The first quarter of 2026 was characterized by steady healthcare mergers and acquisitions (M&A) deal flow across a broad range of sectors, reflecting a maturing market in which consolidation, artificial intelligence (AI) integration, and cross-sector partnerships have emerged as defining themes. Physician practice management activity continued at a steady pace—particularly in dentistry, oncology, and ophthalmology—even as a new wave of state-level legislation sought to impose greater scrutiny on private equity (PE)-backed transactions and management services organizations (MSOs). Clinical research, ambulatory surgery centers, hospitals, home health, behavioral health, managed care, digital health, and pharma services all saw meaningful transaction volume, with acquirers pursuing targets that offer differentiated capabilities, expanded geographic reach, and/or technology-enabled care delivery models. AI, once a differentiating feature, is increasingly viewed as a foundational layer of healthcare infrastructure, as evidenced by GE HealthCare’s $2.3 billion acquisition of medical imaging software provider Intelerad. Among the quarter’s largest transactions, Cencora completed its approximately $4.6 billion acquisition of a majority of the outstanding equity it did not already own in oncology platform OneOncology and subsequently agreed to acquire EyeSouth Partners’ retina business for $1.1 billion.
Physician Practice Management
In what is becoming a theme for the beginning of the year in the physician practice management (PPM) sector, Q1 was marked by steady deal activity against a backdrop of a new wave of state-level legislation aimed at scrutinizing the consolidation—and, in some cases, the buyers themselves—of physician and dental practices.
In addition to several states introducing or re-introducing legislation to require advance notice of certain healthcare transactions (state-level healthcare transaction notice and approval requirements that are already on the books can be viewed on our interactive healthcare transactions map), some states have introduced legislation specifically limiting the ability for MSOs, particularly those that are PE-backed, to partner with physician practices. For example, Connecticut House Bill 5045, introduced in February, would expand the circumstances in which a physician practice transfer requires certificate of need (CON) approval, replacing the current eight-physician threshold with a $10 million asset or revenue threshold and “requiring review of any practice transfer involving a private equity entity” and certain transactions involving MSOs. In Rhode Island, Senate Bill 2459 (and its companion in the state’s House of Representatives) would codify the state’s corporate practice of medicine prohibition and regulate contracts between physician practices and MSOs—including by placing a ban on stock transfer restriction agreements (and more generally, on “straw ownership”) and prohibiting shareholders, directors, and officers of a physician practice from serving in any such capacity in any MSO that manages the physician practice. With Senate Bill 2939, Minnesota legislators are similarly seeking to codify the state’s prohibition on the corporate practice of medicine and require that a physician practice’s owners retain “meaningful ownership” over the practice. As of the date of publication of this article, the above-described bills all remain under review by the applicable legislative bodies.
Notwithstanding the foregoing, buyers and their counsel continue to navigate the expanding regulatory environment to get deals done. Cencora (NYSE: COR) (formerly AmerisourceBergen) dominated headlines in that respect. After first announcing the deal in December, in February, Cencora completed its acquisition of the majority of the outstanding equity it did not own in OneOncology, an oncology-focused physician platform, for approximately $4.6 billion. A month later, Cencora signaled its plans to scale its retina eye care platform, Retina Consultants of America, which it acquired just last year, by entering into a definitive agreement to acquire EyeSouth Partners’ retina business from Olympus Partners for $1.1 billion. According to Levin Associates, this was the largest eye care purchase price in the last five years. The transaction is not expected to close before September 30, 2026.
In our 2025 year-end transactions report, in addition to oncology and ophthalmology, we identified dentistry as a high-growth specialty. A TUSK Practice Sales survey found that 61% of surveyed dental services organizations (DSOs) reported that their PE backers expected a moderate to high increase in acquisition activity in 2026. Q1 proved this thesis, as we again saw a large volume of deals in the dental practice space. After announcing 12 transactions in 2025, in January, SALT Dental Partners (a specialty pediatric dentistry and orthodontic dental platform backed by Latticework Capital Management) announced the acquisition of two practices: World of Smiles Pediatric Dentistry and Suffolk Pediatric Dentistry, with locations in Oregon and New York, respectively. Smile Partners USA (primarily backed by Silver Oak Services Partners) announced in January its expansion into a new market with the acquisition of two practices in Ohio and announced in March its acquisition of Atlanta Endodontics in Georgia. MB2 Dental (backed by Warburg Pincus, with continued support of Charlesbank Capital Partners) increased its footprint by adding three new partner practices in Q1: Wellen Family Dental in Florida and Cabrillo Family Dental Care and The Center for Dental Wellness at Camarillo in California.
