Literature Review

For-profit Idaho home health powerhouse seeks expansion in OregonThe Lund Report; by Nick Budnick; 8/27/24Pennant Group wants to acquire home health and hospice agencies from Signature Group, an affiliate of Avamere Health. State health officials are reviewing a giant for-profit Idaho-based home health care company’s $80 million effort to buy home care and hospice companies around Oregon operated by Signature Group, also known as Avamere Health Care. Officials in the Health Care Market Oversight office of the Oregon Health Authority announced a 30-day public comment period on Aug. 23.

Nationwide home healthcare and hospice provider to pay $3.85M to resolve False Claims Act allegations U.S. Department of Justice Office of Public Affairs; Press Release; 8/20/24 Intrepid U.S.A. Inc., headquartered in Dallas, and various wholly-owned subsidiaries (Intrepid) have agreed to pay $3,850,000 to resolve allegations that Intrepid violated the False Claims Act in connection with two lines of its business: first, that Intrepid knowingly submitted claims to Medicare for home healthcare services for patients who did not qualify for the Medicare home healthcare benefit or where services otherwise did not qualify for Medicare reimbursement; and second, that Intrepid knowingly submitted claims to Medicare for patients who did not qualify for the hospice benefit. The settlement is based on Intrepid’s ability to pay.

4 health systems shrinking their hospital portfolios Becker's Hospital Review; by Alan Condon; 8/14/24 Merger and acquisition activity is picking up steam this year after a decline in deal volume during the pandemic, with some large health systems reorganizing their portfolios and offloading hospitals in various markets. Four health systems that have sold or plan to sell multiple hospitals this year:

The billion-dollar DFW healthcare company you haven’t heard of D Magazine; by Will Maddox; 8/16/24 Addus HomeCare has had a busy year. The publicly traded home care, home health, and hospice company employs more than 30,000 people across 214 locations and 22 states, providing care to nearly 50,000 patients. This year, the company has quietly cleared nearly $400 million in acquisitions as it ramps up its presence in Texas and around the country.

On-demand talent can push key objectives forward amid an increase in M&A deals Forbes; by Sunny Ackerman; 8/14/24 As we settle into the latter half of 2024, mergers and acquisitions and other business transformation initiatives are likely to be top of mind for many business leaders. Consider EY’s May 2024 “Deal Barometer,” which predicts that in the United States, “corporate M&A deal volume will increase 20%.” The firm also estimated that M&A deal volume will increase by 16% in the private equity world. ... Given the projected increase in M&A deal activity, I expect to see an increased need for on-demand talent in 2024 and beyond to push key objectives forward, executing strategic goals to close deals and facilitate seamless transitions post-closure. ...

Pennant’s home health, hospice growth ‘significantly ahead’ of prior expectationsHome Health Care News; by Audrie Martin; 8/7/24The Pennant Group Inc. (Nasdaq: PNTG) leaders highlighted the company’s significant home health growth Tuesday. They also teased continued expansion in the East Coast and elsewhere. “We are thrilled to report record-breaking second quarter results as we continue to experience momentum across all our service lines and create meaningful growth opportunities for local leaders and teams,” Pennant CEO Brent Guerisoli said during the company’s second-quarter earnings call. “Our financial performance and growth trajectory reflect the consistent efforts we have applied to every aspect of our business through our five key focus areas: leadership development, clinical excellence, employee engagement, margin and growth.” The Pennant Group is a holding company based in Eagle, Idaho, with independent operating subsidiaries that provide health care services through 117 home health and hospice agencies and 54 senior living communities across 13 states.

Hiring, Covenant Care transaction propelling growth at Vitas Hospice News; by Jim Parker; 7/25/24 Vitas Healthcare, a subsidiary of Chemed Corp., is reaping the benefits of this recent $85 million purchase of Covenant Health and Community Services hospice business, along with one assisted living facility location. The deal is structured as an asset purchase, which allows the buyer to assume liability for assets included in the transaction. It also brought Vitas into the Alabama market and expands its geographic footprint in Florida and marked the company’s entry into the assisted living space. This is Vitas’ first deal in several years, but more are likely on the way, according to Chairman and CEO Nick Westfall.

