Literature Review

Hospice group pushes for clarity in N.Y. state budget as some warm to for-profit care Spectrum News 1; by Susan Arbetter; 3/19/24 New York state has the lowest utilization of hospice in the country, which can be attributed to several factors, including low health literacy rates. But the state’s recent progress in support of end-of-life care may be threatened by something even more insidious: corporate greed. To investigate that issue nationally, a joint request for information was issued by the federal Department of Health and Human Services and the Federal Trade Commission into private equity-backed health care and its impact on quality. Yet despite dire warnings, New York state is slowly opening the door to for-profit, private equity-backed hospice care. 

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.

Private equity-backed consolidation divides physicians Modern Healthcare, by Alex Kacik; 3/18/24 ... Fewer physicians — only 46.7% in 2022 compared with 60.1% in 2012 — work in practices wholly owned by doctors amid struggles to manage reimbursement cuts, regulation and rising expenses. As a result, more physicians are joining health systems, private equity-backed management services organizations and insurers. That trend has spurred research, lobbying groups, regulation and legislation on physician employment models. 

Should the DOJ break up UnitedHealth Group? MedCity News, by Marissa Plescia; 3/17/24 The U.S. Department of Justice has reportedly recently launched an antitrust investigation of UnitedHealth Group, which begs the question of whether the healthcare giant should be broken up. Experts have varying opinions.

VITAS CEO Westfall: Market conditions more favorable for hospice acquisitions Hospice News, by Jim Parker; 3/15/24  Changes in the marketplace have made further acquisitions by VITAS Healthcare more likely. VITAS, a subsidiary of Chemed Corp. ..., recently announced its first deal in several years, the $85 million purchase of hospice assets from Covenant Health. While the company does not comment on its specific acquisition plans or its pipeline, VITAS may be more active in the M&A space in the coming year, CEO Nick Westfall indicated ...

Chemed's Vitas Healthcare plans $85M acquisition to expand Florida footprint

Why Northwell wants to buy Nuvance Modern Healthcare, by Caroline Hudson; 3/6/24 The deal would create a system with 28 hospitals and more than 1,000 care sites across New York and Connecticut.Editor's Note: Access to this article requires a subscription.

Aspirus Health completes St. Luke's Duluth acquisitionModern Healthcare, by Alex Kacik; 3/1/24Aspirus Health finalized its acquisition of St. Luke's Duluth, forming a 19-hospital system spanning northeastern Minnesota, northern and central Wisconsin and Michigan’s Upper Peninsula. ... As part of the transaction, Aspirus will invest at least $300 million over eight years in St. Luke’s and will expand its health plan to St. Luke’s service area within two years. In addition, Aspirus will honor all physician, labor and union contracts, the system said in a news release Friday. Editor's Note: Both Aspirus Health and St. Luke's Duluth provide hospice care.

Frontpoint Health acquires High Plains Senior Care, expanding Texas footprint and Medicare Advantage partnerships BNN, by Salman Akhtar; 2/29/24 Frontpoint Health, a leader in Home Health and Hospice services, has officially acquired High Plains Senior Care Group (HPSC), marking a significant expansion into over 176 counties across Texas. This strategic move not only broadens Frontpoint's geographical reach but also strengthens its collaborations with Medicare Advantage plans in the Southeast, promising accelerated growth and enhanced care for Medicare Advantage patients.

(Private Equity Issue) Anesthesiology group must cut ties with 5 hospitals: Colorado AGBecker's Hospital Review, by Alan Condon; 2/27/24Colorado Attorney General Phil Weiser has announced an agreement with U.S. Anesthesia Partners that resolves the private equity-backed company's alleged anticompetitive business practices that drove up prices for consumers receiving surgical anesthesia services.Publisher's note: Private equity concerns have impacted hospices the past few years. Private equity concerns in other fields are also catching our attention.

Legislation aims to increase scrutiny of private equity healthcare acquisitionsMcKnights Senior Living, by Lois A. Bowers; 2/27/24Legislation introduced ... in [California] would give the attorney general oversight of private equity and hedge fund acquisitions of long-term care and other healthcare facilities. Backers of AB 3129 say that it would “safeguard fair competition and root out anticompetitive practices by dominant corporations” as well as “ensure that the acquisitions are in the public interest.” Under the bill, the AG could grant, deny or impose conditions to a change of control or acquisition between a private equity group or hedge fund and a long-term care or other healthcare facility.

Top home health & hospice investors of 2023Levin Associates; 2/20/24The most active Home Health & Hospice investor during 2023 was The Pennant Group, which completed the year with five deal announcements across the home hospice, home health and multi-service specialties. The company made acquisitions in Arizona, Idaho, Oklahoma, Texas and Colorado. [Click on the title's link for more investors and extensive details.]

Gabelli & Co Investment Advisers Inc. grows position in Amedisys, Inc.MarketBeat; 2/5/24Gabelli & Co Investment Advisers Inc. lifted its holdings in shares of Amedisys, Inc. ... by 405.3% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 162,973 shares of the health services provider's stock after buying an additional 130,723 shares during the period. Amedisys makes up 2.5% of Gabelli & Co Investment Advisers Inc.'s portfolio, making the stock its 12th biggest position. Gabelli & Co Investment Advisers Inc. owned about 0.50% of Amedisys worth $15,222,000 as of its most recent SEC filing.