Amid a changing healthcare landscape and a shifting regulatory and economic environment, several companies and health systems have made the decision to sell off existing assets for a number of different reasons.
Here are why 10 major facilities have decided to sell off assets in the last year:
- Medical device manufacturer Highride Medical, one of the world’s largest privately held spine companies, is selling its bone healing division. The move comes as Highride has decided to focus all of its energy on its spine segment.
- In January, Charlotte, N.C.-based OrthoCarolina made the strategic decision to sell off its physician therapy business to Atlanta-based PT Solutions Physical Therapy. In April, the practice made another major decision to part with 18 MRI locations, which it sold to Charlotte, N.C.-based Novant Health and partner MedQuest Associates. Among the system’s reasons for parting with the locations was a desire to grow its work in the ASC setting and legislation that will alter certificate-of-need laws in the state by the end of 2025.
- Stryker is selling its U.S. spinal implant business to investment firm Viscogliosi Brothers, a move that is expected to help the company “better align” its resources. Acceleration in other areas of spine care motivated the move to sell the spine implant business.
- Exactech filed for Chapter 11 bankruptcy and signed a comprehensive restructuring support agreement and asset purchase agreement with a group of its existing investors. Exactech will operate as normal during the restructuring process. The move will relieve Exactech from nonoperating legacy liabilities.
- Johnson City, Tenn.-based Ballad Health finalized its sale of select operating assets of its outreach laboratory services to Labcorp in December. Benefits of the collaboration include enhanced access to affordable high-quality laboratory services for patients and employers, expanded access to Labcorp’s comprehensive testing menu, implementation of advanced digital tools for improved patient experience and access to Labcorp’s broad network of patient service centers.
- On Nov. 1, 2024, St. Louis-based Ascension sold its St. Vincent’s Health System to The University of Alabama at Birmingham Health System Authority in a deal valued at $450 million following a $3 billion operating loss in fiscal 2023.
- In October 2024, CHS completed the sale of Davis Regional Psychiatric Hospital and Davis Regional Medical Center in Statesville, N.C., to Iredell Health System. The for-profit health system anticipates raising $1 billion from ongoing hospital sales to further reduce its ongoing debt.
- Cleveland-based University Hospitals signed a definitive agreement on Aug. 21, 2024, to sell some lab assets to Quest Diagnostics for improved efficiency and affordability of services.
- OhioHealth, based in Columbus, signed an agreement on July 10, 2024, to sell certain assets of its outreach laboratory services business to Quest Diagnostics. “As healthcare transforms, we need to ensure we can continue to provide high-quality care to our patients that also provides them value,” Chris Clinton, president of OhioHealth’s regional market and former vice president of shared services, said in a news release.
- Dallas-based Tenet Healthcare, parent company of United Surgical Partners International, divested 14 hospitals in 2024, earning more than $4.8 billion. The transactions “strengthened our hospital portfolio by enhancing returns and positioning us in more attractive markets,” Tenet CEO Saum Sutaria, MD, stated.
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