Literature Review

2 years after its rebrand, CenterWell Home Health is set on tackling big goals Home Health Care News; by Andrew Donlan; 9/24/24 Kirk Allen, the president of home solutions at Humana Inc., is living a home health veteran’s dream. Right now, he is heads down on helping create a value-based home health model within CenterWell, Humana’s provider services arm. Home health leaders have always touted the extraordinary health and monetary value that can be derived from their services. Not many have had the opportunity to prove that out, however. Allen does. Humana owns CenterWell Home Health, which is one of the largest providers in the country. CenterWell also includes CenterWell Pharmacy and CenterWell Primary Care. Eventually, CenterWell Home Health wants to have 80,000 home health patients under its value-based model. ... After Humana fully acquired Kindred at Home, it divested the home care and hospice assets. With the large and remaining home health footprint, Humana created CenterWell Home Health.

State scrutiny pf UnitedHealth Group-Amedisys deal pushes timeline back further Home Health Care News; by Audrie Martin; 9/19/24 UnitedHealth Group’s acquisition of Amedisys is still pending. That could be due to a variety of factors, but one is clear: the Oregon Health Authority’s (OHA) ongoing review, which is expected to continue until at least the end of November. OHA’s Health Care Market Oversight (HCMO) program reviews health care business deals to ensure they do not harm the state’s citizens or communities. In July, both UnitedHealth Group and Amedisys submitted responses to the OHA’s request for information. The authority is still seeking public comments on this matter. In addition to the issue in Oregon, the deal has faced scrutiny from federal antitrust regulators, including the U.S. Department of Justice (DOJ).

Private Equity's impact on hospice care: The good, the bad, and the ugly of private equity TCN Talks - Teleios Collaborative Network; by Chris Comeaux; 9/18/24 In this episode, Private Equity's Impact on Hospice Care, The Good, the Bad, and Ugly of Private Equity, Chris interviews Laura Katz Olson, a professor of political science at Lehigh University.  It’s a fascinating discussion based on Laura’s book Ethically Challenged. During their conversation, they delve into the impact of private equity in the healthcare industry.  Private equity firms prioritize making oversized profits and have a short-term focus, often selling companies within six years, relying heavily on debt financing and putting the burden of servicing the debt on the acquired companies.  Leaving a company worse than when the started is the opposite of what leadership is supposed to do for any organization, especially one with such a critical mission. Editor's note: TCN /  Teleios Collaborative Network sponsors our newsletter. 

Antitrust lessons for healthcare roll-ups – and everyone else Competition Policy International - CPI Columns US & Canada; by Lauren F. Dayton & Swara Saraiya; 9/12/24 ... The practice described in the U.S. Anesthesia Partners suit, known as a “roll-up,” is a common strategy employed by private equity firms through which smaller businesses in adjacent markets are acquired and consolidated. Large healthcare networks acquire smaller practices for similar reasons. That consolidation enables companies to build a greater presence, operate more efficiently, and can allow them to attract better talent. But that same consolidation can also create the risk of anticompetitive effects. The FTC’s suit is noteworthy because federal competition regulators have historically focused on the companies themselves, not their financial sponsors. The case is in step with statements by competition regulators about increased scrutiny of the healthcare industry, and of acquisitions by private equity firms, in particular. ...

Mercy acquires Ascension hospital Becker's Hospital Review; by Alan Condon; 9/10/24 St. Louis-based Mercy has acquired Ascension's Via Christi Hospital in Pittsburg, Kan. The acquisition includes the hospital, its locations and related physician practices, but excludes Ascension Living Via Christi Village facilities and operations. The deal officially closed Sept. 1. Mercy, a 45-hospital system, now has three hospitals in Kansas: Mercy Hospital Pittsburg, Mercy Hospital Columbus and Mercy Specialty Hospital-Southeast Kansas in Galena. It also operates two primary care clinics in Pittsburg. "Whenever Mercy joins a new community, we want to hear from that community about what we can do to improve care and access for patients," Jeremy Drinkwitz, president of Mercy Joplin communities, said in a news release. "We want to ensure we are providing the right care where it's needed so patients can stay close to home. We'll be looking for the best ways to grow the already great services in place." 

Enhabit foresees smooth sailing on near-term hospice growth Hospice News; by Jim Parker; 9/5/24 Enhabit Inc. expects consistent hospice growth even as it contends with payer and reimbursement headwinds for its home health business. The home health and hospice provider recently terminated its home health contract with the Medicare Advantage payer UnitedHealthcare, a subsidiary of UnitedHealth Group, citing nine months of unsuccessful negotiations. In addition, Enhabit and the rest of the home health industry are facing a potential 1.7% rate cut from the U.S. Centers for Medicare & Medicaid Innovation’s proposed 2025 payment rule. Meanwhile, Enhabit’s hospice segment continues to grow sequentially.

