Literature Review

Care Synergy and RCC Medical Equipment announce plans to form healthcare joint venture Economy Press Releases, Denver, CO; by Tim Bowen; by 12/19/24 Care Synergy and RCC Medical Equipment Co. have agreed to form a joint-venture partnership to provide enhanced healthcare services throughout the Colorado Front Range region. Together, Care Synergy, a leading healthcare management service organization, and RCC Medical Equipment Co. will provide high-quality healthcare equipment to the patient populations of Care Synergy’s healthcare affiliates including The Denver Hospice, Colorado PACE, Pathways Hospice, Pikes Peak Hospice & Palliative Care, and Colorado Visiting Nurse Association (CVNA). “The partnership between Care Synergy and RCC Medical Equipment is important to the advancement of hospice care, palliative care, and home health in Colorado,” stated Tim Bowen, president and CEO of Care Synergy. ... In early 2025, the partnership will initially focus on caring for the Weld County and Larimer County patient populations served by Pathways Hospice. However, the plan is to expand service to the Denver metropolitan area and Colorado Springs in late 2025 and 2026.

Joining forces: 2024’s hospice investment, consolidation trendsHospice News; by Holly Vossel; 12/18/24 Hospice investment trends took myriad routes this year, seeing a few common threads occurring among nonprofit and for-profit entities that hint at where the market may be heading. The scope of hospice deals in 2024 encompassed joint ventures and collaborative affiliations in addition to acquisitions. Some of these transactions were fueled by value-based reimbursement and unmet needs among underserved patients. Rising demand, workforce growth and organizational culture are three significant pieces driving much of the recent hospice merger and acquisition (M&A) activity, according to Andrew Molosky, president and CEO of Chapters Health System, a large Florida-based nonprofit hospice provider. 

Oregon will review Providence's handoff of hospice, home health to private equity-backed firm The Lund Report; by Nick Budnick; 12/17/24Providence Health’s plan to hand over hospice and home health services affecting thousands of patients to private equity-backed Compassus Health will undergo state review following questions raised by the Oregon Nurses Association, workers and members of the public. ... Now, after the Oregon Nurses Association sent a letter to the health authority’s director, Sejal Hathi, and members of the public weighed in with public comment, the Oregon Health Authority has decided to review the joint venture to see if it will hurt costs of care, access or employment and working conditions. The health authority’s decision to wade in on the latest deal is significant because the merger affects thousands of patients across multiple states, and yet Oregon has stronger legal authority than most states to stop it. The decision by the health authority represents the highest-profile known instance in which the agency has stepped in to require companies to formally apply for approval after they’d previously opted not to. 

Why private equity healthcare investment may rise in 2025 Modern Healthcare - Mergers & Acquisitions; by Alex Kacik; 12/12/24 Private equity investment in healthcare is expected to pick up in 2025 but still fall short of the highs of 2021, merger and acquisition advisers said. Private equity-linked healthcare transaction volume is poised to rebound after a sluggish 2024 as interest rates cool, state-led oversight bills lose momentum and a new presidential administration begins. Corporate investors will likely prioritize deals that involve healthcare information technology and other administrative support services over physician practices, industry observers said. 

University of Michigan Health-Sparrow nurses authorize strike as contract negotiations continue CBS News, Detroit, MI; by Elle Meyers; 12/12/24 Union officials representing the University of Michigan Health-Sparrow nursing staff have been working for months for an improved contract, but leaders say they're not close to a deal. "The hospital so far is not making offers that are going to keep up competitive. It's not going to allow us to make sure we maintain our level of care or quality of care," said Jeff Breslin, a registered nurse and the president of the Professional Employees Council of Sparrow Hospital. The University of Michigan bought Sparrow last April. Bresil says he was hopeful for positive change. "They had promised to come in and build new facilities, improve other facilities that we have, which is great, but you've got to take care of the people as well, and frankly, I'm disappointed that this is the direction things are taking," he said. Breslin said contract negotiations between the nurse's union and the hospital began last August. Their contract expired in October, and they still haven't reached a deal. He says nurses want to see more competitive pay, better staffing levels and an improved health plan. 

New Day Healthcare acquires Good Samaritan Society’s hospice operations Hospice News; by Holly Vossel; 12/11/24 Texas-based New Day Healthcare LLC has announced its acquisition of Good Samaritan Society’s hospice operations in its home state. The financial terms of the deal were undisclosed. The transaction includes Good Samaritan’s hospice assets in El Paso, Texas, expanding New Day’s existing presence in that market. The deal marks an important strategic move as New Day Healthcare ramps up M&A activity in the near future, according to CEO and Founder G. Scott Herman.

CareTrust REIT expands in the Midwest with $97M deal Modern Healthcare; by Diane Eastabrook; 12/10/24 CareTrust REIT has acquired a 46-facility skilled nursing and senior housing portfolio in the Midwest for $97 million. The San Clemente, California-based real estate investment trust said in a Monday news release the facilities include more than 3,800 beds and were purchased through a bankruptcy sale of the assets from an unnamed debtor. It did not disclose the names or specific locations of the facilities.

