Prime Healthcare Expands Footprint with Illinois and Maine Acquisitions

Health system's 'market cluster' strategy aims to build scale, stabilize distressed facilities, and create operational leverage.

Published on Feb. 21, 2026

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Ontario, Calif.-based Prime Healthcare has recently acquired hospital systems in Illinois and Maine as part of its 'market cluster' acquisition strategy. The approach involves entering or expanding in a region with multiple hospitals to build scale, stabilize distressed facilities, and create operational leverage. Prime's recent deals include the acquisition of eight Illinois hospitals from Ascension in 2025 and the acquisition of the three-hospital Central Maine Healthcare system in 2026.

Why it matters

Prime's market cluster strategy allows the health system to achieve economies of scale and operational efficiencies by consolidating multiple hospitals within a single geographic region. This approach is particularly important as hospitals face rising costs and reimbursement pressures, enabling Prime to better support struggling facilities and preserve access to care in underserved communities.

The details

Prime CFO Steve Aleman says the Illinois acquisition aligned closely with the system's operating 'playbook,' offering a 'market cluster presence' with vertical and horizontal service line integration, strong patient volumes, and multiple facilities within a single geography. Similarly, the recent acquisition of Central Maine Healthcare gave Prime a foothold in its 15th state. Prime plans to apply the same disciplined diligence and integration process to its new markets, including rapid implementation of new EHR systems and other operational improvements.

  • In March 2025, Prime acquired eight Illinois hospitals from Ascension.
  • In February 2026, Prime acquired the three-hospital Central Maine Healthcare system.

The players

Prime Healthcare

An Ontario, Calif.-based health system that has recently expanded its footprint through acquisitions in Illinois and Maine.

Steve Aleman

The CFO of Prime Healthcare who discussed the system's acquisition strategy and 'market cluster' approach.

Sunny Bhatia, MD

The president and chief medical officer of Prime Healthcare who discussed the benefits of the system's cross-market expansion.

Radha Savitala

A healthcare attorney who advised Prime's executive team on hospital transactions and recently co-founded Tenor Health Foundation with a similar community-focused, nonprofit hospital acquisition model.

Franciscan Health Olympia Fields

A 214-bed hospital in Illinois that Prime recently agreed to acquire.

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What they’re saying

“The Ascension [hospitals] checked many of the boxes that align with Prime's acquisition criteria … [and] had several positive attributes that other opportunities lacked.”

— Steve Aleman, CFO, Prime Healthcare (Becker's Healthcare Podcast)

“We look for hospitals where we believe we can make a meaningful impact, aligning our strengths with those hospitals' needs — particularly those serving the underserved, facing financial uncertainty or at risk of closure.”

— Sunny Bhatia, MD, President and Chief Medical Officer, Prime Healthcare (Becker's Healthcare)

“The traditional notion of simply putting dots on a map and acquiring hospitals doesn't make sense anymore. You need market focus to achieve the economies of scale required for recruitment, supply chain, labor costs and managed care agreements.”

— Radha Savitala, Co-founder, Tenor Health Foundation (Becker's Healthcare Podcast)

What’s next

Prime plans to apply the same disciplined diligence and integration process in Illinois, Maine, and any future markets it enters, including rapid implementation of new EHR systems and other operational improvements.

The takeaway

Prime's 'market cluster' acquisition strategy allows the health system to build scale, stabilize distressed facilities, and create operational leverage in new markets - a critical approach as hospitals face rising costs and reimbursement pressures. By consolidating multiple hospitals within a single region, Prime can achieve economies of scale and better support struggling facilities to preserve access to care in underserved communities.