Literature Review

Federal report highlights private equity, consolidation concerns Modern Healthcare; by Hayley Desliva; 1/16/25 Three federal agencies on [1/15/25] said "more effective and vigorous" enforcement is needed to protect patients harmed by healthcare's continued consolidation. In a report released just days before a new administration takes over, the Health and Human Services Department, Federal Trade Commission and Justice Department said comments they sought earlier this year on the state of the industry made clear that worries about access to services and costs have intensified as consolidation and private equity's role have grown. ... The report noted several areas of concern: 

HHS targets private equity, pushes for more SNF ownership transparency in new report McKnights Long-Term Care News; by Zee Johnson; 1/16/25 A new federal report is calling for greater transparency in long-term care ownership, citing “growing consolidation in the healthcare sector and the lack of meaningful competition” as main drivers in decreased patient care quality and caregiver well-being. The Department of Health and Human Services released its report Wednesday. “HHS Consolidation in Health Care Markets RFI Response” was created in consultation with the Department of Justice and the Federal Trade Commission. Report authors examined a broad range of settings and deals in the healthcare sector, ultimately identifying two major trends: increasing consolidation in certain healthcare markets and a recent influx of private equity and other private investors. Some providers support the push for more ownership transparency, saying private equity acquisitions of previously nonprofit-owned healthcare providers is a symptom of a broken system.

VITAS eyeing expansion in 12 states Hospice News; by Jim Parker; 1/14/25 Historically, VITAS Healthcare has relied heavily on organic growth, a strategy the company is not turning away from. However, it may add more acquisitions to the mix. VITAS is a subsidiary of Chemed Corp. (NYSE: CHE). The company this year made its return to the M&A market after a hiatus of several years. In April, VITAS acquired Covenant Health and Community Services’ hospice operations as well as one assisted living facility in an $85 million deal. Now, the company is seeking out other targets, with an emphasis on Certificate of Need states. “There are at a minimum 12 states we don’t operate in that we think are very attractive to us, and we are out actively sourcing deals, and we expect some of that deal flow to continue to come through here in 2025 and beyond …” VITAS CEO and Chairman Nick Westfall said during the JP Morgan Healthcare conference. “We think we’re in the early roads of really an ongoing consolidation inside of the space.”

PruittHealth acquires family-owned skilled nursing centers in middle Georgia GlobeNewswire, PruittHealth, Warner Robbins, GA; 1/9/25 PruittHealth, a family-owned and Georgia-based provider of post-acute care, today announced the purchase of two new health care centers from industry leader Debbie Meade and her Georgia-based organization Health Management. PruittHealth took over the operations of Eastview Nursing Center in Macon and Southern Pines Nursing Center in Warner Robins on December 31. The locations were rebranded as PruittHealth – Lakeside and PruittHealth – Warner Robins.

UnitedHealth, Amedisys ask judge to toss antitrust lawsuit Modern Healthcare; by Diane Eastabrook; 1/9/25UnitedHealth Group and Amedisys asked a federal judge Wednesday to either dismiss a government lawsuit over their planned merger or require the Justice Department to better define where the deal would stifle competition. The motion is the latest chapter in UnitedHealth Group’s 18-month effort to acquire home health and hospice company Amedisys for $3 billion. In November, the Justice Department filed a lawsuit to block the deal, claiming it would stifle competition. ... The request for a dismissal came days after UnitedHealth Group and Amedisys backed away from a deal to sell some home health and hospice locations to Dallas-based Vital Caring Group to alleviate antitrust concerns.

Renovus Capital Partners announces strategic partnership with Superior Health Holdings The Alvin Sun, Wayne, PA; by Renovus Capital Partners, LLC; 1/7/25 Renovus Capital Partners ("Renovus") today announced a strategic partnership with Superior Health Holdings, Inc. ("Superior" or the "Company"), a leading provider of home health and hospice services throughout Louisiana. ... Superior was formed in 2021 as an aggregation of several agencies providing similar services throughout Louisiana and has since grown both organically and through strategic acquisitions, led by Chief Executive Officer, David Martin. ... Superior Health Holdings, Inc., based in Baton Rouge, LA, is a full-service family of agencies offering hospice and home health services.

