Literature Review

Compassus, Providence JV gains ground after concerns Home Health Care News; by Audrie Martin; 3/28/25 In February, Providence, a not-for-profit health system serving the Western U.S., and Compassus, a national provider of integrated home-based care services, completed the first phase of a joint venture (JV) focused on home health, hospice and community-based palliative care. However, Providence employees expressed concerns regarding cost-cutting measures and staffing issues. Specifically, critics of the JV voiced concerns that the deal would result in cost-cutting measures, increased staff workloads and reduced patient services. Compassus senior vice president and chief marketing and communications officer, Kathleen Winn, told Home Health Care News that partnerships like Compassus’s JV with Providence greatly benefit hospitals and health systems by allowing patients to move from an inpatient environment to home-based care and avoiding readmissions through careful monitoring. [Continue reading ...] 

Global Partners in Care, Elea Institute partner to improve palliative care access worldwide Hospice News; by Jim Parker; 3/21/25 Global Partners in Care (GPIC) and Elea Institute have formed a partnership designed to extend access to palliative care services worldwide. The two organizations are currently working to convene teams of experts to meet in Dublin, Ireland, later this year. These experts will design a tangible framework for addressing barriers to palliative care access globally, including increasing awareness, workforce development, identifying policy and research gaps and preparing future leaders, according to John Mastrojohn III, CEO and president of Global Partners in Care. 

Walgreens sells to private equity firm Sycamore Partners Healthcare Brew - Pharma; by Nicole Ortiz; 3/11/25 Since December, rumors have floated around that Walgreens was going to be acquired by private equity (PE) firm Sycamore Partners. And while analysts told Healthcare Brew at the time that it was unlikely to happen, the tides appear to have turned in the PE company’s favor. On March 6, Walgreens Boots Alliance announced in a press release that it had signed a definitive purchase agreement with Sycamore for up to $23.7 billion. However, when Walgreens’s debts and assets to be potentially divested are taken out, the total sale price is actually closer to around $10 billion, per the ll Street Journal, turning the retailer into a private entity after nearly a century as a public company.

How hospital merger oversight is shifting deal-making Modern Healthcare; by Alex Kacik; 3/12/25 Health systems are increasingly pursuing mergers and acquisitions in the South, a region where demand for care is growing and there are fewer regulatory barriers. More than a dozen states have passed laws over the past several years designed to increase oversight of healthcare transactions, but Southern states have largely stayed on the sidelines. As a result, deals involving hospitals are expected to pick up in the South, particularly in markets that feature growing populations, a high number of Medicaid patients and less stringent merger reviews, merger and acquisition advisers said. Potential Medicaid cuts could also drive up deal-making in the 16-state region spanning from West Virginia to Texas, as well as Washington, D.C., advisers said. 

13 hospital transactions in 1 week Becker's Hospital Review; by Madeline Ashley; 3/4/25 The end of February into early March saw a wave of hospital transactions, signaling a shift in healthcare ownership and operations across the country. Below are the 13 hospital transactions that Becker's has reported on since Feb. 27:

Uplift Hospice acquires Star of Texas Hospice News; by Jim Parker; 3/5/25Uplift Hospice has acquired Star of Texas Hospice. Financial terms were undisclosed. The transaction will bring Uplift’s average daily census up to 450 across three states — Arizona, Nevada and Texas. The two organizations first connected to discuss a potential transaction through a mutual relationship with the M&A advisory firm Agenda Health, according to Uplift Hospice’s CEO Owen Lawrie.

The Pennant Group to ramp up hospice, home health transactions during 2025 Hospice News; by Jim Parker; 2/28/25 The Pennant Group (Nasdaq: PNTG) plans to ramp up acquisitions later this year as it works to integrate assets purchased in late 2024. Among those deals was The Pennant Group’s acquisition of Signature Healthcare at Home’s hospice and home health assets for a price tag of $80 million which closed in January. The company also completed some senior living transactions. Pennant is on the hunt for more deals but will likely be more active later in the year. 

Shareholder payouts among large publicly traded health care companiesJAMA Internal Medicine; Victor Roy, MD, PhD; Victor Amana, MPH; Joseph S. Ross, MD, MHS; Cary P. Gross, MD; 2/25There is growing concern that a large proportion of US health care spending appears to be directed to corporate shareholders rather than enhancing affordable access, improving quality of care, or advancing research and development. Total shareholder payouts from S&P 500 health care companies have more than tripled in the past 20 years. Payouts were concentrated among a small number of companies, with the pharmaceutical, biotechnology, managed care, and health care equipment and supplies subindustries distributing the largest amounts. Given greater health care affordability challenges for US households and the major role of federal and state governments in financing the health care sector, shareholder payouts have critical implications for stakeholders, especially patients. Increasing capital distributions to shareholders of publicly traded companies may be associated with higher prices and may not be reinvested in improving access, delivery, or research and development.

