Literature Review

VITAS seeking large acquisitions in hospice CON states Hospice News; by Jim Parker; 11/13/24 As it considers potential acquisitions, VITAS Healthcare is focused on large assets in certificate of need (CON) states. VITAS is a subsidiary of Chemed Corp. (NYSE: CHE). The company this year made its return to the M&A market after a hiatus of several years. In April, VITAS acquired Covenant Health and Community Services’ hospice operations as well as one assisted living facility in an $85 million deal. With that transaction under its belt, more are likely on the way, according to Mike Witzeman, vice president and CFO for Chemed. “We are fairly optimistic on a pipeline of potential Covenant-size deals, but there are a few hurdles from an internal perspective that we would certainly want to keep in mind. First is we like CON states or states where there are restrictions on barriers of entry,” Witzeman said during a presentation at the UBS Healthcare Conference. “The second would then be locations that, generally speaking, have some size to them. That’s important, obviously, from a patient flow perspective, but also from a staffing perspective.” The third major consideration is the price tag. The Covenant deal was sealed at a multiple of 6x to 8x EBITDA. ...

DOJ preps lawsuit to block UnitedHealth-Amedisys deal Modern Healthcare; by Josh Sisco, Bloomberg; 11/12/24 The US Justice Department is moving to block UnitedHealth Group Inc.’s $3.3 billion purchase of Amedisys Inc. over concerns the deal would harm competition in the market for home-health services, according to people familiar with the matter.  Justice Department antitrust officials have signed off on a lawsuit to be filed in federal court as soon as this week to stop the deal, according to the people, who asked not to be named discussing a nonpublic matter. The move follows a meeting last week between company executives and the Justice Department in a last-ditch effort to ease the government’s concerns, the people said. 

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.”

Hospital mergers and health care price increases: A primer for reporters Association of Health Care Journalists (AHCG); by AHCG Staff; 9/24/24 Hospital mergers — market consolidation — can lead to health care price increases of anywhere from 3% to 65%, according to a 2022 RAND Corporation review. The FTC’s director of the Bureau of Economics has said hospitals that merge may charge 40% to 50% more than if they hadn’t merged. Mergers can also result in layoffs and lower tax revenues and have a negative impact on patient care by reducing access to some health care services. With so much research confirming negative effects and as health care prices continue to rise, what — if anything — can be done to slow market consolidation and/or reduce the harms to patients and local economies?

Bristol Hospice opens 4 de novos in 7 days Hospice News; by Jim Parker; 8/19/24 Bristol Hospice has opened four new locations within a single week in three different states. Two of the de novos have launched in Texas in the Rio Grande Valley and Austin communities. The remaining two are in Bangor, Maine and Blue Bell, Pennsylvania. Bristol Hospice, which is backed by the private equity firm Webster Equity Partners, employs more than 3,000 staff in close to 80 locations across 18 states. The company has been a prolific buyer in the M&A market, but more recently has leaned harder into its de novo strategy.

3 of the fastest growing hospice companies Hospice News; by Jim Parker; 8/16/24 Three of the nation’s for-profit hospice companies have hit the accelerator on revenue growth, achieving triple-digit percentages. Each of these organizations — Traditions Health, Fortis Health and HealthFlex Hospice — appeared on Inc. magazine’s 2024 listing of the fastest-growing private companies in the United States. ... 

How health equity impacts hospices’ bottom lines Hospice News; by Holly Vossel; 6/18/24More hospices nationwide have increasingly recognized the value proposition of expanding their reach into untapped and underserved populations and geographic markets. Aside from increased access, census volumes and quality, health equity’s return on investment can also include a better recruitment and retention outlook, according to David Turner, vice president of special projects and initiatives at St. Croix Hospice, which serves 10 Midwest states. Turner is also CEO and partner of Nashville-based Heart’n Soul Hospice. Hospices stand to benefit from recruiting and retaining a more ethnically diverse base of interdisciplinary workers and c-suite executives, Turner said at the Hospice News Elevate conference in Washington D.C.

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 ...

Profits at hospice firm VITAS soar by whopping nearly 88 percent in Q4 McKnights Home Care, by Adam Healy; 2/29/24Hospice firm VITAS, a subsidiary of Chemed, enjoyed a stellar fourth quarter as profits rose by nearly 88% to reach $63 million. It helped to buoy Chemed’s overall earnings as the parent company’s other subsidiary, plumbing subsidiary Roto-Rooter, struggled with weaker profits and sales. 

VITAS Expects a Steady 2024 for Revenue, GrowthHospice NewsDecember 4, 2023After the tumultuous years of the pandemic, VITAS Healthcare expects a stable growth trajectory heading into 2024. Florida-based VITAS is a subsidiary of Chemed Corp. Though the company has not yet released financial guidance for 2024, VITAS anticipates a “predictable” 2024 in terms of earnings and growth, executives said at Monday’s Bank of America Healthcare Conference.