Becker’s Healthcare Podcast Healthcare Consolidation and the Financial Outlook for Major Systems with Alan Condon
Dec 18, 2025
Alan Condon, Editor in Chief at Becker's Healthcare, dives into the intricate world of healthcare finance. He discusses the notable merger between Union Health and Terre Haute Regional, balancing local support against regulatory opposition. Condon forecasts a surge in hospital acquisitions by 2026, driven by nonprofit challenges and policy shifts. He also highlights the strong performance of for-profit giants HCA and Tenet, detailing Tenet's transformative strategies and investment focus, showcasing how scale and discipline reward investors in this evolving landscape.
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COPA Merger Clears Regulatory Hurdles
- Union Health completed a long, contested acquisition of Terre Haute Regional, previously owned by HCA, under Indiana's COPA framework.
- The transaction closed despite FTC and Indiana AG opposition and shifted after a withdrawn and resubmitted COPA application under the new administration.
Expect M&A Acceleration In 2026
- M&A momentum should pick up in 2026 as regulatory stances soften and many independent hospitals remain financially strained.
- Expected drivers include community hospitals seeking affiliations and academic systems acquiring regional community and critical access hospitals.
Financial Strain Will Fuel Consolidation
- Roughly 35% of nonprofit hospitals are operating slightly in the red and face upcoming budget pressures.
- Potential Medicaid cuts and ACA subsidy issues in 2026–2027 will push more hospitals toward mergers or strategic partnerships.