Literature Review

Providence spins off patient portal company Modern Healthcare, by Brock E.W. Turner; 4/2/24 Providence is spinning off a patient portal company from its incubator program, the health system said Tuesday. The Renton, Washington-based Catholic health system Providence is spinning out consumer engagement technology company Praia Health. Praia also received a $20 million Series A funding round as part of the spinoff.

PACS Group could raise $400 million in IPOMcKnights Long-Term Care News, by Kimberly Marselas;   4/3/24PACS Group, one of the nation’s largest nursing home operators, could raise about $400 million in an initial public offering, according to a fresh round of documents filed this week. Utah-based PACS plans to offer 19.05 million shares of common stock when it goes public, with an estimated price of $20 to $22 per share. At the top of that range, the move to the New York Stock Exchange could net the company $429 million in value.

UCI Health completes acquisition of 4 Tenet hospitals Becker's Hospital Review, by Naomi Diaz; 3/27/24 Orange, CA-based UCI Health has completed its acquisition of Tenet Healthcare's Pacific Coast Network, which includes four hospitals in Southern California and their associated outpatient locations. As part of the agreement, Dallas-based Tenet's medical centers — Fountain Valley Regional Hospital, Lakewood Regional Medical Center, Los Alamitos Medical Center and Placentia-Linda Hospital — will now be part of UCI Health, according to a March 26 news release from UCI Health. The hospitals were sold for $975 million.

Steward to sell 'highly desired' physician group to Optum Becker's Hospital CFO Report, by Alan Condon; 3/27/24 Dallas-based Steward Health Care plans to sell its physician group to UnitedHealth Group's subsidiary Optum, The Boston Globe reported March 26. The proposed sale of Stewardship Health is part of the 33-hospital system's plan to shore up its finances amid ongoing challenges, including falling behind in paying bills and rents. If approved, physicians who work at Steward facilities across nine states would be employed by Optum, the largest employer of physicians in the U.S.

Private equity more common in Massachusetts health care: Steward crisis has state on hunt for possible legislative response 22 News WWLP.com; by Ashley Shook, Alison Kuznitz, Chirs Lisinski; 3/26/24 The pressure points inflicted by private equity ownership in health care extend far beyond Steward Health Care, and lawmakers have a long menu of policy reforms they can consider to erect new guardrails in a changing environment, experts said Monday. Pushed into public-facing action after a long-simmering financial crisis at Steward burst into public view this year, lawmakers convened a public hearing to explore how deeply private equity has taken root in the Bay State’s health care system and what policymakers should do to prevent harm to patient care. 

Deal or No Deal: The futures of 3 home-based care companiesHome Health Care News; by Andrew Donlan; 3/21/24 Most buyers in home health and personal care are signaling they'll be more active in the M&A market this year. There are three major home-based care deals that have happened, or may happen, in the near-term future. All of them could have significant ripple effects. 

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. 

Oregon's health authority reviewing UnitedHealth's acquisition of Amedisys Reuters, by Leroy Leo; 3/19/24 Amedisys said on Tuesday Oregon's health authority has started a review of UnitedHealth Group's $3.3 billion acquisition of the home health and hospice caregiver. UnitedHealth had announced the acquisition in June, after competing with Option Care Health. 

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