Three major health system deals have unwound or been called off since the start of 2023:
1. Chicago-based CommonSpirit Health and Altamonte Springs, Fla.-based AdventHealth said they will end their Centura Health joint venture.
Each health system will now directly manage their respective care sites in Colorado and Western Kansas that comprise Centura Health. Englewood, Colo.-based Catholic Health Initiatives and AdventHealth formed Centura Health in 1996, and Catholic Health Initiatives has since merged with San Francisco-based Dignity Health to form CommonSpirit Health.
2. Financially troubled Tower Health and Philadelphia-based Penn Medicine have decided to no longer pursue their strategic alliance. While the two systems will not move forward with the alliance announced in July 2021, they will continue to work together in "areas of mutual interest," according to a Feb. 10 filing.
"Under current market conditions, both organizations feel it is necessary to focus on their individual organizational goals and community needs," the statement read.
3. Worcester, Mass.-based UMass Memorial Health and Gardner, Mass.-based Heywood Healthcare have called off merger plans. The two systems signed a nonbinding letter of intent in May to explore a deal where Heywood would have become a member of UMass Memorial Health.
According to the report, UMass Memorial President and CEO Eric Dickson told employees in a Jan. 5 memo that "given changed circumstances and the difficult healthcare environment in which we all find ourselves, we decided reluctantly in December that this is not the time to pursue the corporate affiliation we initially considered," according to a report from the Boston Business Journal.