While PE-backed dental practice platforms such as those referenced above and others, including The Smilist (backed by Zenyth Partners) and Specialty1 Partners (backed by Centerbridge Partners and VSS Capital Partners), continued to scale, so, too, did publicly traded Park Dental Partners (Nasdaq: Park). In January, Park Dental announced the completion of two general dentistry practice acquisitions on December 31, 2025: Sunlight Dental in Phoenix, Arizona, and Weddell Dental in Bloomington, Minnesota. The addition of Sunlight Dental marked Park Dental’s entry into its third state. It is abundantly clear that the dental space remains ripe for investment.
During Q1, there were also a few interesting transactions in the radiology space. In January, RadNet, a national provider of freestanding, outpatient diagnostic imaging services in the United States, announced it had acquired Radiology Regional, a division of LucidHealth with 13 imaging centers in Florida, and in March announced that it had acquired the assets of Annapolis, Maryland-based Chesapeake Medical Imaging for $29 million and on-boarded several of its radiologists.
In 2026, the regulatory headwinds may be cancelled out by what some commentators believe will be a “return to normalcy” when it comes to physician practice valuations as seller expectations continue to sync with reality after their peaks in 2020 to 2022. The end result we, and many others, anticipate will be a steady volume of deal flow in the PPM sector.
Clinical Research Organizations
Q1 2026 continued a pattern of strategic consolidation in the clinical research space, with acquirers targeting specialized therapeutic expertise and novel delivery models to differentiate their platforms. The growing adoption of decentralized and community-based clinical trial models is attracting investment, as sponsors seek to expand access, accelerate enrollment, and reach more representative patient populations. With big pharma continuing to ramp up research spending and with outsourcing penetration climbing across all trial phases, we expect deal activity in this sector to remain steady through the remainder of 2026.
Q1 saw certain notable transactions in the clinical research sector. In January, Avance Clinical, a global clinical research organization (CRO) focused on accelerating clinical development for biotech sponsors, announced the acquisition of LumaBridge, a specialized U.S.-based CRO focused on oncology-related clinical trial solutions for biotech companies. LumaBridge will form the foundation of Avance’s global Oncology Center of Excellence, enhancing its ability to support oncology development from early Phase I studies through global later-phase programs while strengthening its U.S. footprint. In February, Worldwide Clinical Trials, a global CRO and portfolio company of Kohlberg, announced its acquisition of Catalyst Clinical Research, LLC, a specialized oncology CRO and portfolio company of QHP Capital. Catalyst is known for its expertise in early-phase oncology trials and its strong biometrics and Functional Service Provider (FSP) model. The combination is designed to establish Worldwide as a leading oncology-focused CRO while maintaining depth across multiple therapeutic areas, including its central nervous system specialist capabilities. Furthermore, in February, Lightship Inc., a clinical trial site organization, announced its acquisition of Veda Trials, a company backed by Redesign Health and specializing in end-to-end clinical operations delivered in community care settings. This acquisition will allow Lightship to launch trials faster, have more representative participant populations, and produce higher quality data.
Taken together, these transactions reflect two key themes shaping the clinical research landscape: (1) the continued consolidation around oncology expertise; and (2) the growing investment in community-based and decentralized trial delivery models. As CROs evolve from transactional vendors into strategic development partners, we anticipate that acquirers will continue to pursue targets that offer differentiated therapeutic capabilities, innovative trial delivery models, and expanded geographic reach.
Ambulatory Surgery Centers
Transactions in the ambulatory surgery center (ASC) sector followed the steady pace of healthcare transactions in Q1. No one type of transaction or investment dominated the quarter, as providers, investors, and management companies alike sought out strategic cross-sector partnerships to remain competitive while maintaining quality of care.
