San Angelo, Texas-based health system Shannon Medical Center has signed an agreement to acquire River Crest Hospital, a local behavioral health center, from Universal Health Services. Financial terms of the deal were not disclosed. The acquisition is expected to be finalized in September 2024.

River Crest Hospital is an 80-bed behavioral health center. It offers behavioral health and addiction programs for children, adolescents, adults, and military members. Shannon currently has a 22-bed regional inpatient psychiatric facility that provides behavioral health services for adults and senior adults. Both also offer outpatient behavioral health programs. 

Shannon said the addition . . .

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Mergers & Acquisitions

2020 and 2021 saw record numbers of mergers, acquisitions, affiliations, and partnerships and this raises the strategic question for any executive team of a specialty provider organization, do they have market positioning for a sustainable future and can they address that issue with changes in scale. Almost every executive team is considering collaborations to keep their competitive advantage. It’s imperative to find out if those collaborations were successful in improving competitive advantage, as well as the “tricks of the trade” in making collaboration work.


Outpatient care, specialty services, and cost containment solutions are projected to drive merger and acquisition activity in the health care sector during 2026, according to a recent report by VMG Health. Increased deal volume is projected for physician practices, behavioral health, home-based care, and ambulatory surgery centers. Technology, including artificial intelligence (AI), is being used to strengthen diagnostics, automation, and workflow optimization, is emerging as a differentiator in health care mergers and acquisitions, particularly in… Read