Literature Review

Addus to buy Gentiva’s personal care assets for $350 million Home Health Care News; by Andrew Donlan; 6/10/24 Addus HomeCare Corp. is set to acquire Gentiva’s personal care assets for about $350 million.Those assets amount to over 16,000 home care patients per day, in Arizona, Arkansas, California, Missouri, North Carolina, Tennessee and Texas. Addus – which just left the state of New York – will fund the acquisition through its existing revolving credit facility. “We believe this acquisition is a great strategic fit for Addus, and we are excited about the opportunity to expand our personal care market coverage in seven states, including Texas and Missouri, which are new markets for Addus,” Addus CEO Dirk Allison said. ... Addus currently provides home care, home health care and hospice services to over 49,000 consumers through 214 locations spanning 22 states.

Why private equity hospice investors need to re-focus on patients Hospice News; by Jim Parker; 6/7/24 As private equity investors seek out hospice and other health care transactions, they should retrain their sights on potential benefits for patients in addition to financial metrics. Driving this is a changing regulatory environment as scrutiny heats up for both hospices and the private equity firms themselves. Tightened regulation in the hospice space has led to longer, more stringent diligence processes when it comes to buying and selling provider companies. This means that potential buyers are looking hard at compliance and quality metrics before completing a deal, along with the seller’s financials.

PACS Group subsidiaries to acquire 53 long-term care properties across 8 states McKnights Senior Living; by Kathleen Steele Gaivin; 5/24/24 PACS Group is on an accelerated growth trajectory since going public earlier this month. ... The Farmington, UT-based holding company announced plans Thursday for subsidiaries to acquire the operations of 53 skilled nursing facilities and senior living communities across eight western states. The properties currently are being operated by Prestige Care or Prestige Senior Living. The company anticipates that the transactions will close in the third quarter. PACS Group already is one of the country’s largest nursing home operators. Founded in 2013, the company’s portfolio includes more than 200 facilities, mostly SNFs but also some assisted living communities.

Steward proposes timeline for selling assets in bankruptcy Modern Healthcare; by Caroline Hudson; 5/20/24Steward Health Care is seeing interest from potential buyers of its 31 hospitals, particularly in Massachusetts and Arizona, and it hopes to complete sales this summer. The health system, which filed for Chapter 11 bankruptcy protection earlier this month, also is in advanced discussions with UnitedHealth Group's Optum to buy physician network Stewardship Health. Optum, which had been negotiating with Steward before the bankruptcy filing, submitted a "stalking horse" bid. A stalking horse bid is the initial bid on a bankrupt company's assets that helps set the minimum price for other potential buyers. Steward also is in discussions with "various third parties" for its northern Massachusetts facilities, the health system said in a bankruptcy court filing last week.

What healthcare REITs mean for providers, patientsModern Healthcare; by Hayley DeSilva; 5/14/24Steward Health Care's Chapter 11 bankruptcy filing is the latest example of the significant role real estate investment trusts play in healthcare. REITs have served as a financial solution for providers and health systems, allowing them to broaden their networks without as hefty a capital investment. Steward, for example, is the largest tenant of Medical Properties Trust, which bought Steward's real estate assets in 2016. The REIT, which also owns 10% of Steward, has approved $75 million in debtor-in-possession financing to help Steward maintain patient care while looking for operators for its hospitals.

Vitas’ acquisition pipeline likely growing Hospice News; by Jim Parker; 5/15/24 Vitas Healthcare, a subsidiary of Chemed Corp. is gearing up for potential acquisitions. ... VITAS is targeting its home state of Florida and other Certificate of Need (CON) states for potential deals, Michael Witzeman, vice president, CFO and controller at Chemed said during the Bank of America Securities Health Care Conference. “We certainly think that there’s a pipeline growing, and we have the resources on our balance sheet with cash and no debt to be able to really be a player in any of these,” Witzeman said. “We would like to be in states that have CON restrictions much more than an unrestricted state, but we certainly have the interesting inability when things come available to be able to jump on them.” ...

Around the nation: Steward Health Care puts hospitals up for sale following bankruptcyAdvisory Board; 5/10/24Steward Health Care, which filed for chapter 11 bankruptcy on Monday, has placed all its 31 hospitals in the United States up for sale in hopes of finalizing transactions by the end of the summer to address its $9 billion debt, in today's bite-sized hospital and health industry news from Georgia, Illinois, and Texas.

Enhabit concludes review of strategic alternatives Valdosta Daily Times; Press Release; 5/8/24 Enhabit, Inc., a leading home health and hospice provider, today announced Enhabit’s Board of Directors (the “Board”) has concluded the Company’s strategic review process, announced in August 2023, which was overseen by the Board with assistance from its financial and legal advisors, Goldman Sachs and Sidley Austin, respectively. After evaluating a full range of strategic alternatives, including a potential sale, merger or other transaction, the Board unanimously determined that continuing to execute on the Company’s strategic plan as an independent, public company is in the best interests of the Company and its shareholders at this time.

Second Opinion Expert announces strategic relationship with Intra Care Home Health Providers Cision PRWeb; by SecondOpinionExpert, Inc / PRNewswire; 5/3/24 SecondOpinionExpert, Inc. (SOE), a leading healthcare technology company, announced today that it has formed a strategic relationship with Intra Care Home Health Providers, Inc. and its affiliated home health and hospice companies. ... Intra Care Home Health Services, Inc., a Los Angeles, CA based healthcare company, along with the related Intra Care SFV, Inc., Specialized Home Health Services, Inc., and Intra Care Hospice, Inc., (Intra Care) will all work with SOE as part of this relationship.

Cigna Medicare Advantage sale advances as company raises outlook Modern Healthcare; by Lauren Berryman; 5/2/24 Cigna Group has taken a big step forward to exit the Medicare Advantage business, a strategy that may pay off given industry headwinds. ... The deal, announced in January for $3.3 billion, is on track to close in the first quarter of 2025, he said. Medicare Advantage carriers, including heavyweights CVS Health and Humana, are battling pressures related to higher medical costs, heightened regulatory scrutiny and slower enrollment growth.

Aetna hit with $900M in surprise MA costs, CVS Health report Modern Healthcare; by Nona Tepper; 5/1/24 CVS Health will launch a multiyear plan to boost Medicare Advantage profitability after its Aetna subsidiary recorded $900 million in higher-than-anticipated medical costs during the first quarter, President and CEO Karen Lynch said during an earnings announcement Wednesday. “We continue to evaluate our cost structure and productivity and will accelerate these and other initiatives over the next few months,” Lynch said.

CVS buys Medicare Advantage brokerage Modern Healthcare; by Nona Tepper; 4/30/24 CVS Health paid an undisclosed sum to acquire Hella Health, according to the Medicare Advantage brokerage's founder. Hella Health debuted in 2020 and claims to offer more than 3,000 Medicare plans from insurers such as CVS Health subsidiary Aetna, UnitedHealth Group subsidiary UnitedHealthcare and Humana.  

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.