In the ASC management space, ASC management company NueHealth announced in January four partnerships in Missouri and New Jersey (Hackensack Musculoskeletal Surgery Center, St. Joseph Center for Outpatient Surgery, The Surgical Center at Columbia Orthopaedic Group, and Surgery Center of the Northland), utilizing different ownership and management structures across the transactions, including both minority equity joint ventures and non-equity management models. In February, nonprofit health system Prisma Health announced a joint venture with ASC management company Atlas Healthcare Partners aimed at expanding patient access. The venture anticipates transitioning certain of Prisma’s existing ASCs and developing over 15 ASCs in the Southeast. Such transactions reflect a growing preference for diverse structures that allow existing owners to preserve meaningful participation while leveraging operators and management company administrative expertise.
In March, Surgery Partners (Nasdaq: SGRY) announced the acquisition of Preferred Vascular Group, an ASC operator specializing in dialysis procedures, marking Surgery Partners’ entry into the dialysis care space and expanding its presence in vascular care. ReFocus Eye Health also announced an affiliation with seven ophthalmology practices and four ASCs affiliated with Omni Ophthalmic Management Consultants. Additionally, Summit Spine & Joint Centers acquired Savannah Pain Management and Savannah Pain Center, adding an interventional pain management practice and an ASC in Savannah. Q1 also saw certain divestitures. Notably, Medical Facilities Corporation announced the sale of its 64% interest in Oklahoma Spine Hospital for $64 million and completed the sale of Newport Center Surgical in California for $1.5 million.
Overall, ASC deal activity in Q1 showed steady activity through strategic transactions aimed at long-term objectives centered around balancing quality of care and access with efficiency and profitability.
Hospitals & Health Systems
Hospital and health system transactions were steady in the first quarter of 2026, with several transactions announced or completed. Deal activity was driven by, among other things, cross-market transactions, acquisitions of distressed hospitals by health systems, and ambulatory expansion.
Cross-market transactions are an increasing trend in driving deal activity in the hospital and health system sector, with several examples in Q1. Health systems are increasingly pursuing cross-market transactions to increase leverage with payors and vendors and to scale operations. For example, this past quarter, California-based Sutter Health and Minnesota-based Allina Health signed a letter of intent for the systems to join and create a combined nonprofit health system that would span California, Minnesota, and Wisconsin. The Centurion Foundation, an Atlanta-based nonprofit, also completed its acquisition of Rhode Island-based Roger Williams Medical Center and Our Lady of Fatima Hospital from Prospect Medical Holdings, establishing a new nonprofit system, CharterCARE Health of Rhode Island. Notably for cross-market transactions, however, regulatory scrutiny increased in 2026 with the Federal Trade Commission’s (FTC) new Healthcare Task Force, which begs the question of how long this trend will continue.
Several transactions this quarter involved distressed hospitals and health systems. In January, Hartford HealthCare completed its $86.1 million acquisition of Manchester Memorial Hospital from bankrupt Prospect Medical Holdings. UConn Health also completed its acquisition of Waterbury Hospital from Prospect Medical Holdings, establishing the UConn Health Community Network. In March, Baptist Health reached a definitive agreement to acquire South Arkansas Regional Hospital to add the hospital to its system later this year.
Several transactions in the first quarter were also aimed at ambulatory and outpatient expansion and digital capabilities. These systems seek to diversify revenue streams toward more profitable outpatient care. For example, HCA Healthcare (NYSE: HCA) expanded its outpatient footprint this quarter with its Dallas-based Medical City Healthcare acquiring 13 CommunityMed urgent care centers. In January, Mercyhealth acquired FHN, a 100-bed hospital with eight outpatient facilities. Tampa General Hospital and Mass General Brigham also announced a new joint venture creating a coordinated ambulatory network serving Florida’s East Coast and expanding access to high-quality outpatient services. UPMC similarly acquired Pennsylvania Gastroenterology, a leading provider of gastrointestinal and digestive health services in Central Pennsylvania, to expand access to specialized gastroenterology care.
Several transactions in Q1 also involved health systems’ acquisitions of physician practices and other provider groups. For example, Iredell Health System acquired Carolina Specialty Care, a multi-specialty medical practice in North Carolina. UAB Health System also acquired Southview Medical Group, a multi-specialty practice that specializes in the prevention, diagnosis, and treatment of diseases in Alabama. Medical University Hospital Authority, part of MUSC Health, also purchased all membership interests in Palmetto Primary Care Physicians, South Carolina’s largest independent primary care group, for $111 million.
