Healthcare mergers and acquisitions remained strong in Q3 2026, with maintaining access to care amid rising costs being a major theme. Kaufman Hall expects this year to be the most active year for health provider M&As since the start of the pandemic.
According to Courtney Midanek, a managing director at Kaufman Hall who leads the firm’s mergers and acquisitions practice, providers are now prioritizing alliances that align with long-term goals rather than simply expanding size. Across the industry, health networks are broadening their reach, acquiring complementary services, and committing resources to sustain ongoing operational improvements.
Notable M&A Activity in Q3 2026
Several notable mergers and acquisitions took place among healthcare providers in Q3 2026. HealthPartners and Essentia Health, both Minnesota-based nonprofit health systems, announced a merger at the end of Q3. The combined organization will be called HealthPartners and will include 22 hospitals and more than 135 clinics.
On September 1, Salem Health Hospitals and Clinics finalized a $61 million deal to acquire Santiam Hospital and Clinics, a 40-bed facility in Oregon. The buyer has pledged substantial funding to upgrade the acquired hospital’s technology and infrastructure.
Adena Health took over Fairfield Medical Center in Lancaster, Ohio, on September 1, rebranding it as Adena Fairfield Medical Center. The acquisition came after the Federal Trade Commission rejected an earlier proposed sale to OhioHealth due to antitrust concerns.
Intermountain Health secured the ownership stakes of two Idaho hospitals—Mountain View Hospital and Idaho Falls Community Hospital—from Surgery Partners for a total of $797 million in gross proceeds, with net cash proceeds amounting to $587 million.
Expanding Services and Improving Patient Care
UC San Diego Health and Palomar Health formed a joint powers authority on July 1, allowing the two organizations to run hospitals and clinics jointly. The new health system, operating as Palomar UC San Diego Health, serves a region of nearly 1 million people.
Sanford Health completed its merger with North Memorial Health in early September. As part of the agreement, Sanford Health will allocate around $100 million to upgrade Robbinsdale Hospital, ensuring its status as a Level I Trauma Center.
The purchase marks Hill Valley’s entry into the behavioral health sector.
Vandalia Health assumed full ownership of Grafton City Hospital in Grafton, West Virginia, on September 1, renaming it Vandalia Health Grafton Hospital. The hospital has been under Vandalia’s management through its affiliate Mon Health since 2019.
Baptist Health officially acquired Magnolia Regional Medical Center in Magnolia, Ark., in mid-July. The 25-bed hospital is now known as Baptist Health Medical Center-Magnolia. University of Mississippi Medical Center assumed ownership of Greenwood Leflore Hospital in Greenwood, Miss., on Aug. 1.
NYC Health + Hospitals and Maimonides Health are moving forward with their plan to merge, after approval from the New York State Public Health and Health Planning Council. The transaction requires additional approvals.
AdventHealth and Intermountain Health signed a definitive agreement in August to create a joint venture with the goal of improving care access in the greater Denver metro area. The deal will create a partnership among AdventHealth’s Denver-area hospitals and three Intermountain hospitals.
WVU Health System plans to invest up to $17 million over the next seven years to modernize Fulton County Medical Center, a 21-bed critical access hospital in McConnellsburg, Pa. The investment will focus on installing Epic as well as integrating the hospital’s electronic medical records and revenue cycle management systems.
Wellstar Health System and Stephens County Hospital have entered into an agreement for Stephens to join Wellstar by the end of 2026. Parkview Health and Witham Health Services signed an affiliation agreement, which they expect to finalize in January 2027.
