2022: Year of the Cross-Market Health System Mega-Merger

2022: year of the cross-market health system mega-merger

Announced this week, Sanford Health is planning to merge with Minnesota-based Fairview Health Services in what would create a $14B, 58-hospital merger. Get used to these types of cross-market mergers. The FTC is cracking down on ‘horizontal’ or ‘market dominating’ M&A, but it’s much harder for the Commission to challenge cross-market mergers given current precedent.

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VillageMD ties the $9 Billion knot with Summit Health

hospitalogy

Combined, VillageMD NewCo will operate 4,100 providers (2,150 primary care physicians), 680 locations, 7 million patients, and 125,000 full-risk Medicare Advantage lives. That’s a pretty big deal (pun absolutely intended) as NewCo vaults itself into becoming one of the largest primary care providers in the country and geographically dense (an important feature in value-based care) in the Northeast.

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