Literature Review

Legislation aims to increase scrutiny of private equity healthcare acquisitionsMcKnights Senior Living, by Lois A. Bowers; 2/27/24Legislation introduced ... in [California] would give the attorney general oversight of private equity and hedge fund acquisitions of long-term care and other healthcare facilities. Backers of AB 3129 say that it would “safeguard fair competition and root out anticompetitive practices by dominant corporations” as well as “ensure that the acquisitions are in the public interest.” Under the bill, the AG could grant, deny or impose conditions to a change of control or acquisition between a private equity group or hedge fund and a long-term care or other healthcare facility.

Top home health & hospice investors of 2023Levin Associates; 2/20/24The most active Home Health & Hospice investor during 2023 was The Pennant Group, which completed the year with five deal announcements across the home hospice, home health and multi-service specialties. The company made acquisitions in Arizona, Idaho, Oklahoma, Texas and Colorado. [Click on the title's link for more investors and extensive details.]

Hospice of Western Reserve plans to merge with Hospice of North Central OhioCrain's Cleveland Business, by Paige Bennett; 2/6/24Hospice of the Western Reserve, a provider of palliative and end-of-life care, caregiver support and bereavement services and one of Cleveland’s largest nonprofits, intends to merge with the Hospice of North Central Ohio.

Predicting private equity’s involvement in home health care in 2024Home Health Care News, by Patrick Filbin; 2/2/24Health care’s share of global private-equity (PE) deal count peaked at 13.7% in 2020. Three years later, that number fell to 10.8% — its lowest level since 2015. Compared to the bustling activity of 2021, home-based care dealmaking was mostly sluggish in 2023 and has followed that same trend.

SSM Health assumes ownership of Visiting Nurse Association of Greater St. LouisSSM Health; 2/1/24SSM Health and Visiting Nurse Association of Greater St. Louis (VNA) announced today they’ve successfully completed a transfer of ownership of VNA’s health care services. Effective immediately, the exceptional services VNA is known for – including hospice care, Advanced Illness Management (AIM),community-based palliative care, private duty care, Visit-A-Bit, vaccination, wellness, and music appreciation programs – will now operate as part of SSM Health at Home.

Scrutinize private equity's involvement in health care: Higher prices, worse outcomes don't serve patients or providersThe Boston Globe, by The Editorial Board; updated 1/17/24... Private equity is not necessarily a bad form of ownership. It is often used to make companies more efficient. But it creates pressure to obtain short-term returns, and the strategies that pull profits from health care companies may not serve patients.

Fortis Health Further Grows Midwest Footprint With Latest AcquisitionHome Health Care News, by Joyce Famakinwa; 1/11/24Fortis Health has purchased Physiocare Home Health and Hospice, a Medicare-certified home health and hospice provider that operates in Indiana. Grant Avenue Capital — a middle-market private equity firm — provided the equity financing for the transaction.

New Day Healthcare acquires Compassion HospiceHospice News, by Jim Parker; 1/8/24The home health and hospice provider New Day Healthcare has acquired Texas-based Compassion Hospice for an undisclosed amount. The transaction expands New Day’s footprint to 29 locations, concentrated in Texas, Missouri, Kansas and Illinois. The company’s nearly 6,500 employees serve close to 100,000 patients annually across all of its business lines, including home health, hospice, pediatrics, clinical decision support and personal care. Compassion Hospice will not rebrand and will retain its current leadership.

The Wall Street Journal: Exclusive: Cigna nears deal to offload Medicare businessThe Wall Street Journal, by Laura Cooper, Anna Wilde Mathews and Lauren Thomas; 1/3/24Cigna is in advanced talks to sell its Medicare business in an about-face for the health-insurance giant, which had been expanding its footprint in the fast-growing sector. Cigna, which has been running an auction for the business, known as Medicare Advantage, is now in exclusive talks to sell it to Health Care Service Corp. for between $3 billion and $4 billion, according to people familiar with the matter. Editor's Note: Access to the full article requires a subscription to The Wall Street Journal

Pennant and John Muir Health enter into a home health joint venture in the Bay Area, CaliforniaGlobe Newswire; 1/2/24The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice, home care and senior living companies, today announced that it has closed on a home health joint venture with John Muir Health, a leading nonprofit integrated health system that serves communities throughout San Francisco’s East Bay Region. ... "Muir Home Health will bring together the deep experience of one of the Bay Area’s premier health systems with Pennant’s deep experience in managing and supporting the delivery of life-changing home health services, ..." said Brent Guerisoli, Pennant's Chief Executive Officer.

Mercy medical record transition heats up in bankruptcy courtThe Gazette (Cedar Rapids, IA)December 22, 2023Iowa City, IA—Among the complexities of a Mercy Iowa City bankruptcy sale to the University of Iowa is the transition of its electronic medical system—with any gap or abrupt termination of system operations posing “significant” threat to Mercy and its patients. 

Why Hospice M&A Could Rebound in 2024Hospice News, 12/22/23After a 2023 slump, health care dealmakers are voicing optimism for a 2024 rebound. Transaction volume declined in the hospice and home-based care space in 2023, following the two record-breaking prior years. Only three hospice deals took place in the third quarter of this year compared to 11 in Q3 2022 and 18 in the same period in 2021, according to data from the M&A advisory firm The Braff Group. But projections from Braff and PriceWaterhouseCoopers could signal an upward trend in the new year.

PwC—Cautious Optimism, Apprehension To Follow Nursing Home Dealmaking into 2024Skilled Nursing NewsDecember 20, 2023Dealmaking in 2024 comes with cautious optimism and some apprehension from industry leaders in health care, including those in the nursing home space, as deal volume continues to be buffeted by macroeconomic headwinds.