Why repeat offender nursing homes elude accountability Modern Healthcare; by Diane Eastabrook and Tim Broderick; 12/10/24 Fallbrook Rehabilitation and Care Center stands out as one of the worst among the more than 1,200 nursing homes in Texas and the nearly 15,000 facilities nationwide. Over a three-year period at the skilled nursing facility in Houston, one patient died after staff did not notice her ventilator had disconnected.  ... The Texas Department of Health and Human Services cited Fallbrook for more than 50 other health and safety violations. Fallbrook was fined about $640,000 between April 2021 and July 2023, according to Modern Healthcare analysis of April 2024 CMS data. The amount was among the top 30 fines paid by nursing homes nationally and was more than six times the average fine other Texas nursing homes with CMS one-star ratings were assessed during that period. Yet the 200-bed nursing home collected more than $20 million in reimbursements from Medicare, Medicaid and health insurance companies in 2021 and 2022, ... The ownership groups can control facilities through convoluted webs of individuals, private equity investors, limited liability companies, real estate investment trusts and other trusts that often transfer money to related companies or third parties with ownership interests in the nursing homes. The Human and Human Services Department Office of Inspector General has identified this as a problem.

Kaiser's Risant Health to become $35B system in 5 years: 14 things to know Becker's Hospital CFO Report; by Alan Condon; 12/5/24 Risant Health, a nonprofit formed by Oakland, Calif.-based Kaiser Permanente, has acquired two health systems in the last 10 months and plans to acquire three to four more systems over the next five years to grow into a company with $30 billion to $35 billion in annual revenue. Fourteen things to know: [Click on the title's link to continue reading.]

Forcura and Axxess announce palliative care software integration Bluefield Daily Telegraph, Jacksonville, FL; Business Wire; 12/9/24 Forcura, a healthcare workflow management company, announced a strategic partnership enhancement with Axxess, the leading global technology platform for healthcare at home, by expanding connectivity to Axxess’ palliative care platform. Consequently, Axxess’ palliative care client organizations now can manage the workflow associated with onboarding and coordinating care for patients through a bi-directional API integration with Forcura. Together, Forcura and Axxess can provide shared home health, hospice, home care and palliative care clients a seamless interoperable experience.

VitalCaring’s PE backers considering appeal of Encompass, Enhabit lawsuit Hospice News; by Jim Parker; 12/6/24 Nautic Partners and The Vistria Group, the private equity backers of home health and hospice provider Vital Caring, are mulling a potential appeal of a federal court’s recent decision in a dispute with Encompass Health (NYSE: EHC) and Enhabit Inc. (NYSE: EHAB). A federal judge in Delaware on Monday ordered VitalCaring, Nautic and Vistria to share 43% of future profits Encompass Health and Enhabit Inc. The two companies allege that the founders of VitalCaring, including CEO April Anthony, used unethical practices to get the company off the ground, adversely affecting the two plaintiffs. Anthony previously served as CEO of Encompass Health’s home health and hospice segment. The two private equity firms, co-defendants in the lawsuit, are now considering their legal options.

Residential Hospice brings hospice care to eastern Kansas and western Missouri PR Newswire, Kansas City, MO; by Residential Home Health and Hospice; 12/4/24 Tutera Senior Living & Health Care (Tutera) and Residential Home Health and Hospice (Residential) have expanded their partnership and service offering, Residential Hospice is now acting as the preferred provider of hospice services. Tutera and Residential have been in a partnership since May 2022 with Residential providing home health care in their Kansas City market. "The focus of our partnership with Residential is to support patients at every stage of care in the communities we serve," said Randy Bloom, President/COO Tutera Health Care Division. "By expanding the partnership with Residential, we increase access to care and are better able to meet the healthcare needs of our community."

Delaware Court of Chancery awards damages and other relief to Encompass Health and Enhabit for misconduct by April Anthony, other former officers, and private equity firms Vistria Group and Nautic Partners Associated Press (AP) - Business Wire, Birmingham, AL and Dallas, TX; 12/4/24 On Monday, Encompass Health and Enhabit won their lawsuit in the Delaware Court of Chancery related to breaches of fiduciary duty by April Anthony, Luke James, and Chris Walker while they served as the senior officers at Encompass Health’s former home health and hospice division, which is now Enhabit. The Court awarded judgment against private equity firms Vistria Group and Nautic Partners and the home health and hospice business now known as VitalCaring Group for aiding and abetting “the egregious breaches of the duty of loyalty” by Anthony, James, and Walker. The case was the subject of a 7-day trial in December 2023. After considering “the damning record presented at trial,” the Court found that, while employed by Encompass Health, Anthony, James, and Walker usurped acquisition opportunities falling within Encompass Health’s line of business, used Encompass Health’s confidential information, and swayed key Encompass Health employees to join them with the promise of equity in the home health and hospice competitor that Anthony now heads.