• Hackensack Meridian Health: In May 2020, Hackensack began a three-year initiative to improve its finances by $750 million. So far, the organization has consolidated some of its behavioral health services and downsized its administrative real estate footprint. It also sold an ownership stake in several fitness centers. In 2022, Hackensack sold 11 of its long-term care facilities to Complete Care and plans to sell two more this fall. This June, the organization exceeded its original target goal, improving its finances by $1.3 billion. However, Hackensack CEO Robert Garrett said that " [t]here is still more to be done," and that the organization will "continue to look for joint venture opportunities—sharing risk and gaining the expertise of a partner makes good operational sense." "We don't need to own certain elements of the care continuum that aren't part of our core business," he added.
• ProMedica: In 2022, ProMedica sold 147 skilled nursing facilities to Welltower and Integra Health. In February, the organization signed a definitive agreement to sell its Heartland  home health and hospice service line to Gentiva, a hospice provider backed by private equity. The deal is valued at $710 million and is expected to close later this year after it goes through regulatory approval.
• Jefferson Health: In July, Jefferson Health sold a skilled nursing and rehabilitation facility to Allaire Health Services, which is a privately owned provider of residential, long-term care, skilled nursing, and rehabilitation services. The organization also recently sold part of its lab services to Labcorp. According to Dr. Baligh Yehia, Jefferson's president, the transactions were not necessarily financially motivated. "It's not just about the price," he said. "Certain aspects of healthcare have evolved into something that doesn't make sense for us to do anymore. You might have a whole other team that manages the legal and administrative support because some sectors are so different. All that can take away from the work you are doing in your core business."
• Bon Secours Mercy Health: In December 2021, Bon Secours Mercy Health sold two skilled nursing facilities, as well as two assisted living facilities, to a private equity investor in New Jersey. The financial terms of the deal were not disclosed.

According to Kevin Holloran, senior director at Fitch Ratings, health systems will likely continue to divest some of their businesses at a heightened rate over the next year or two. These sales can provide organizations with a buffer against high labor costs and other financial issues. In addition, some health systems may just be looking to simplify their current operations.

"There's more of a willingness to outsource or partner than we have seen in the past," Holloran said. "I think the sentiment in the boardroom is that we don't have to own everything ourselves." (Kacik, Modern Healthcare, 8/28)

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