Literature Review

Amedisys halts sale of home health, hospice locations to VitalCaring Hospice News; by Holly Vossel; 1/7/25 Amedisys’ (Nasdaq: AMED) has halted the divestiture of some of its home health and hospice locations to Texas-based VitalCaring. Amedisys in June announced an agreement to sell some of its locations to the private equity-backed home health and hospice provider VitalCaring. ... The news to cancel the divestiture comes after a recent court order issued by a federal judge in Delaware requiring that VitalCaring allocate 43% of future profits to Encompass Health (NYSE: EHC) and Enhabit Inc. (NYSE: EHAB). [Click on the title's link to continue reading.]

Masonicare completes merger with UMH, facility acquisition McKnights Senior Living; by Kathleen Steele Gaivin; 1/6/25 Wallingford, CT-based Masonicare has completed its planned merger with United Methodist Homes, the companies said Thursday in a joint statement. Masonicare Corp. is Connecticut’s largest not-for-profit senior living and care organization, offering independent living, assisted living, memory care and skilled nursing as well as short-term rehabilitation, respite care and hospice care. UMH, a 150-year-old organization, has five locations in the Nutmeg State. The communities provide independent living, assisted living, memory care, skilled nursing and short-term rehab. The merger moves UMH under the Masonicare brand and extends to UMH access to Masonicare’s comprehensive continuum of care, the companies said.  Also on Jan. 2, Masonicare announced the acquisition of Atria Greenridge Place in Rocky Hill, CT, rebranding the assisted living and memory community to Masonicare at Greenridge Place.

Top hospice trends to watch in 2025 Hospice News; by Jim Parker; 1/3/25 Hospice leaders will need to keep their eyes on five key trends in the new year when it comes to compliance, business operations and finance. Coupled with these trends is rising utilization. Hospice utilization reached 51.7% among Medicare decedents in 2023, up more than two percentage points from the prior year, according to recent data from the Medicare Payment Advisory Commission (MedPAC). This is the highest rate since 2019. ... The number of hospice care days also saw increases, as did average length of stay and average number of patient visits per week. Total Medicare hospice payments in 2023 reached $25.7 billion. ...

The Pennant Group Closes $80M Signature acquisition Hospice News; by Jim Parker; 1/3/25 The Pennant Group Inc. (Nasdaq: PNTG) completed its $80 million acquisition of Signature Healthcare at Home’s hospice and home health assets. Pennant closed the deal on seven of Signature’s Oregon locations on Jan. 1. The company previously completed the purchase of Signature’s Idaho and Washington assets on August 1, 2024. Acquiring Signature will boost Pennant’s existing presence across three states. The purchase adds seven locations to the company’s footprint in Oregon, as well as multiple locations in four Washington cities and two cities in southwest Idaho. 

How private investment is becoming a driving force behind PACE Modern Helathcare; by Diane Eastabrook; 12/23/24 2025 could be the year a 50-year-old program that keeps older adults out of nursing facilities goes mainstream as for-profit companies innovate and launch more programs. Habitat Health, Seen Health, One Senior Care and InnovAge are planning to expand Programs of All-Inclusive Care for the Elderly from California to Ohio. These investor-backed organizations are scaling and innovating PACE at a time when more states are offering the Medicare-Medicaid program for frail older adults, and as legislation before Congress could make its services more widely available. Still, these for-profit programs face administrative hurdles and high start-up costs that have hamstrung PACE for decades.

Trends in private equity acquisition of pain management practicesJAMA Network Open; Geronimo Bejarano, MPH; James E. Eubanks, MD, MS; Robert T. Braun, PhD; 12/24Pain has the highest health care spending in the US and is expected to increase with the aging population, which may entice private equity acquisitions of pain management practices. Private equity has increasingly acquired physician practices and acquisitions are associated with higher spending, utilization of more expensive treatments, and increasing patient volume. In this cross-sectional study of private equity acquisitions of pain management practices, we found a rise in acquisitions over the last decade with almost 1 in 10 pain management physicians affiliated with a private equity–owned pain management practice. [The] ... high amount of consolidation within certain states poses concerns for private equity to have enough market power to control care delivery of several procedure-based specialties, including pain management. Policymakers and the Federal Trade Commission have taken notice of the harms of increases in both health care consolidation and private equity acquisitions, and there are ongoing efforts to curb their detrimental effects. 

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. 

ONA accuses Providence of trying to sidestep state regulators as it partners with private equity Oregon Nurses Association; by ONA; 12/12/24 The Oregon Nurses Association (ONA) sent a letter to the Oregon Health Authority asking them to intervene in the recently proposed joint venture between Providence Health and private equity-backed Compassus to manage Providence’s home health and hospice program. The full letter is included below. Providence announced the so-called joint venture in October but has failed to file the proper paperwork with Oregon’s Healthcare Market Oversight (HCMO) to allow state regulators time to review the sale. Concerns from patients and caregivers have already been raised about transparency, patient care, and the potential negative effects on health outcomes in Oregon’s vulnerable communities with this joint venture.

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.