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Enhabit to shutter handful of home health locations, ‘close’ to new deal with UnitedHealthcare Home Health Care News; by Andrew Donlan; 11/7/24 Enhabit Inc. (NYSE: EHAB) has a new CFO and a somewhat new strategy. It still faces a lot of the same problems. On Thursday, CEO Barb Jacobsmeyer said the company would be closing or consolidating certain locations that are underperforming, specifically when it comes to traditional Medicare business in home health care. While its payer innovation strategy is still intact, that’s largely a departure from its goal of moving more toward Medicare Advantage (MA) revenue over the last couple of years. Specifically, the company has been trying to diversify its revenue mix to become a better partner to referral sources and adjust to a more MA-dominated future. But now, after a strategic review and a battle with the activist investor AREX Capital, it seems to be re-focusing on fee-for-service revenue from traditional Medicare. ...

The Pennant Group to seek more hospice, home health deals in 2025 Hospice News; by Jim Parker; 11/7/24 The Pennant Group (Nasdaq: PNTG) has a “robust pipeline” of potential acquisitions in the wings for 2025 across its home health and hospice and senior living business segments. For prospective deals, Pennant scouts for agencies that show strong promise for organic growth that have “talented” local leaders or entrepreneurs in place, according to CEO Brent Guerisoli. Pennant then leverages the resources in its platform to foster growth. “Developing local leaders remains at the heart of our operating model,” Guerisoli said in a Q3 earnings call. “As the talent and experience operations and clusters deepens with strong portfolio companies, our efforts throughout our footprint, we are able to more quickly improve new acquisitions and grow seasoned operations, thus the significant investment we have made in our leadership and development programs is the catalyst for enduring momentum.” Pennant is the holding company for a cluster of independent hospice, home health and senior living providers located across 13 states. Year to date, the company has added more than 60 CEOs to its portfolio agencies as well as 40 internal clinical leaders.

Choice Health at Home announces new credit facilities and the strategic acquisition of Accentra Home Health and Hospice News Channel Nebraska Southeast; Press Release; 11/6/24 Choice Health at Home (“Choice”), a leading multi-state operator of home health, hospice, private duty, and rehabilitation services providing care throughout the Southwestern US, is proud to announce the company’s most recent acquisition and newly expanded credit facilities for the future growth of the organization. On the transaction front, Choice announced its acquisition of Accentra Home Health and Hospice (“Accentra”), a multi-agency home health and hospice organization in the state of Oklahoma. The merger of Accentra with Choice’s already significant existing Oklahoma home health and hospice agencies will dramatically strengthen the company’s presence in Oklahoma and provide the infrastructure for a long-term strategic plan to cover more than 90% of the state’s urban and rural geographies.

Elevance is latest to invest in home health with Carebridge acquisition HealthLeaders; by Jay Asser; 11/4/24 The home-based care business is seeing increased interest and could be ripe for more activity going forward. Key Takeaways: 

BrightSpring CEO: Home health, hospice acquisitions offer ‘high return on investment’ Home Health Care News; by Audrie Martin; 11/1/24 The newest home-based care face on the public market, BrightSpring Health Services (Nasdaq: BTSG), is making strides. The company announced a successful third quarter during its earnings call Friday. Leaders reported an overall increase in business and raised 2024 revenue and adjusted EBITDA guidance. Provider service segment revenue grew across service lines for the Louisville, Kentucky-based company. This was primarily attributed to billable hours growth and its Rehab in Motion program supporting Medicare Part B outpatient rehab patients. ... “From an acquisition strategy perspective, I think it’s going to be consistent with what we’ve done over the past couple of years,” he said. “On the provider side, it’s been rehab, home health and hospice, and then home-based primary care as well. We currently have three or four very small tuck-ins for home health and hospice, which are high returns on investment. On the de novo side, it’s really on home health, hospice and rehab.”

Mission Health Services acquires Angel’s Crossing Home Hospice Hospice News; by Jim Parker; 11/4/24 The long term care company Mission Health Services has acquired Utah-based Angel’s Crossing Home Hospice. Mission is a nonprofit provider of nursing home, assisted living, short term care, memory care and therapy services. The M&A advisory firm Agenda Health facilitated the transaction. Financial terms were undisclosed. The deal marks Mission’s first foray into the hospice space. “The sellers made the strategic decision to divest their business to pursue a new venture. Their goal was to reallocate their time, energy and resources towards founding a hospice in a different region of the country,” Stephen Walters, senior director for Agenda Health, told Hospice News in an email. 

