Possible Merger To Create Nation’s Largest Owner Of Hospitals Now Shelved
Ascension and Providence St. Joseph Health are putting talks on hold to focus on internal restructuring.
The Wall Street Journal:
Hospital Giants Halt Merger Talks
Two major hospital systems have halted talks about a possible merger, shelving for now the prospect of a combination that would have created the nation’s largest owner of hospitals, according to people familiar with the discussions. Ascension, the largest U.S. nonprofit hospital system, and Providence St. Joseph Health, also a major nonprofit hospital owner, put talks on hold to restructure as more medical care moves outside of hospitals, putting pressure on their core operations, according to the people. A big, complex merger would split attention between restructuring and combining the two giants, the people said. (Evans, 2/28)
In other industry news —
Kindred Healthcare Defeats Shareholder Lawsuit Over Humana Deal
A Delaware court ruled in Kindred Healthcare's favor, rejecting shareholders' request to block the home healthcare provider's proposed sale to Humana and two private equity firms. The Court of Chancery of the State of Delaware on Tuesday denied shareholder Brigade Capital Management's request for a preliminary injunction against the $4.1 billion deal announced in December, according to Kindred. (Livingston, 3/28)