Large national systems, including Community Health Systems (CHS) (NYSE: CYH), continued divestitures in 2026, with several taking place already in the first quarter. In January, CHS signed a definitive agreement to sell Crestwood Medical Center to Huntsville Hospital Health System for approximately $450 million—the closing of the sale was announced by the parties on April 1. In February, CHS sold Commonwealth Health, a three-hospital system in Pennsylvania, to Tenor Health Foundation, marking CHS’s exit from Pennsylvania. In March, CHS also signed a definitive agreement to sell four Arkansas-based hospitals to Freeman Health Systems for $112 million; this transaction is expected to close in Q2 and would mark CHS’s exit from Arkansas. CHS also completed the sale of its 80% ownership interest in Tennova Healthcare-Clarksville Hospital and the freestanding emergency room Tennova ER-Sango operations to Vanderbilt Health for $623 million.
In March, CommonSpirit similarly sold North Dakota-based CHI St. Alexius Health Devils Lake to North Dakota-based Altru. In January, Altru also signed a nonbinding agreement with CommonSpirit to acquire North Dakota-based entities: CHI St. Alexius Health in Bismarck, CHI St. Alexius Health Turtle Lake, and CHI St. Alexius Health Garrison. CommonSpirit is also in talks with Pittsburgh-based UPMC to sell the Ohio-based Trinity Health System.
Overall, deal activity for hospitals and health systems remained steady throughout Q1, as providers and investors continue to seek out diverse partnerships that integrate different provider types.
Home Health, Hospice Care & Personal Care Services
Deals in the home health, hospice care and personal care services space showed a promising start to the year. The headline deal in Q1 was the announcement in February that Enhabit (NYSE: EHAB), a home health and hospice provider, entered into a definitive agreement to be acquired by PE firm Kinderhook Industries in a take-private transaction valued at $1.1 billion. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions.
The hospice subsector proved to be particularly active in Q1. In January, Maine-based Andwell Health Partners merged with Hospice of Southern Maine, effective as of April 1, 2026. Superior Health Holdings, a Louisiana-based home health and hospice provider backed by Renovus Capital Partners, acquired the Louisiana Bayou locations of Hope Hospice and its affiliate Hospice BC, LLC. Also in the hospice space, Superior Health Holdings announced the acquisition of Pulse Home Health and Hospice, further expanding its footprint in Louisiana. Pulse provides a plethora of in-home services, enabling it to meet a broad range of clinical needs. Uplift Hospice also acquired Georgia-based Autumn View Hospice, considerably increasing its daily patient census and employee headcount across Arizona, Georgia, Nevada, and Texas.
There were several notable transactions in the home care subsector in Q1. Choice Health at Home – a home health, hospice, and personal care services provider centered in the Southwest – announced its acquisition of Cy-Fair Health Care in Texas and Alliant Home Health, Palliative and Hospice Care in Colorado. Additionally, Choice announced that it acquired Senior Nannies Home Care Services and Senior Advantages Assisted Living Placement Services (Senior Nannies). Senior Nannies is one of the largest personal care operators in the southeast. This expansion marks Choice’s strategic entry into the Florida market and is in keeping with its goal of becoming a national, fully integrated provider of skilled home health, hospice, personal care, rehabilitation, and specialty in-home services.
Dovida, a global provider of home care services spanning six international markets, announced its entry into the U.S. market with the acquisition of A Place At Home, a home care franchise providing services nationwide. Residential Home Health, an affiliate of Graham Healthcare Group (NYSE: GHC), announced the acquisition of Pennsylvania-based Covenant Home Health. FFHC is a provider of pediatric home care, primarily consisting of skilled private duty nursing services, with 27 locations across Florida, Illinois, Iowa, Pennsylvania, South Dakota, Texas, and North Carolina. This deal is expected to close in the second quarter of 2026. Finally, Colorado-based Canyon Home Care & Hospice acquired Columbine Poudre Home Care as well as its affiliate Bloom at Home. The combined entity will provide medical and non-medical home care, hospice, infusion services, and medical equipment.