Masonicare completes merger with UMH, facility acquisition McKnights Senior Living; by Kathleen Steele Gaivin; 1/6/25 Wallingford, CT-based Masonicare has completed its planned merger with United Methodist Homes, the companies said Thursday in a joint statement. Masonicare Corp. is Connecticut’s largest not-for-profit senior living and care organization, offering independent living, assisted living, memory care and skilled nursing as well as short-term rehabilitation, respite care and hospice care. UMH, a 150-year-old organization, has five locations in the Nutmeg State. The communities provide independent living, assisted living, memory care, skilled nursing and short-term rehab. The merger moves UMH under the Masonicare brand and extends to UMH access to Masonicare’s comprehensive continuum of care, the companies said.  Also on Jan. 2, Masonicare announced the acquisition of Atria Greenridge Place in Rocky Hill, CT, rebranding the assisted living and memory community to Masonicare at Greenridge Place.

Hospice M&A market to ‘return to sanity’ in 2025 Hospice News; by Holly Vossel; 1/2/25The hospice mergers and acquisitions market has seen a host of changes in recent years, with buyers and sellers examining a range of risks and opportunities in the field this year. The industry saw a flurry of M&A activity in 2019 and 2020, with record high valuations and deal volume. Subsequent years saw cooling periods that left many operators wondering what’s next in store as 2025 unfolds. The previous “buy, buy, buy” mentality among hospice investors has morphed into a more disciplined strategic approach, according to New Day Healthcare LLC CEO G. Scott Herman. Certain lessons learned are driving future hospice investment decisions, particularly those around valuations and keys to sustainable growth, Herman said during a recent Hospice News Elevate podcast. [Click on the title's link to continue reading.]

How private investment is becoming a driving force behind PACE Modern Helathcare; by Diane Eastabrook; 12/23/24 2025 could be the year a 50-year-old program that keeps older adults out of nursing facilities goes mainstream as for-profit companies innovate and launch more programs. Habitat Health, Seen Health, One Senior Care and InnovAge are planning to expand Programs of All-Inclusive Care for the Elderly from California to Ohio. These investor-backed organizations are scaling and innovating PACE at a time when more states are offering the Medicare-Medicaid program for frail older adults, and as legislation before Congress could make its services more widely available. Still, these for-profit programs face administrative hurdles and high start-up costs that have hamstrung PACE for decades.

Care Synergy and RCC Medical Equipment announce plans to form healthcare joint venture Economy Press Releases, Denver, CO; by Tim Bowen; by 12/19/24 Care Synergy and RCC Medical Equipment Co. have agreed to form a joint-venture partnership to provide enhanced healthcare services throughout the Colorado Front Range region. Together, Care Synergy, a leading healthcare management service organization, and RCC Medical Equipment Co. will provide high-quality healthcare equipment to the patient populations of Care Synergy’s healthcare affiliates including The Denver Hospice, Colorado PACE, Pathways Hospice, Pikes Peak Hospice & Palliative Care, and Colorado Visiting Nurse Association (CVNA). “The partnership between Care Synergy and RCC Medical Equipment is important to the advancement of hospice care, palliative care, and home health in Colorado,” stated Tim Bowen, president and CEO of Care Synergy. ... In early 2025, the partnership will initially focus on caring for the Weld County and Larimer County patient populations served by Pathways Hospice. However, the plan is to expand service to the Denver metropolitan area and Colorado Springs in late 2025 and 2026.

Joining forces: 2024’s hospice investment, consolidation trendsHospice News; by Holly Vossel; 12/18/24 Hospice investment trends took myriad routes this year, seeing a few common threads occurring among nonprofit and for-profit entities that hint at where the market may be heading. The scope of hospice deals in 2024 encompassed joint ventures and collaborative affiliations in addition to acquisitions. Some of these transactions were fueled by value-based reimbursement and unmet needs among underserved patients. Rising demand, workforce growth and organizational culture are three significant pieces driving much of the recent hospice merger and acquisition (M&A) activity, according to Andrew Molosky, president and CEO of Chapters Health System, a large Florida-based nonprofit hospice provider. 

Kno2 and Pennant announce strategic partnership to revolutionize patient care through QHIN services GlobeNewswire - Kno2, Boise, ID; by Kno2; 12/17/24 Kno2, [a company of] healthcare communication, announced today a partnership with The Pennant Group, Inc (NASDAQ: PNTG) to drive automation and innovation to deliver patient care in the home. Under the partnership, Pennant Group, a holding company of affiliated home health, hospice and senior living companies, will join Kno2’s Qualified Health Information Network (QHIN).