UnitedHealth Group's year of DOJ probes, layoffs and backlash Modern Healthcare; by Lauren Berryman; 2/24/25 UnitedHealth Group has faced an unprecedented past year, navigating events that have tested its finances, operations and reputation. Here is a timeline of key events during the company’s past 12 months. [Click here and scroll down to the timeline with links to Modern Healthcare's articles through the year.]

Judge sets trial date for DOJ’s challenge to UnitedHealth takeover of Amedisys McKnights Home Care; by Adam Healy; 2/20/25 A judge reportedly has set a date for the Department of Justice’s challenge of UnitedHealth Group’s (UHG’s) acquisition of home health and hospice provider Amedisys. US District Judge James K. Bredar set the trial for Oct. 27. However, the trial may have to be rescheduled to Feb. 9, 2026, Bredar said in an order, according to MLex, which provides news and analysis on legal developments.

What's keeping CFOs up at night? Becker's Hospital CFO Report; by Alan Condon; 2/14/25 As health system CFOs chart their course for 2025, they face an increasingly complex financial landscape marked by mounting labor costs, tightening margins, shifting payer dynamics and an evolving regulatory environment. ... [Several] CFOs recently joined the “Becker's CFO and Revenue Cycle Podcast” to discuss the trends they're watching most closely — and the strategies they're deploying to stay ahead. [Key items include the following: labor shortages (key theme); major investments in ambulatory care facilities; AI to support operations and service; physician partnerships; shift from fee for service to value-based care; clinical labor; malpractice litigation; growth of Medicare Advantage programs; staffing shortages; inflation; reimbursements; providing care to undersinsured patients; Medicaid supplemental funding programs; "disruptors' by private equity and "other nontraditional players"; uncertainty of federal and state regulation changes.]

Hospice leaders applaud CMS’s decision to reevaluate Special Focus Program, call for meaningful reforms National Alliance for Care at Home, Washington, DC and Alexandria, VA; Press Release; 2/14/25 Effective February 14, 2025, the Centers for Medicare & Medicaid Services (CMS) has ceased the implementation of the Hospice Special Focus Program (SFP) so that CMS may further evaluate the program. This decision is a positive move acknowledging that the current approach is not working as intended. The hospice community has long advocated for strong oversight and patient protections, but the SFP, as implemented, was deeply flawed, unlawful, and harmful to the very patients it was meant to protect. A multi-state coalition of hospices and hospice associations took legal action in January to challenge the program, citing its misrepresentation of hospice compliance records, misleading data, and jeopardized access to high-quality end-of-life care. The flawed algorithm behind the SFP failed to distinguish fraudulent providers from reputable ones, disproportionately penalized well-established hospices, and ignored repeated warnings from congressional leaders and industry stakeholders. ... Now that CMS is reassessing its approach, there is an opportunity to ensure that oversight efforts truly enhance patient protections without restricting access to trusted hospice providers. The National Alliance for Care at Home (the Alliance) and the National Partnership for Healthcare and Hospice Innovation (NPHI) remain committed to protecting access to high-quality hospice care and ensuring that regulatory oversight is fair, transparent, and aligned with congressional intent. ... [Click on the title's link to continue reading.] 

How the DOJ-UnitedHealth Group lawsuit could change hospice M&A Hospice News; by Jim Parker; 2/11/25 A U.S. Justice Department (DOJ) victory in its lawsuit to block UnitedHealth Group’s (NYSE: UNH) acquisition of Amedisys is unlikely to have a cooling effect on hospice M&A, according to some experts. The UnitedHealth Group subsidiary Optum in June 2023 agreed to acquire Amedisys in a $3.3 billion deal. Optum in February 2023 also acquired the home health and hospice provider LHC Group for $5.4 billion. DOJ in December 2024 filed the lawsuit to kill the deal. The state attorneys general of Maryland, Illinois, New Jersey, and New York are also plaintiffs in the suit. ... DOJ’s chief concern is that the combination of the two companies would dampen competition in the hospice and home health space. Should the transaction proceed, Optum would control 30% or more of the home health or hospice services in eight states, according to the Justice Department’s complaint.