Digital Health & Health Information Technology
At the 44th Annual J.P. Morgan Healthcare Conference held in January 2026, Jeremy Meilman, global head of Healthcare Investment Banking at J.P. Morgan, predicted, “We’re set for an active year ahead – biopharma innovation, medtech and life science breakthroughs, and AI transforming healthcare services.” In line with Meilman’s prediction, the first quarter of 2026 saw a strong start to healthcare technology deal flow. A defining characteristic of healthcare technology M&A that is evident from Q1 is a shift toward fewer but larger, more strategically focused transactions, which aligns with broader M&A trends showing total deal value across the healthcare and all other industries up 50% compared to Q1 2025, but deal volume down 22%.
Deals involving digital health and AI-enabled platforms were at the forefront of Q1 deal flow in both public company and PE spaces. In the consumer telehealth and digital pharmacy subsector, Hims & Hers (NYSE: HIMS) agreed to acquire Eucalyptus, a telehealth company with operations in Australia, the UK, Germany, and Canada, that provides online consultations and pharmacy services. The deal is valued at up to $1.15 billion and is part of Hims & Hers’ strategic plan to expand into Australia and Japan and continue to expand its presence in the UK, Germany, and Canada.
In the AI-enabled digital therapeutics/virtual care platform space, Sword Health, a fast-growing AI-powered musculoskeletal and pain management platform, acquired Kaia Health in a $285 million deal. Kaia Health is a digital health company with a focus on musculoskeletal and pulmonary care, and acquiring Kaia Health was a move by Sword Health to expand its care to more people in the United States as well as to enter the German market. In the medical imaging technology subsector, on March 18, GE HealthCare (Nasdaq: GEHC) announced it had completed its acquisition of Intelerad, a leading medical imaging software provider, for a base purchase price of $2.3 billion in cash with customary adjustments. The acquisition of Intelerad was explicitly framed around building an AI-enabled, cloud-first enterprise imaging platform that “will support GE HealthCare’s imaging technologies and AI capabilities by simplifying complex workflows, and providing patients and customers with more precise, connected care across the continuum.” This acquisition was part of GE HealthCare’s broader D3 strategy that involves leveraging smart devices, digital tools, and disease-focused solutions.
In the virtual behavioral health subsector, Universal Health Services (NYSE: UHS) announced that it had entered into an agreement to acquire Talkspace in a transaction valued at approximately $835 million. Talkspace is a virtual behavioral healthcare company that has a focus on innovative approaches to mental health services. Additionally, Spring Health, a global mental health platform that supports employers and health plans, also announced that it had entered into an agreement to acquire Alma, a membership-based platform that helps independent mental health providers with insurance credentialing, billing, and practice management. By combining these two platforms, Spring Health is aiming to alleviate some of the most persistent challenges in mental health – namely, connecting people with the right care for their mental health needs and avoiding disruptions as people’s employment, coverage, and circumstances change. The transaction is expected to close in Q2 of 2026.
In the AI clinical documentation subsector, Grow Therapy acquired Tenor Therapy, which had developed a product that was a HIPAA-compliant, AI-powered, clinical documentation tool that generated therapy notes and helped with documentation. Tenor’s product was no longer available after February 28, with Tenor noting that it is building within Grow Therapy’s platform directly. Also in this space, Heidi Health, Australia’s leading healthcare AI platform, acquired AutoMedica, a UK-based clinical AI startup focused on evidence-led frameworks and regulatory-compliant clinical reasoning. The acquisition strengthens Heidi’s capabilities beyond documentation into real-time evidence generation and patient communication tools while supporting its international expansion and UK/EU regulatory relationships.
In the health data aggregation and interoperability subsector, OpenAI, one of the largest players in the AI space, announced that it acquired Torch, a healthcare startup that was working on an AI-driven product that combines patients’ medical information from multiple sources, such as lab tests, doctors’ visits, and wearables, among others. The deal was reportedly valued at approximately $100 million. In the healthcare consulting technology space, Chartis, a healthcare advisory firm based in Chicago and backed by Blackstone, acquired Leap AI. Leap AI is a California-based company that provides AI-driven analytics and workflow solutions for healthcare organizations. The financial terms of the deal were not disclosed.