CareTrust, JV partner to acquire 31 skilled nursing facilities in $500 million deal Skilled Nursing News; by Tim Mullaney; 10/29/24 CareTrust REIT (NYSE: CTRE) and a joint venture partner have reached an agreement to acquire a portfolio of 31 skilled nursing facilities for approximately $500 million, the company’s largest acquisition to date. San Clemente, California-based CareTrust anticipates that most of the facilities will be operated by existing partners of the REIT, including The Ensign Group (Nasdaq: ENSG), PACS Group (NYSE: PACS) and Links Healthcare Group, the company announced Tuesday. The portfolio being acquired totals 3,290 licensed beds, with 30 of the locations in Tennessee and one in Alabama. CareTrust anticipates that the deal will close in the fourth quarter of 2024. ... PACS will be adding 12 of the 31 properties to its ranks, all 12 are in Tennessee; PACS currently operates 276 post-acute care and senior living facilities across 15 states. This is a new state for the Utah-based operator. PACS may purchase the real estate on six of the facilities between years four and seven of the lease with CareTrust, PACS said in a statement.

Covenant Care deal a growth engine for Vitas Hospice News; by Jim Parker; 10/30/24 VITAS Healthcare’s acquisition of Covenant Health and Community Services hospice business has emerged as a growth engine for the company. In April, VITAS acquired Covenant’s hospice operations as well as one assisted living facility in an $85 million deal. The transaction brought VITAS into the Alabama market and expanded its geographic footprint in Florida and marked the company’s entry into the assisted living space. Covenant Health contributed close to $11 million to VITAS’ $391.4 million third quarter revenue, which is up 17.3% year over year. In addition to the acquisition, the company in Q3 saw an 15.5% increase in average daily census (ADC) reaching 21,785. Admissions also rose 6.3% to 16,775.

Cigna considers Humana acquisition – What it means for the stocks MarketBeat; by Jea Yu; 10/29/24 There has been speculation of a massive merger in the medical sector between two massive health insurers. Specifically, the rumor is The Cigna Group NYSE: CI is interested in acquiring Humana Inc. NYSE: HUM. The conjecture caused both stocks to react, as Cigna stock fell 10% as the rumored surfaced on Oct. 18, 2024, and Humana stock remained relatively flat. Based on the reactions, the market doesn't see this as a favorable merger, and for good reason. While there are many potential synergies in a merger, assuming it passes the regulatory antitrust sniff test (which is a big "if"), there is also a major sticking point that sinks any possibility of it coming to fruition called Medicare Advantage (MA). 

UnitedHealth Group, Amedisys to meet with Justice Department to push for acquisition’s closure Hospice News; by Jim Parker; 10/26/24 Executives from UnitedHealth Group and Amedisys reportedly will meet with U.S. Justice Department officials in an effort to seal their pending deal. Amedisys has indicated that it expects the deal to close in Q4. However, the Justice Department (DOJ) has been making inquiries into the transaction and reportedly has been considering a lawsuit to block it, due to potential antitrust concerns. To date, neither Amedisys nor UnitedHealth Group have been accused of any wrongdoing. Bloomberg first reported on the DOJ meeting, which might begin on Monday, according to sources “familiar with the matter.” The meeting will include Jonathan Kanter, assistant attorney general for the DOJ’s Antitrust Division, Bloomberg reported.

SSM Health at Home joins Wisconsin Hospice & Palliative Care Collaborative Hospice News; by Jim Parker; 10/22/24 The home health and hospice provider SSM Health at Home has joined the Wisconsin Hospice & Palliative Care Collaborative (WHPCC). SSM Health at Home is part of the SSM Health System. Headquartered in Missouri, the system also services patients in Illinois, Wisconsin and Oklahoma. WHPCC was incorporated as a 501c3 organization in 2021. The collaborative includes members Agrace, Rainbow Hospice Care, Unity Hospice, Adoray Home Health & Hospice, Hospice Alliance and Sharon S. Richardson Community Hospice. Their combined geographic footprint covers 80% of the state.

Healthcare trends & transactions Q3 2024 Bass, Berry & Sims; by Bass, Berry & Sims, PLC; 10/21/24 In the healthcare mergers and acquisitions (M&A) market, while deal volumes varied across different sectors, by and large the sure and steady pace of deal volume in Q2 continued into Q3. Moreover, several positive developments in Q3—namely, the Federal Reserve (finally) cutting interest rates, the courts striking down the Federal Trade Commission’s (FTC) national ban on non-competes, and California Governor Newsom’s vetoing Assembly Bill 3129—may serve as the catalysts needed to boost activity as we head into the final stretch of 2024.

Help at Home to acquire Helpmates, Inc. The Daily Herald, Huntingdon, PA; 10/21/24 Penn Highlands Healthcare and Excel Companion Care, LLC, doing business as Help at Home, have agreed to the acquisition of Helpmates, Inc., the health system’s non-skilled in-home services. Help at Home is a national in-home provider with a focus on unskilled personal care services. “The acquisition of Helpmates enables our health system to focus and grow the core services of Healthcare at Home which include home health and hospice,” said Cheryl Mitchell, Service Line Leader of Penn Highlands Healthcare at Home. ... The acquisition will occur on or around December 9, 2024 following governmental approval.