Literature Review

Jefferson-Lehigh Valley Health merger process moves forward Modern Healthcare; by Caroline Hudson; 5/15/24 Jefferson Health and Lehigh Valley Health Network have taken a major step toward completing their proposed merger. The two health systems have signed a definitive agreement to merge, according to a Wednesday news release. The organizations said they plan to create a $15 billion regional nonprofit system with more than 65,000 employees, which will operate 30 hospitals and more than 700 care sites in Pennsylvania and New Jersey. The health systems expect the deal to close this summer, pending regulatory approval, according to the news release.

Medicaid 80/20 rule could drive surge in home care deals Modern Healthcare; by Diane Eastabrook; 4/10/24 Private equity firms and large home care companies could soon be going head to head to buy smaller personal care operators expected to exit the industry because of a new regulation. The potential for industry consolidation stems from the Centers for Medicare and Medicaid Services’ Ensuring Access to Medicaid Services rule that will require home care companies to spend 80% of Medicaid reimbursements on caregiver wages. Mergers and acquisitions advisers predict the so-called 80/20 rule, finalized April 22, could prompt many smaller operators to sell.

Financial strain on nursing homes sparks buying binge Modern Healthcare; by Diane Eastabrook; 5/8/24Skilled nursing facility deals increased more than 80% in the first quarter of 2024 compared with the same period in 2023. There were 57 nursing home acquisitions valued at nearly $1.4 billion in the first quarter of this year compared with 31 deals valued at $448 million during the same period last year, according to Levin Associates, which tracks healthcare mergers and acquisitions. ... Last year was the worst year for healthcare bankruptcies in five years, according to restructuring and consulting firm Gibbins Advisors. Senior living and pharmaceuticals accounted for half of the 79 Chapter 11 filings in healthcare in 2023, the company said. It predicted continued distress for the senior care industry this year in a January research report.

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] ...

TRU Community Care and St. Paul’s Senior Services explore strategic partnership to transform senior care landscape My Prime Time News, Lafayette, CO; 4/29/24TRU Community Care and St. Paul’s Senior Services are exploring affiliation as two well-established nonprofit healthcare providers in Colorado and California, respectively. Under the leadership of Scott Gresser, President and CEO of TRU Community Care and Michael McHale, President and CEO of St. Paul’s Senior Services, organizational integration would allow TRU and St. Paul’s to expand the serious illness continuum of care that each currently provides, including senior services from independent living to memory care, PACE (Program of All-Inclusive Care for the Elderly), palliative and hospice care, and community support programs such as bereavement services. 

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. 

Analysts not ruling out Cigna, Humana mergerBecker's Payer Issues, by Rylee Wilson; 4/22/24A merger between Humana and Cigna could still be in the cards according to one analyst, Bloomberg reported April 22. "The math now works for a [Cigna and Humana] fusion," Jeffries analyst David Windley wrote April 22. Since the two companies abandoned a proposed merger in December, Cigna's stock prices have risen by 37% and Humana is down 31%, according to Bloomberg. Cigna could strike a deal to acquire Humana for around $420 per share, Mr. Windley wrote in a note to clients. An acquisition would add to Cigna's growth if it does not pay more than $470 per share for the company, according to Jeffries.