Deals involving healthcare technology infrastructure were prevalent as well. In the revenue cycle management (RCM) subsector, EnableComp announced its acquisition of Health Resources Optimization, Inc. (H/ROI), a premier clinical denials and revenue recovery firm serving major northeast health systems. The deal bolsters EnableComp’s complex RCM platform with specialized expertise in medical-necessity denials, DRG downgrades, and post-bill validation amid rising payer scrutiny.
In the RCM / pediatric-specialized subsector, Lead Capital Partners, a Nashville-based, healthcare-focused PE firm, announced its investment in PedsOne. PedsOne is a leading provider of outsourced RCM that supports and partners with independent pediatric practices across the country. Also, in the RCM space/specialized billing, specifically in the emergency medical services subsector, EMS Management & Consultants – a leading provider of revenue cycle management, compliance and operational solutions for emergency medical services, fire, and mobile healthcare organizations across the United States – announced its acquisition of Health Services Integration, a specialized air medical billing and reimbursement company. EMS Management & Consultants’ CEO cited this acquisition as a “strategic milestone in our long-term commitment to air medical services,” which is an industry that involves unique challenges, such as regulatory scrutiny and payer complexity. Further demonstrating activity in payments and patient financial engagement, RevSpring acquired TrustCommerce, integrating the latter’s enterprise payment gateway and security solutions to deliver end-to-end visibility and simplify payment operations across pre-, point-, and post-service collections. Additionally, Knowtion Health acquired revly, an AI-powered intelligent reimbursement and claims routing technology provider, expanding Knowtion’s EHR-agnostic capabilities to identify revenue opportunities before and after claim submissions.
In the electronic health records (EHR) data management subsector, Harmony Healthcare IT announced its acquisition of Blue Elm, a MEDITECH data solutions provider. Since its founding in 2001, Blue Elm has served more than 500 hospitals and vendors, and its acquisition by Harmony Healthcare IT will help MEDITECH hospitals and health systems have more support and access to expertise throughout the entirety of the data lifecycle. In the care management and virtual care (home-based) subsector, Harbor Health, a Texas-based primary and specialty care clinic group, acquired Rippl, a dementia care platform designed to help people living with dementia remain at home as opposed to the emergency department, hospital, and post-acute settings. Rippl’s platform uses a coordinated care approach to bring together a variety of resources – such as healthcare providers, community resources, and social services – to meet the needs of both individuals with dementia and their caregivers.
This focus on consolidating resources and data for healthcare providers and consumers was also seen in the formation of Interra Health. In the e-prescribing and prescription decision support subsector, the newly formed Interra Health, resulting from the merger of the healthcare technology companies DoseSpot and Arrive Health, will offer a platform that combines each company’s software to give clinicians real-time cost and coverage information when prescribing medications.
Overall, the various transactions of Q1 2026 reflect a broader conviction, shared by a range of buyers, that AI is no longer a differentiating feature of healthcare technology but ought to be a foundational layer of its infrastructure. Consolidation across subsectors – telehealth, mental health platforms, imaging technology, RCM, EHR data services, and pharmacy interoperability – signals a clear maturation of the market. Notable consolidation in complex RCM (including clinical denials, payments infrastructure, and AI-driven claims optimization) alongside clinical AI tools further underscores the shift toward scalable, AI-native infrastructure. Consolidation to provide a more seamless and data-informed experience for clinicians and patients appears to be a continued focus of healthcare technology transactions as well. It remains to be seen whether the dynamics established in Q1 2026 will continue defining the pace and character of healthcare technology M&A throughout the remainder of the year.
Behavioral Health
Following a busy 2025 with transactions up 42% compared to the previous year, behavioral health appears to remain a sector of interest for investors in 2026, with several transactions announced or completed in Q1. Deal activity this quarter was primarily driven by transactions in the counseling and psychiatry and the autism and applied behavior analysis subsectors of behavioral health.
Counseling and psychiatric care were the most active behavioral health specialties in 2025, highlighting the growing demand for outpatient mental health services and talk therapy. Continuing with this trend, there were several transactions involving counseling and psychiatric care in Q1. For example, Orchard Park Hospital, a 30-bed inpatient pediatric psychiatric hospital, signed a letter of intent to merge with WVU Medicine Wheeling Hospital. Two of Connecticut’s leading behavioral health organizations – Wellmore and the Village for Families and Children, both of which offer mental and behavioral healthcare, including programs for school readiness, early childhood education, home-based counseling, substance use prevention and recovery, and crisis care – also announced plans to merge operations, with the goal of expanding services.
