa, Calif., a move that would expand the system to three hospitals.
Providence Queen of the Valley Medical Center is a 198-bed hospital and one of the largest employers in Napa County. The transaction is expected to close by the end of 2026, pending a definitive agreement and regulatory approvals.
3. Franklin, Tenn.-based Community Health Systems signed a definitive agreement to sell four Arkansas hospitals to Freeman Health System for $112 million.
The acquisition would see Freeman Health — a nonprofit, independent system with more than 350 physicians — double its hospital footprint and enter the Arkansas hospital market. The transaction is expected to close in the second quarter, pending regulatory approvals and closing conditions.
4. Paragould-based Arkansas Methodist Medical Center merged with Memphis, Tenn.-based Baptist Memorial Health Care, becoming Baptist’s 25th hospital and third in Arkansas.
The merger comes after Arkansas Methodist signed a nonbinding letter of intent in April 2025 to join the health system. All of Arkansas Methodist’s assets — including the 191-bed hospital, 91-bed assisted living facility and eight medical clinics — transferred to Baptist following completion of the merger. Arkansas Methodist’s more than 500 employees transitioned to Baptist.
5. Harrisburg, Pa.-based Select Medical signed an agreement to be acquired by a consortium led by its co-founder and executive chairman Robert Ortenzio, senior executive vice president of strategic finance and operations Martin Jackson and private equity firm Welsh, Carson, Anderson & Stowe.
Select Medical will become a privately held company upon completion of the deal valued at $3.9 billion. The acquisition is expected to close in mid-2026, subject to customary closing conditions. Select Medical’s current management is expected to remain in place following the completion of the transaction.
6. Grand Forks, N.D.-based Altru acquired CHI St. Alexius Health Devils Lake (N.D.) — a 25-bed critical access hospital — from Chicago-based CommonSpirit.
Altru is in the process of acquiring three more hospitals from CommonSpirit. In January, Altru signed a nonbinding agreement to acquire CHI St. Alexius Health in Bismarck, CHI St. Alexius Health Turtle Lake and CHI St. Alexius Health Garrison (N.D.).
7. Nacogdoches County Hospital District in Nacogdoches, Texas, unanimously approved a new lease agreement with Dallas-based Tenet Healthcare.
The 15-year lease agreement designates Nacogdoches Memorial Hospital and Cecil R. Bomar Rehabilitation Center as campuses of Nacogdoches Medical Center. Tenet, which operates Nacogdoches Medical Center, will assume daily operations of Nacogdoches Memorial Hospital.
8. Farmington, Conn.-based UConn Health completed its acquisition of Waterbury (Conn.) Hospital from bankrupt Los Angeles-based Prospect Medical Holdings, establishing the UConn Health Community Network.
The UConn Health Community Network is a nonprofit entity created to support and strengthen community hospitals by connecting them with patient care expertise, research, education and innovation of the state’s only public academic medical center. The network includes Waterbury Hospital — now known as UConn Health Waterbury Hospital — along with the UConn Health Community Network Medical Group and UConn Health Waterbury Health at Home.
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