Literature Review

Facing the future: Home health providers gear up for 2024’s value-based care, M&A landscapesHome Health Care, by Andrew Donlan; 2/1/24Home-based care providers have faced many headwinds over the past few years. They’ll continue to do so in 2024. But uncertainty has also plagued providers, and there may be less of that this year. Providers know the threat of fee-for-service Medicare cuts. They know Medicare Advantage (MA) penetration is an unstoppable force. They know staffing woes will be a mainstay, even if the labor market nominally improves.

StateServ announces acquisition of Delta Care RxPR Newswire; 1/22/2024StateServ, a leading provider of durable medical equipment ("DME") benefit management solutions to the post-acute care market in the United States, has completed its acquisition of Delta Care Rx ("Delta Care"), a national pharmaceutical care provider. Delta Care offers integrated pharmacy benefit management, mail order prescription, sterile/non-sterile compounding, and clinical pharmacist consulting to the hospice and palliative care markets. ... The unique combination forms a leading care-at-home data, technology, and service platform and the industry's first scaled DME and pharmacy solution.

Report adds to scrutiny of private equity-owned hospitalsModern Healthcare, by Mari Devereaux; 1/16/24Lifepoint Health and ScionHealth's ownership by Apollo Global Management is the focus of a report by a nonprofit formed to hold private equity buyers accountable for the impact their acquisitions have on services and communities.

PE firms adapting hospice 'roll-up' strategies Hospice News, by Jim Parker; 1/8/24Private equity firms in the hospice space are adapting their “roll-up” strategies as economic uncertainties persist. Roll ups are a common approach to private equity investment. This occurs when a firm buys a larger platform company and then gradually acquires smaller organizations to foster growth.

To affiliate or acquire: Trends in nonprofit hospice consolidationHospice News, by Jim Parker; 1/5/24Recent years have seen an uptick in consolidation activity among nonprofits in the hospice space. Increasingly, nonprofit s are pursuing acquisitions and affiliations, as well as forming regional collaboratives. To achieve these kinds of growth, hospices must consider whether they should affiliate or buy another company outright. Each approach comes with benefits and risks.

St. Luke's merger will be 'the first of many' M&A deals in the hospital sector this yearMedCity News, by Katie Adams, 1/4/24On New Year’s Day, two Missouri health systems — St. Louis-based BJC HealthCare and Kansas City-based St. Luke’s Health System — officially completed their merger. The deal, which was first announced last May, combines the two organizations into one integrated academic health system. The merger was one of the biggest hospital M&A deals announced last year. The combined health system comprises 28 hospitals and hundreds of clinics serving 6 million people across Missouri, Illinois and Kansas. It is expected to generate $10 billion in annual revenue.

West Monroe’s 3 healthcare outlooks for 2024: AI, cost pressures, dealmakingMedCityNews, by Marissa Plescia; 12/29/23 In a recent report, consulting firm West Monroe laid out three trends for the healthcare industry to watch out for:

Serious Medical Errors Rose After Private Equity Firms Bought HospitalsNew York TimesDecember 26, 2023The rate of serious medical complications increased in hospitals after they were purchased by private equity investment firms, according to a major study of the effects of such acquisitions on patient care in recent years. The study, published in JAMA on Tuesday, found that, in the three years after a private equity fund bought a hospital, adverse events including surgical infections and bed sores rose by 25 percent among Medicare patients when compared with similar hospitals that were not bought by such investors. The researchers reported a nearly 38 percent increase in central line infections, a dangerous kind of infection that medical authorities say should never happen, and a 27 percent increase in falls by patients while staying in the hospital. 

Hospital merger activity to increase in 2024Modern HealthcareDecember 26, 2023Hospital merger and acquisition activity is expected to increase next year as hospitals manage financial pressure, competitors combine and insurers grow. ... The number of announced hospital deals through the third quarter rose by more than 50%, to 53 proposed transactions from 35 last year, according to data from consultancy Kaufman Hall. Deal activity was particularly pronounced among midsized health systems ranging from $1 billion to $5 billion in annual revenue. ... Nearly 40% of the 18 proposed hospital deals announced in the third quarter were driven by financial distress, according to Kaufman Hall. 

Froedtert, ThedaCare to launch combined system Jan. 1Becker’s Hospital ReviewDecember 19, 2023Milwaukee-based Froedtert and Neenah, Wis.-based ThedaCare have finalized their merger agreement and will launch as a combined 18-hospital system Jan. 1.

Brandywine Living acquired by Retirement Unlimited Inc.McKnight’s Senior LivingDecember 20, 2023Mt. Laurel, NJ-based Brandywine Living’s senior living management platform is being acquired by Roanoke, VA-based Retirement Unlimited Inc., RUI announced Wednesday. Following the transaction, the combined company will consist of 59 communities with more than 6,739 independent living, assisted living and memory care units. 

ProPublica Adds Ownership Information to Our Nursing Home DatabasePro PublicaDecember 20, 2023The quality of care that residents receive in a nursing home can be profoundly affected by who owns it, studies have shown. It’s not always clear who should be held accountable, though: Many nursing homes are owned by companies that are owned by other companies, obscuring who has the ultimate decision-making power. ... To help navigate the confusing world of nursing home ownership, ProPublica’s Nursing Home Inspect now publishes detailed ownership information for facilities and an upgraded search to help you sift through the information.