Literature Review

Ascension selling spree continues Becker's Hospital CFO Report; by Alan Condon; updated 6/25/24 St. Louis-based Ascension continues to improve its operating performance and aims to ensure long-term sustainability for the health system on the back of a $3 billion operating loss in fiscal year 2023. ... Part of Ascension's turnaround strategy has also revolved around strategic transactions that reorganized its portfolio. The 139-hospital system has offloaded several key assets and hospitals in the last three years, with more deals in the pipeline.  Nine transactions to know: [Click on the title's link for details.]

Risant Health plans to acquire North Carolina system Becker's Hospital Review; by Alan Condon; 6/24/24 Risant Health, a nonprofit formed under Oakland, Calif.-based Kaiser Permanente, has signed a definitive agreement to acquire Greensboro, N.C.-based Cone Health. The news comes less than three months after Risant acquired its first health system, Danville, Pa.-based Geisinger Health. If the transaction closes, Cone Health will operate independently as a regional and community-based health system under Risant, which supports organizations with technology and services to improve outcomes and lower care costs in diverse business models. 

Private equity investment in assisted living: Distinct impacts and policy considerationsHealth Affairs; by Kali S. Thomas, John R. Bowblis, Paula Carder, Cassandra Hua, Sean Shenghsiu Huang, Yashaswini Singh, Lindsey Smith, Momotazur Rahman; 6/18/24Numerous academic publications, newspaper articles, and government reports have addressed private equity (PE) investment in health care entities, including nursing homes, hospitals, and physician practices. Proponents argue PE investment brings much-needed financial capital, allowing health care providers to renovate aging facilities, invest in the latest technology, spur innovation, and enhance operational efficiency. However, there are also concerns that PE investment has been associated with higher prices, lower quality, and inadequate staffing levels. Such changes could lead to patient harm, even death. ... However, one significant and continually expanding sector—assisted living—has several distinct features that, compared to other health care entities, may lead to different outcomes from PE investments. Assisted living is paid for differently. In relation to PE investments, the arrangement of assets and operations in assisted living are different from other health care sectors. This distinction creates unique and more nuanced incentives. Crucially, there’s actually no evidence to date on the effect of PE investment on the welfare of the people who reside and work in assisted living communities.

How health equity impacts hospices’ bottom lines Hospice News; by Holly Vossel; 6/18/24More hospices nationwide have increasingly recognized the value proposition of expanding their reach into untapped and underserved populations and geographic markets. Aside from increased access, census volumes and quality, health equity’s return on investment can also include a better recruitment and retention outlook, according to David Turner, vice president of special projects and initiatives at St. Croix Hospice, which serves 10 Midwest states. Turner is also CEO and partner of Nashville-based Heart’n Soul Hospice. Hospices stand to benefit from recruiting and retaining a more ethnically diverse base of interdisciplinary workers and c-suite executives, Turner said at the Hospice News Elevate conference in Washington D.C.

Pennant and Hartford HealthCare partner to transform home care services CBS News 13, Eagle, Idaho; by Pennant Group, Inc.; 6/18/24 The Pennant Group, Inc., the parent company of the Pennant group of affiliated home health, hospice and senior living companies, announced today that it has entered into a management and consulting services agreement to provide operational support to Hartford HealthCare at Home (HHCAH), the home health and hospice business of Hartford HealthCare. Hartford HealthCare is the highest ranking in quality, comprehensive non-profit integrated health system in Connecticut, and HHCAH’s home-based care spans the state, with eight locations, more than 1,000 employees, and more than 33,000 home health admissions and approximately 4,000 hospice admissions over the trailing 12 months. Hartford HealthCare has provided home-based care for over a century, and this engagement of Pennant reflects its continued commitment to home-based care as an essential and growing part of the care continuum and a central component of Hartford HealthCare’s future. Hartford HealthCare at Home remains owned by Hartford HealthCare and is a critical part of Hartford HealthCare’s ecosystem of care.

