Literature Review

Inside Amazon's strategy to partner with digital health companies Modern Healthcare; by Brock E.W. Turner; 4/15/25 While Amazon's splashy acquisitions have generated significant buzz, a foundational piece of the technology and e-commerce giant's healthcare business is focused on partnerships with digital health companies. Amazon launched its Health Benefits Connector in January 2024 with digital health unicorn Omada Health for patients with high blood pressure and diabetes. The service allows users to input information about their insurance plan and potentially identify covered services from Amazon’s partners. 

Compassus, Providence JV gains ground after concerns Home Health Care News; by Audrie Martin; 3/28/25 In February, Providence, a not-for-profit health system serving the Western U.S., and Compassus, a national provider of integrated home-based care services, completed the first phase of a joint venture (JV) focused on home health, hospice and community-based palliative care. However, Providence employees expressed concerns regarding cost-cutting measures and staffing issues. Specifically, critics of the JV voiced concerns that the deal would result in cost-cutting measures, increased staff workloads and reduced patient services. Compassus senior vice president and chief marketing and communications officer, Kathleen Winn, told Home Health Care News that partnerships like Compassus’s JV with Providence greatly benefit hospitals and health systems by allowing patients to move from an inpatient environment to home-based care and avoiding readmissions through careful monitoring. [Continue reading ...] 

How hospital merger oversight is shifting deal-making Modern Healthcare; by Alex Kacik; 3/12/25 Health systems are increasingly pursuing mergers and acquisitions in the South, a region where demand for care is growing and there are fewer regulatory barriers. More than a dozen states have passed laws over the past several years designed to increase oversight of healthcare transactions, but Southern states have largely stayed on the sidelines. As a result, deals involving hospitals are expected to pick up in the South, particularly in markets that feature growing populations, a high number of Medicaid patients and less stringent merger reviews, merger and acquisition advisers said. Potential Medicaid cuts could also drive up deal-making in the 16-state region spanning from West Virginia to Texas, as well as Washington, D.C., advisers said. 

13 hospital transactions in 1 week Becker's Hospital Review; by Madeline Ashley; 3/4/25 The end of February into early March saw a wave of hospital transactions, signaling a shift in healthcare ownership and operations across the country. Below are the 13 hospital transactions that Becker's has reported on since Feb. 27:

VITAS’ 'powerhouse’ growth in hospice hitting ‘all-time highs’ Hospice News; by Holly Vossel; 2/27/25 Florida-based VITAS Healthcare is anticipating fruitful hospice growth on its horizon. The Chemed Corp. (NYSE: CHE) subsidiary has seen record-highs in patient census volumes and is ramping up strategic plans to expand its geographic footprint across its home state. Acquisitions and de novos will make up an important mix of VITAS’ expansion, Chairman and CEO Nick Westfall said in Thursday’s earnings call. The company is optimistic about future opportunities in the Southeast, executives indicated. [Click on the title's link to continue reading.]

New Day Healthcare acquires Christian Senior Care Services  Hospice News; by Jim Parker; 2/20/25 New Day Healthcare has acquired the home-based care company Christian Senior Care Services in Houston for an undisclosed sum. The deal, New Day’s 13th to date, expands the company’s personal care services division into five additional counties in the Houston metro area. The operation will continue to operate under its current brand, and the entire staff will remain in place. ... The transaction adds personal care services to New Day’s hospice and home health operations in the Houston area, a key step in the provider’s efforts to build out a multi-faceted continuum of care. ... Similar to national demographic trends, a growing aging population is driving demand for hospice in Texas. Seniors 65 and older represent 13.8% of the Lone Star State’s overall population, according to the U.S. Census Bureau.

How the DOJ-UnitedHealth Group lawsuit could change hospice M&A Hospice News; by Jim Parker; 2/11/25 A U.S. Justice Department (DOJ) victory in its lawsuit to block UnitedHealth Group’s (NYSE: UNH) acquisition of Amedisys is unlikely to have a cooling effect on hospice M&A, according to some experts. The UnitedHealth Group subsidiary Optum in June 2023 agreed to acquire Amedisys in a $3.3 billion deal. Optum in February 2023 also acquired the home health and hospice provider LHC Group for $5.4 billion. DOJ in December 2024 filed the lawsuit to kill the deal. The state attorneys general of Maryland, Illinois, New Jersey, and New York are also plaintiffs in the suit. ... DOJ’s chief concern is that the combination of the two companies would dampen competition in the hospice and home health space. Should the transaction proceed, Optum would control 30% or more of the home health or hospice services in eight states, according to the Justice Department’s complaint.

Kroger partners with Express Scripts to expand pharmacy services Becker's Hospital Review; by Alexandra Murphy; 2/6/25 Cincinnati-based Kroger Health has reached a new agreement with Express Scripts, the pharmacy benefit services arm of Evernorth, to provide access to prescription medications and health services at the Kroger Family of Pharmacies for Express Scripts Customers. Under the new agreement, the Kroger Family of Pharmacies will resume serving customers in Express Scripts' Medicare Part D and Tricare/Department of Defense plans, according to a Feb. 5 Kroger news release. This comes after Kroger ended its contract with Express Scripts in September of 2022, after months of unsuccessful negotiations over a new agreement. 

Bristol Hospice acquires St. Agatha Comfort Care Hospice News; by Jim Parker; 2/6/25 Bristol Hospice has acquired St. Agatha Comfort Care in Las Vegas for an undisclosed amount. ... Bristol is a portfolio company of the private equity firm Webster Equity Partners. The company operates 64 locations across 25 states, employing more than 3,000 professionals. The hospice provider has indeed been on a growth trajectory. In June 2024, Bristol Hospice acquired Mississippi-based Mid-Delta Hospice, a move that marked its entry into that state. Bristol has been a prolific buyer in the M&A market during the past five years, but more recently it has leaned harder into its de novo strategy. In August of last year, Bristol Hospice opened four new locations within a single week in three different states.

Baptist Health announces joint venture to enhance home health services Lane Report, Louisville, KY; 1/31/25 To further expand the delivery of high-quality care to a growing population, Baptist Health announced a joint venture with national home health leader Alternate Solutions Health Network (ASHN) to enhance services across Kentucky, southern Indiana and southern Illinois. Effective March 3, the joint venture will be owned by Baptist Health and ASHN and will continue operating as Baptist Health Home Care. 

Brightspring Health Services, Inc. enters into definitive agreement to divest Community Living business to Sevita; reports preliminary 2024 financial results and provides 2025 guidance excluding Community Living The MarCom Journal, Louisville, KY; by Leigh White; 1/20/25 BrightSpring Health Services, Inc. (“BrightSpring” or the “Company”) (NASDAQ: BTSG), a leading provider of home and community-based pharmacy and health services for complex populations, today announced it has entered into a definitive agreement to divest its Community Living business, namely ResCare Community Living, to Sevita, a leading provider of home and community-based specialty health care, for $835 million in cash consideration, subject to customary adjustments. The transaction is expected to close in 2025, pursuant to regulatory approvals and typical closing conditions. Following the divestiture, BrightSpring’s Provider Services will be comprised of Home Health and Hospice, Personal Care, Rehabilitation Services, and Primary Care. 

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.