Literature Review

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.

Publicly traded hospice companies poised for dealsHospice News; by Jim Parker; 5/24/24The nation’s publicly traded hospice companies are primed for more acquisitions after a 2023 slump, fueled by census and growth. Transaction volume declined in the hospice and home-based care space in 2023, following the two record-breaking prior years. [Examples include:]

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.

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.

Aveanna is looking to grow in its ‘rightsized’ home health segment again Home Health Care News; by Andrew Donlan; 5/14/24 Aveanna Healthcare Holdings leaders believe the company is back at a place where it can bank on near-term growth in its Medicare-certified home health business. It first entered into a business “transformation” in January 2023, and that transformation is already paying dividends, according to CEO Jeff Shaner. But much of the turnaround has been led by the private-duty services segment. Now, Shaner sees a path for the company to begin accelerating its home health and hospice lines.