Failed mega-mergers, hospital closures, and rising private equity interest reshaped CEOs' M&A outlooks.
Mergers, acquisitions, and strategic partnerships remained a central focus for healthcare CEOs in 2025 as organizations grappled with the best way to scale in a volatile environment.
These five stories drew the most attention from executive leaders navigating the shifting M&A landscape.
1. How OHSU, Legacy Health Merger Fell Apart
The proposed merger between Oregon Health & Science University and Legacy Health unraveled after months of scrutiny, ending plans to create one of the largest health systems in the Pacific Northwest. Financial challenges at both organizations, combined with growing public and regulatory concern about market concentration, ultimately led the parties to walk away. The failed deal became a prominent example of how difficult large-scale health system consolidation has become, even when strategic logic appears sound.
2. Judge Approves Closure of Crozer Health, Ending 'Mismanagement' of Hospitals
In Pennsylvania, a federal judge approved the closure of Crozer Health’s hospitals, bringing an end to a long-running effort to sell the struggling system after years of financial and operational turmoil under private equity ownership. The decision marked one of the most consequential hospital shutdowns of the year, intensifying debate over private equity’s role in healthcare and the risks faced by communities when distressed assets cannot find a sustainable buyer.
3. Why Private Equity Healthcare Dealmaking Is Expected to Rise in 2025
Private equity itself was a major storyline in 2025, with dealmaking expected to rebound after a slower period. Improved capital market conditions, regulatory uncertainty around traditional hospital mergers, and significant dry powder positioned PE firms to pursue healthcare investments across provider, services, and technology sectors. The outlook reinforced why CEOs continued to monitor financial sponsors as both potential partners and competitors.
4. CHS to Sell Struggling Pennsylvania Hospitals to Turnaround-Focused Nonprofit
Community Health Systems returned to the M&A spotlight with a renewed effort to divest financially challenged Pennsylvania hospitals, this time to Tenor Health Foundation, a nonprofit focused on turnarounds. After a previous sale attempt collapsed, the new agreement highlighted how alternative ownership models are increasingly part of the solution for preserving access to care in distressed markets.
5. Longitude Health's CEO: Health Systems Must Build Capabilities Together, Not Alone
Not all of the most-read M&A coverage this year centered on traditional transactions. Longitude Health’s CEO drew attention by arguing that health systems should prioritize building shared capabilities together rather than pursuing scale through mergers alone. The approach highlighted a shift in executive thinking toward collaboration, joint ventures, and platform-based strategies as complements or alternatives to full consolidation.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Regulatory scrutiny and financial strain stalled large health system mergers this year, including the OHSU–Legacy deal.
Distressed assets drove closures and nonprofit turnarounds, underscoring risks in PE-backed ownership.
CEOs increasingly weighed partnerships and shared capabilities alongside traditional M&A.