Literature Review

Addus HomeCare expects 2024 acquisitions Hospice News; by Jim Parker; 5/7/24Addus HomeCare Corp. is poised for further acquisitions, potentially including some hospice deals. The company is seeking to pair its clinical services with its personal business in its existing markets. This is a cornerstone of its acquisition strategy. But Addus Chairman and CEO Dirk Allison does not rule out the possibility of moving into new markets if circumstances are right. ... When examining new markets, Addus focuses on regions where they can quickly become the largest or second-largest provider by market share, according to CFO Brian Poff. ... Addus’ roughly 33,000 employees provide hospice, home health and private duty nursing services across more than 200 locations in 22 states.

Pennant acquires Utah home health and hospice provider Pennant Group Press Release, Eagle, Idaho; 5/1/24 The Pennant Group, Inc., the parent company of the Pennant group of affiliated home health, hospice, home care and senior living companies, today announced that it has acquired South Davis Home Health and South Davis Hospice (“South Davis”), which provides skilled home health and hospice services in Davis County, Utah. “This acquisition provides us with an opportunity to further expand in the state of Utah, and will complement our agencies throughout central and northern Utah,” said Brent Guerisoli, Chief Executive Officer of Pennant.

Tenet adds 45 ASCs, sells 9 hospitals in Q1Becker's Hospital CFO Report; by Alan Condon; 5/1/24 In the first quarter, Dallas-based Tenet Healthcare sold nine hospitals while its outpatient business United Surgical International Partners acquired 45 ambulatory surgery centers and added 32 service lines. Tenet has increased the number of ASCs in its portfolio to 512 and decreased the number of hospitals it operates to 49, highlighting the company's expectation that its ASC business will drive long-term growth as care continues to shift from inpatient to outpatient settings. Tenet posted a net income of $2.2 billion in the first quarter — up from $143 million in the same period last year — and aims to spend about $250 million a year on ASC mergers and acquisitions. 

Ensign Group buys 7 nursing homes in 6 states Modern Healthcare; by Diane Eastabrook; 5/1/24 Senior living services company Ensign Group acquired seven skilled nursing facilities in six states, as well as a long-term acute care hospital. The deals closed Wednesday [5/1], the same day Ensign Group will report first quarter 2024 earnings. The acquisitions include: [click on the title's link for the list] ...

Premier Physician Network partners with Empatia on palliative care Hospice News; by Jim Parker; 4/30/24 Premier Physician Network (PPN) has launched an integrated palliative program among its medical group operations, in partnership with agilon health (NYSE: AGL) and its palliative arm Empatia. The program, branded as Senior Health Connect, will provide a palliative care program for Medicare Advantage patients who suffer from serious illnesses. Senior Health Connect is based on agilon’s palliative care model. “Our role there is as a partner. We bring technology. We bring insights. We can bring powerful data and care pathways,” Dr. Benjamin Kornitzer, agilon’s chief medical officer, previously told Hospice News. 

Deciphera Pharmaceuticals to be acquired by Ono Pharmaceutical for $2.4 billion LevinPro HC; 4/30/24Deciphera Pharmaceuticals announced on April 29 that it has entered into a definitive merger agreement with Ono Pharmaceutical Co., Ltd. to be acquired for a total equity value of $2.4 billion. Upon completion, Deciphera will operate as a standalone business of Ono, from its headquarters in Waltham, Massachusetts. 

Vitas bullish on hospice, palliative care acquisitions following Covenant deal Hospice News; by Holly Vossel; 4/25/24 Chemed Corp. ... subsidiary Vitas Healthcare is ramping up its strategic growth plans in both hospice and palliative care amid rising demand for these services. Vitas earlier this month completed its $85 million acquisition of Covenant Health and Community Services’ hospice operations and one assisted living facility location. Announced in March, the deal marked the company’s first purchase in several years. More transactions are on the horizon amid changes in the marketplace and increased clinical capacity, according to Vitas Chairman and CEO Nick Westfall.

PE-Backed Legacy Hospice acquires HomeCare HospiceLevin Associates; by Avery Swett; 4/19/24 Legacy Hospice, backed by the Chicago-based private equity firm Prairie Capital, announced this week its acquisition of HomeCare Hospice ... HomeCare Hospice is a leading provider of hospice and palliative care services throughout the state of Mississippi. The company operates four locations across the state. 

CHS to sell Tennessee hospital Becker's Hospital Review, by Molly Gamble; 4/18/24 Community Health Systems is preparing to sell off a 351-bed hospital in Tennessee. The Franklin, Tenn.-based health system announced April 18 that it has entered into a definitive agreement to sell 351-bed Tennova Healthcare – Cleveland (Tenn.) to Hamilton Health Care System in Dalton, Ga., for $160 million in cash. The transaction is expected to close in the third quarter of 2024. Earlier this year, CHS CEO Tim Hingtgen said the 71-hospital company was evaluating interest for sales that could yield more than $1 billion in proceeds. In 2023, CHS sold hospitals in West Virginia, Arkansas, and Florida.

Private equity healthcare bankruptcies spiked in 2023, with more expected this year McKnights Senior Living, by Kathleen Steele Gaivin; 4/18/24 Private equity healthcare bankruptcies hit a record high last year, with more expected this year, according to nonprofit Private Equity Stakeholder Project. “The healthcare default and bankruptcy wave is projected to continue in 2024 as companies are increasingly facing credit rating downgrades and potential defaults – and most of the companies at the highest risk are owned by private equity firms,” the organization reported. 

HCA Healthcare faces more Mission Health-related allegations Modern Healthcare, by Alex Kacik; 4/9/24Buncombe County in North Caroline seeks to join state Attorney General Josh Stein’s (D) lawsuit against HCA Healthcare alleging the health system shirked its Mission Health acquisition agreement. When HCA acquired Asheville, North Carolina-based Mission for $1.5 billion in 2019, Stein approved the transaction as long as HCA maintained services and increased behavioral health capacity, among other conditions. Stein in December sued HCA, alleging the Nashville, Tennessee-based for-profit hospital chain has failed to meet those terms. 

California bill would impose more controls on private equity investments in healthcare McKnights Senior Living, by Kathleen Steel Gaivin; 4/9/24 A bill under consideration by the California State Legislature would “add scrutiny on private equity companies when considering healthcare investments, amplifying the pressure already imposed by enforcement agencies in California and throughout the country,” attorneys from Polsinelli told the McKnight’s Business Daily on Monday. ... According to attorneys at Sidley Austin law firm, the legislation would affect “direct and indirect purchases of a material amount of assets and operations of a healthcare facility or provider; changes in voting control of a healthcare facility or provider; or direct and indirect changes in control over the healthcare services or operations of a healthcare facility or provider.”