Revenue pressures driving home care consolidation, private equity’s growing influence, provider group saysMcKnight's Home Care; by Adam Healy; 6/11/24Pressures such as insufficient government reimbursement and rising Medicare Advantage penetration are contributing to consolidation in home care and hospice, LeadingAge told regulators last week in response to a February request for information surrounding healthcare market competition. “Sustainable fee-for-service rates that cover the continually rising costs of delivering care are of critical importance,” LeadingAge said. “Outside revenue pressures such as lower reimbursement rates from managed care plans, reduced units of service through accountable and managed care organizations, and an increasing need to be an organization of a certain size in order to contract with managed care organizations and accountable care organizations are also factors that drive consideration of consolidation options.” One particular concern, LeadingAge noted, is the growing investment in healthcare by private equity firms. Private equity firms have driven a significant share of home care and hospice consolidation in recent years. PE firms had a hand in 35 home health deals, 15 personal care deals and 13 hospice deals last year, according to a recent report. And studies have shown that patients receiving care from PE-owned providers may experience worse health outcomes than patients at nonprofit agencies.

Alive welcomes experienced hospice leader as new CEO: Middle Tennessee's only nonprofit hospice provider poised to build on industry-leading reputationAlive Hospice; 6/13/24Alive, Middle Tennessee’s only nonprofit provider of hospice and palliative care and end-of-life services, today announced Kerry Hamilton as the organization’s new president and chief executive officer. He will begin his new role on June 24. A highly accomplished health care leader, Hamilton joins Alive with more than 20 years of direct hospice management experience, including a decade as CEO of nonprofit Hospice of Central Ohio. ... Hamilton’s hiring comes one year after news broke that Alive was considering a sale to a for-profit entity. The news led to a tremendous outpouring of support from the community for Alive to remain nonprofit. Ultimately, the Board of Directors made the decision that Alive would remain an independent nonprofit organization. The Board then began the search for a new CEO who shared its vision for the future.

Northrim Horizon completes acquisition of Noble HospiceInvestors Observer; PR Newswire; 6/11/24Northrim Horizon L.P. ("Northrim"), an Arizona -based permanent capital investment firm, today announced its acquisition of Noble Hospice and Palliative Care ("Noble" or the "Company"), a leading provider of hospice services in Arizona. Noble becomes Northrim's fourth acquisition in its broader platform offering a full spectrum of essential home care and hospice services across Arizona.  

Compassus announces new partnership for home care and hospice.InvestorsObserver; by PR Newswire; 6/10/24Compassus , a leading national provider of integrated home-based health care services, announced today they have formed a partnership with Columbus, Ohio -based OhioHealth for home health and hospice services. "We're proud to collaborate with OhioHealth to deliver high-quality, patient-centered home health and hospice care to ensure patients and families have the support they need wherever they call home," said Compassus CEO Mike Asselta . "As our teams come together, we'll continue to focus on patients, partnership and innovation to deliver superior care." The company's nearly 7,000 team members serve more than 120,000 patients annually across more than 270 touchpoints across 30 states.

New partnership aims to expand hospice services in EUP [Michigan]The Sault News; by Brendan Wiesner; 6/7/24 A new partnership between local and state organizations will help support hospice services for the Sault community. Several months ago, the Chippewa County Health Department decided to close its home health and hospice division. The division committed to providing hospice services until the end of 2024 or until a new program was made available for the community. The closing of the division did not affect the hospice services at the Hospice of the EUP, but it would have limited access to hospice services that are set up in people's homes. The division also provided some support to Hospice of the EUP through clinical support.Editor's Note: We posted a related article on 6/7/24, "Collaboration looks to fill void left by closure of Hiland Cottage Hospice." However, that article highlighted "Hiland Cottage Hospice" while this one focuses on "Hospice of the EUP."

Dover Health acquires Chicago-area hospice, home health agencies Hospice News; by Jim Parker; 6/6/24St. Louis-based Dover Health has expanded into the Chicago region with the purchase of Centered Care Hospice and Palliative Care and Cornerstone Home Health. With this deal, Dover expands to nine Illinois counties to complement its five-county footprint in Missouri. The transaction will enable Dover Health to expand its scale and offer enhanced benefits and technology to clinical staff and patients, according to a press release. “We are committed to giving our caregiving team the time and resources needed to truly engage with each patient,” said Steven Burghart, president of Dover Health, in a statement. “Our mission is to help every senior and their family thrive through personalized, holistic health and wellness.”

Pacs Group CEO calls for caution when dealing with private equityModern Healthcare; by Diane Eastabrook; 5/30/24Do you think private equity is becoming a problem for nursing homes? [Pacs Group Chair and CEO Jason Murray replies] I’m not saying that all private equity is inherently bad, but I do think that if providers are not careful about how the capital is aligned with their mission as a company, then you can get into some dangerous situations. As the company tries to perform, they might not be at the level where the capital partner would like them to be, so the business plan changes. Whenever that business plan changes from patient care to a return on capital, it’s a losing scenario.