Ensign Group expands with new Colorado and Kansas acquisitions Investing.com, San Juan Capistrano, CA; by AI and reviewed by an editor; 9/3/24 The Ensign Group , Inc. ... has expanded its portfolio with the acquisition of seven skilled nursing facilities in Colorado and one in Kansas, effective September 1, 2024. These facilities, which are now subject to long-term, triple net leases, bring Ensign's total operations to 323 healthcare facilities across fourteen states. The Colorado acquisitions include Desert Willow Health and Rehabilitation Center in Pueblo, Junction Creek Health and Rehabilitation Center in Durango, Pelican Pointe Health and Rehabilitation Center in Windsor, Riverbend Health and Rehabilitation Center in Loveland, Broadview Health and Rehabilitation Center and Westlake Lodge Health and Rehabilitation Center both located in Greeley, and Linden Place Health and Rehabilitation Center in Longmont. In addition, Ensign has acquired Prairie Ridge Health and Rehabilitation in Overland Park, Kansas. These latest acquisitions reflect the company's ongoing strategy to grow its presence in the healthcare sector by acquiring both well-performing and underperforming facilities.

Private equity ownership of US hospice centers boomed in recent years – studyThe Guardian; by Jessica Glenza; 9/3/24Investors spent about $1tn buying healthcare facilities over last decade, leading to reports of worsening patient care. Private equity investors are increasingly buying up hospice centers – healthcare facilities meant to focus on pain relief and emotional support for people near the end of their lives. The new study was published in the journal Health Affairs [Private equity acquisitions of hospices are increasing; Ownership remains opaque, by Melissa D. Aldridge, Lauren J. Hunt, Zelle Halloran, and Krista L. Harrison] and provides more evidence of how private equity have acquired firms using often sophisticated and opaque ownership structures. Although for-profit ownership is not new in US healthcare, the surge of private equity ownership is. Such investment groups have spent an estimated $1tn over the last decade, buying up hospitals and doctors’ offices.

For-profit Idaho home health powerhouse seeks expansion in OregonThe Lund Report; by Nick Budnick; 8/27/24Pennant Group wants to acquire home health and hospice agencies from Signature Group, an affiliate of Avamere Health. State health officials are reviewing a giant for-profit Idaho-based home health care company’s $80 million effort to buy home care and hospice companies around Oregon operated by Signature Group, also known as Avamere Health Care. Officials in the Health Care Market Oversight office of the Oregon Health Authority announced a 30-day public comment period on Aug. 23.

Why Optum thrives where other companies failed Becker's ASC Review; by Patsy Newitt; 8/16/24 UnitedHealth Group's Optum, parent company of Deerfield, Ill.-based ASC chain SCA Health, has seen massive growth in the last few years as other big healthcare networks face obstacles in reaching large-scale profitability. ... A key to Optum's success is its affiliation with a large insurance business. The Journal pointed to the "several financial incentives for an insurer to own a health provider, including that it pays itself." ... And Optum keeps growing. The company spent $31 billion on acquisitions in the last two years, The Oregonian reported May 13. ... UnitedHealth Group is facing scrutiny regarding the Change Healthcare ransomware attack in February. The attack delayed payment and claims processing for healthcare providers around the country, as UnitedHealth subsidiary Change Healthcare handles an estimated one in three healthcare transactions.

25 fastest-growing healthcare companies of 2024 Becker's Hospital Review; by Giles Bruce; 8/13/24 The Inc. 5000 list of the fastest-growing private companies in 2024, released Aug. 13, includes 320 that focus on health services. The magazine ranks the companies by percentage revenue growth over the last three years. Here are the top 25 health services firms that made the list this year (and where they rank): [Click on this title's link to continue reading]

LTM Group expands into Texas with latest home health acquisition Home Health Care News; by Audrie Martin; 8/12/24 The LTM Group announced the acquisition of Wichita Home Health Services Monday. The deal will add over 500 team members and more than 1,000 patients to the company’s network. The company provides – through multiple locations – home health, personal care, hospice and rehabilitation services. The organization collaborates with health care systems and payers to deliver care to patients in Indiana, Ohio, Michigan and Texas. ... [The] company will continue operating under the Wichita Home Health Services brand, and all local leadership will remain the same. The acquisition agreement was finalized last week, and the transaction is set to be completed in the next quarter.Notable Mentions: