In 2026, health systems across the United States are navigating challenging market conditions, turning to M&A to expand their networks. Based on data captured in our LevinPro HC platform, here are the top health system trends and deals of the year so far.
Health System M&A has surged this year
U.S.-based health systems have announced 48 transactions through the final week of April, a 30% increase in volume compared with the same time last year. There have been 10 deals in 2026 targeting hospitals, with only one health system merger. In January, Englewood Health agreed to merge with RWJBarnabas Health, creating one of the largest health systems in New Jersey. Englewood Health is anchored by a hospital and a statewide physician network and generated nearly $1.17 billion in net patient revenue in 2024, according to recent financial documents.
A modest amount of activity from health systems has focused on outpatient medical buildings (six deals) and ancillary services (seven deals). Health systems have announced 21 deals for physician groups, especially in high-value specialties such as orthopedics (six deals), internal medicine (four) and gastroenterology (four).
Notable deals this year include Medical University of South Carolina’s purchase of Palmetto Primary Care Physicians for $110 million, and Northwell Health’s acquisition of Garden OB/GYN, a fertility and women’s health clinic with 10 locations in New York.
Hospital deals remain small
In the first four months of 2026, Hospital transactions have been smaller and strategic. The average revenue of acquired hospitals is down year over year: $243.5 million in 2026 versus $298.1 million in 2025, according to recorded transactions in our LevinPro HC database. Average bed counts are under 150, and nearly every deal is for a single, unaffiliated hospital. With only one health system merger this year as well, the results indicate that organizations are much more selective in their acquisition strategy, not just chasing scale for its own sake.
Universal Health Services’ acquisition of Talkspace
The largest deal from a health system was Universal Health Services’ (UHS) $835 million acquisition of Talkspace, one of the most widely known telebehavioral healthcare companies in the United States. The deal is one of the largest investments by a health system in telehealth and will help UHS expand its reach in outpatient and talk therapy.
Talkspace has a network of about 6,000 professionals offering virtual therapy, psychiatry and medication management. Patients can connect with their clinicians via video, audio, chat or asynchronous text messaging. Talkspace’s platform serves both employers and health plans. According to its 2025 annual report, it generated $228.9 million in revenue.
UHS already has a significant presence in inpatient behavioral health, with nearly 350 facilities nationwide, but Talkspace will help supplement that revenue stream and bring more patients into its ecosystem. While other health systems are focusing on building their outpatient networks through brick-and-mortar locations, UHS is taking a different approach by leaning into telehealth and digital health instead.
Florida and Texas remain geographic hot spots, but Ohio has emerged as a top destination
In the healthcare M&A industry, Florida and Texas (along with California) are typically popular states with investors due to their demographics, favorable reimbursement structures and specific regulatory shifts. That remains true in 2026 for health systems, with four deals in Florida and six in Texas. There has also been plenty of activity in Ohio, with organizations looking to expand their market share in the state.
TriHealth and The Christ Hospital, two Ohio-based health systems, have both been acquiring outpatient medical buildings in the state. Organizations such as Dayton Children’s and Cincinnati Children’s Hospital each added a new pediatric physician group to their networks.
Ohio is also experiencing a population surge, prompting healthcare organizations to expand to meet the increased demand. And unlike states such as Florida, which are dominated by systems like HCA Healthcare and Orlando Health, Ohio has far less competition, giving organizations room to expand.