This quarter also included transactions in the autism spectrum disorder subsector of behavioral health. For example, in February, the Center for Social Dynamics (backed by Goldman Sachs and NMS Capital) announced that it acquired the Behavior Change Institute in New Mexico to expand access to autism and behavioral health services.
Other notable behavioral health transactions this quarter included Magellan Health’s entry into an agreement to be acquired by Madison Health Group, which would allow Magellan to operate as an independent managed behavioral healthcare company. As discussed above, UHS also entered into a definitive agreement to acquire Talkspace, a leading online virtual behavioral healthcare company, in a deal valued at $835 million.
Managed Care & Value-Based Care
There were several notable transactions in the managed and value-based care space during the first quarter. In January, Clever Care Health Plan and CareMore Health, a Mosaic Health company, announced a primary care partnership that would add 350 additional primary care providers in-network in Southern California, effective January 1, 2026. Clever Care Health Plan is a Medicare Advantage health plan dedicated to offering culturally aware services through a value-based model that blends Eastern and Western medicine. Its network includes 30,000 providers and facilities, 48 hospitals, nearly 2,000 bilingual physicians, Eastern wellness specialists, and more than 700 directly contracted acupuncturists. Humana (NYSE: HUM) announced a partnership with Atlas Oncology, which would expand access to Atlas Oncology Partners’ coordinated oncology care services to its Medicare Advantage members in Tennessee and Mississippi. Premise Health and Crossover Health also announced a definitive agreement for the two companies to merge. Premise and Crossover will offer comprehensive advanced primary care and occupational health services for employers, unions, tribes, and health plans. The combined organization will serve over 400 organizations and millions of members through both its 900 on-site and near-site wellness centers and via virtual care.
In February, Kaiser Permanente and Nevada-based Renown Health completed their joint venture to operate a health plan and outpatient care delivery system in northern Nevada. Announced in our Healthcare Trends & Transactions Q3 2025 report, this deal will provide Reno patients with an integrated care and coverage model, allowing for seamless access to both entities’ services. Kaiser currently serves 12.6 million members across nine states and the District of Columbia. Renown is a nonprofit health system operating two acute care hospitals and a medical group in northern Nevada. In March, Oasis Health Partners, a value-based care enablement organization, announced the acquisition of Premier Health, a healthcare administrative services organization that specializes in revenue cycle management and practice operations.
Patient Square Capital, a dedicated healthcare investment firm, announced its plans to acquire Paradigm, a specialty care management organization that provides risk-based clinical solutions and case management, specialty networks, home health, shared decision support, and payment integrity programs. Finally, Humana’s CenterWell, the healthcare services division of Humana Inc., completed its acquisition of MaxHealth, a primary care organization, from Arsenal Capital Partners in a deal reportedly valued at $1 billion. MaxHealth will now be affiliated with CenterWell Senior Primary Care.
Pharma Services, Pharmacy & Pharmacy Benefit Managers
In the pharma services, pharmacy and pharmacy benefit manager (PBM) space, there were a few announced deals of note. In February, NuvemRx, a pharmacy solutions company for community health providers, announced its acquisition of the 340B referral capture business Par8o, LLC from R1 RCM. The acquisition is aimed at expanding NuvemRx’s ability to help capture specialty referrals, retain patients, and comply with rebate and reimbursement changes. Also in February, MedImpact Healthcare Systems, Inc., a pharmacy benefit and health solutions company, completed its acquisition of Sav-Rx, a PBM, in a strategic move to deepen MedImpact’s expertise in the organized labor market segment. PE firm Nautic Partners also completed its growth investment in KabaFusion, a home and alternate-site infusion platform. KabaFusion serves patients in 45 states with a network of 33 infusion pharmacies and 21 ambulatory infusion suites.
Conclusion
Looking ahead, the dynamics established in Q1 suggest that healthcare M&A activity will remain robust in the second quarter of 2026, with several significant transactions—including the Enhabit take-private transaction and CHS’s divestitures of its Arkansas hospitals—expected to close, while AI adoption, cross-market consolidation, and evolving regulatory frameworks are likely to continue to impact deal flow across the various sectors.