Guest column: Private equity poses threat to home health care The Gardner News; by Jane Pike-Benton. Worcester Telegram & Gazette; 7/21/24 Health care observers across the commonwealth are focusing their attention on a bankruptcy court in Houston to learn the fate of eight Massachusetts hospitals being sold at auction by Steward Health Care. Steward’s financial collapse has unsurprisingly brought scrutiny on private equity in care delivery to a crescendo. ...  Nationally, the number of hospice agencies owned by private equity nearly quadrupled from 2011 to 2019. Seventy-two percent of those acquired hospices were previously nonprofits. As policymakers work to stabilize a health care capacity crisis pushed to the brink by Steward, they cannot afford to lose sight of home health and hospice providers in the shuffle. Organizations like ours, many of which were founded with nonprofit missions well over a century ago, are essential to hospitals desperately looking to discharge patients.

Kindred and related entities agree to pay $19.428M to settle federal and state false claims act lawsuits alleging ineligible claims for hospice patients U.S. Department of Justice - Office of Public Affairs; Press Release; 7/17/24 Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon. [Click on the title's link to continue reading.]

AccentCare unveils new hospice care center in Miami-Dade County accentCare, Miami, FL; 7/10/24 AccentCare, a nationwide leader in home health, hospice and personal care services, ... announced the opening of a new inpatient hospice center in Miami. Expanding its footprint in South Florida, AccentCare’s new facility aims to address the region’s diverse population and growing need for greater access to personal and high-quality hospice care. “We are thrilled to expand our presence in the Miami area, offering compassionate and personalized hospice care for more patients and their families in Florida’s diverse communities,” said Andy Johnston, President of Hospice & Personal Care Services, AccentCare. ... AccentCare’s new 30,000-square-foot hospice center offers a range of services, including nursing care, pastoral care, medical social work, respite services, 24-hour critical home care and bereavement support for families. 

Apply now for AHA’s 2025 Circle of Life Award recognizing end-of-life and hospice care providersAmerican Hospital Association press release; 5/30/24Applications are open through July 24 for AHA’s 2025 Circle of Life Award, which recognizes hospitals and health systems that advance end-of-life and hospice care that is safe, timely, efficient, effective and equitable. There will be up to three recipients of the award, and Citations of Honor may also be presented to other noteworthy programs.

BrightSpring Health Services announces definitive agreement to acquire Haven Hospice, expanding its hospice services into the CON state of FloridaBrightSpring press release; 6/24/24BrightSpring Health Services (NASDAQ: BTSG), a leading provider of home and community-based health services for complex populations, today announced a definitive agreement to acquire the assets of North Central Florida Hospice, Inc. and Haven Medical Group, LLC (collectively “Haven Hospice”), a Florida-based company holding a Certificate of Need (CON) for comprehensive hospice care services in 18 counties in north central Florida. ... BrightSpring’s acquisition of Haven will allow the Company to provide advance care planning, palliative, and hospice services throughout Florida Agency for Health Care Administration service areas 3A, 4A, and 4B. Total consideration for the acquisition is $60 million, with $15 million in cash at close, $30 million in Company equity at close, and an additional $15 million in a seller note payable four years after closing. The acquisition is expected to close in the third quarter of 2024.

Tapestry Hospice settles healthcare kickback claims for $1.4 million United States Attorney's Office - Northern District of Georgia; Press Release; 6/20/24 Tapestry Hospice of Northwest Georgia, LLC, and its owners and managers, David Lovell, MD, Stephanie Harbour, Ben Harbour, and Andrew Nall (collectively “Tapestry”), agreed to pay $1.4 million to resolve allegations that they violated the False Claims Act by entering into kickback arrangements with medical directors in exchange for referrals of hospice patients to Tapestry. “By entering into kickback arrangements, health care providers can cause doctors to make medical decisions that are motivated by financial gain, rather than the patient’s best interest,” said U.S. Attorney Ryan K. Buchanan. “Our office is committed to ensuring the accountability of health care providers who put their own financial needs ahead of their patients.” “The False Claims Act settlement in this case will hopefully be a deterrent to those who selfishly evade our federal healthcare programs for their own benefit,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The message is clear, the FBI will not tolerate companies operating corporate-wide schemes to illegally line their pockets.”