Literature Review

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.”

Lutheran Senior Services/Diakon agreement forms one of largest US nonprofit LTC organizations McKnights Senior Living, by Kathleen Steele Gaivin; 3/29/24 Diakon Senior Living operations and its four continuing care retirement / life plan communities will become part of Lutheran Senior Services under an agreement ... that the organizations say will create one of the largest nonprofit senior living and care organizations in the country. The transaction is pending regulatory approvals and is expected to close this summer.

FTC continues to challenge $320M Novant, CHS deal Becker's Hospital Review; by Naomi Diaz; 3/29/24The Federal Trade Commission filed court documents on March 25 seeking a preliminary injunction to bar Winston-Salem, NC-based Novant Health from its $320 million acquisition of two North Carolina hospitals from Franklin, TN-based Community Health Systems. According to court documents filed in the U.S. District Court for the Western District of North Carolina, the FTC alleged that Novant Health's proposed acquisition ... would "irreversibly consolidate the market for hospital services in the Eastern Lake Norman Area in the northern suburbs of Charlotte."

$45B worth of physician group acquisitions since 2019 Becker's ASC Review, by Paige Haeffele; 3/28/24 Here are 10 of the biggest-budget acquisitions of physician groups, totaling approximately $45.3 billion, as reported by Becker's since 2019: ...

M&A volume may shift from hospice to home health Hospice News, by Jim Parker, 3/26/24 Though many expect a hospice M&A rebound in 2024, the scales are tipping in favor of home health companies among buyers. Generally, signs point to heightened buyer activity this year, particularly among private equity as interest rates start to come down. 

Personal health companies up for sale as costs rise Modern Healthcare, by Diane Eastabrook; 3/26/25 Labor shortages, tighter access to capital and low reimbursements from some payers could force more healthcare providers to shed non-core operations, such as personal care and post-acute care, according to analysts. ... More than three-quarters of 51 active buyers of home health, hospice and personal care companies said they planned to increase acquisitions in 2024, ...

Private equity group Waud Capital Partners acquires Senior Helpers McKnights Home Care, by Adam Healy; 3/21/24 Private equity firm Waud Capital Partners is acquiring Senior Helpers, a home care franchise company with nearly 400 locations in the United States, Canada and Australia, for an undisclosed amount, according to an announcement about the deal released Thursday. ... Advocate Health, which owns Senior Helpers, is the third-largest nonprofit health system in the US, according to a release. Senior Helpers provides wellness services such as meal planning, grocery shopping, medication management, transportation, companionship and assistance with activities of daily living. 

Fitch: Scrutiny of private equity deals is short-term positive Modern Healthcare, by Hayley Desilva; 3/18/24 Increased federal scrutiny of healthcare mergers and acquisitions is expected to have mixed consequences for providers' credit, particularly when private equity buyers are involved, according to Fitch Ratings. ... In December, the [Federal Trade Commission] FTC updated its merger guidelines to foster competition across all industries, including healthcare. However, healthcare acquisitions are expected to increase this year as financial conditions improve.

[UPDATED] Skilled Nursing giant PACS Group files for IPO as it looks to expand footprint Skilled Nursing News, by Zahida Siddiqi; 3/14/24 PACS Group filed for an initial public offering with the Securities and Exchange Commission on Wednesday, citing focus on growth plans in its filing. ... The Farmington, Utah-based PACS Group is one of the largest skilled nursing providers with more than 200 nursing facilities across nine states and serves over 20,000 patients daily. It plans to list on the NYSE under the symbol PACS. 

The identity dilemma: Navigating rebranding decisions in home health M&A Home Health Care News, by Patrick Filbin; 3/14/24 ... While some companies swiftly integrate acquired businesses into their brand and splash their logo, marketing materials and likeness on the newly acquired assets, others opt to maintain the selling company’s identity. In home-based care, the decision to “rebrand or retain” takes into account a number of factors, sources told Home Health Care News. They include operational efficiency, patient/client retention, market positioning and more.

Pennsylvania health systems are partnering up Becker's Hospital Review, by Andrew Cass; 3/8/24Kittanning, Pa.-based Armstrong County Memorial Hospital signed a definitive agreement March 6 to join Pennsylvania Mountains Care Network, marking the latest in a series of partnerships, mergers and acquisitions between hospitals and health systems in the Keystone State.