Literature Review

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. 

UnitedHealth Group waives deadlines to complete $3.3B home health acquisition The MInnesota Star Tribune; by Brooks Johnson; 12/27/24 UnitedHealth Group has filed for more time to complete a $3.3 billion deal to buy Amedisys, a home health care and hospice company, after the companies agreed to waive deadlines in the face of antitrust scrutiny. The U.S. Department of Justice and several states last month sued to block the deal, alleging the merger would give the Minnetonka-based health care conglomerate a commanding stake in many areas. “ ... UnitedHealth and Amedisis agreed to waive two deadlines to complete the deal, according to a Securities and Exchange Commission document filed Friday. One would have given 10 days after a court ruling to complete the deal; the other gave the companies until the end of 2025. UnitedHealth will now have to pay $275 million if the company backs out of the deal, a $25 million increase, and that figure could rise to $325 million.

Providence’s joint venture with Compassus likely delayed amid concerns about patient care and rural access Home Health Care News; by Audri Martin; 12/19/24Oregon’s Health Care Market Oversight (HCMO) program is reviewing a proposal to spin off Providence’s home health and hospice services into a joint venture supported by private equity. ... OHA’s HCMO program evaluates health care business transactions to ensure they do not negatively impact citizens or communities. The program also empowers state regulators to impose conditions on acquisitions and mergers or reject deals they find anti-competitive. Critics of the deal argue that the joint venture will result in cost-cutting measures, increased staff workloads and reduced patient services. Providence is the fifth largest nonprofit health care provider in the United States, while Compassus is a private equity-backed provider of home-based care services operating in more than 30 states. 

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. 

Walgreens considers selling to PE firm: 5 things to know  Becker's ASC Review; by Patsy Newitt; 12/11/24 Walgreens Boots Alliance is reportedly considering selling itself to private equity firm Sycamore Partners and becoming private, The Wall Street Journal reported Dec. 10. Here are five things to know:

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.

Psyence Biomed executes binding agreements with Optimi Health Corp GlobeNewsWire, New York; Press release; 12/10/24 Psyence Biomedical Ltd. (Nasdaq: PBM) ("Psyence Biomed" or the "Company") today announced that it has progressed beyond the previously-announced non-binding Letter of Intent (LOI) and executed binding agreements with Optimi Health Corp. Under the terms of the agreements, Optimi becomes the exclusive supplier of GMP-certified, nature-derived (non-synthetic) psilocybin extract for Psyence’s global drug development and commercialization initiatives for FDA-approved uses in the Palliative Care context.

VitalCaring’s PE backers considering appeal of Encompass, Enhabit lawsuit Hospice News; by Jim Parker; 12/6/24 Nautic Partners and The Vistria Group, the private equity backers of home health and hospice provider Vital Caring, are mulling a potential appeal of a federal court’s recent decision in a dispute with Encompass Health (NYSE: EHC) and Enhabit Inc. (NYSE: EHAB). A federal judge in Delaware on Monday ordered VitalCaring, Nautic and Vistria to share 43% of future profits Encompass Health and Enhabit Inc. The two companies allege that the founders of VitalCaring, including CEO April Anthony, used unethical practices to get the company off the ground, adversely affecting the two plaintiffs. Anthony previously served as CEO of Encompass Health’s home health and hospice segment. The two private equity firms, co-defendants in the lawsuit, are now considering their legal options.

Delaware Court of Chancery awards damages and other relief to Encompass Health and Enhabit for misconduct by April Anthony, other former officers, and private equity firms Vistria Group and Nautic Partners Associated Press (AP) - Business Wire, Birmingham, AL and Dallas, TX; 12/4/24 On Monday, Encompass Health and Enhabit won their lawsuit in the Delaware Court of Chancery related to breaches of fiduciary duty by April Anthony, Luke James, and Chris Walker while they served as the senior officers at Encompass Health’s former home health and hospice division, which is now Enhabit. The Court awarded judgment against private equity firms Vistria Group and Nautic Partners and the home health and hospice business now known as VitalCaring Group for aiding and abetting “the egregious breaches of the duty of loyalty” by Anthony, James, and Walker. The case was the subject of a 7-day trial in December 2023. After considering “the damning record presented at trial,” the Court found that, while employed by Encompass Health, Anthony, James, and Walker usurped acquisition opportunities falling within Encompass Health’s line of business, used Encompass Health’s confidential information, and swayed key Encompass Health employees to join them with the promise of equity in the home health and hospice competitor that Anthony now heads. 

Faith Home Health and Hospice to take over Holton Hospital’s home-based care programs Hospice News; by Jim Parker; 11/27/24 Kansas-based Faith Home Health and Hospice will acquire the home-based care operations of Holton Community Hospital. The hospital in September announced that it would be closing its home health and hospice services as of Dec. 31, citing “significant financial challenges brought on by changes in health care payment models, the expansion of Medicare replacement plans and increasing competition from other agencies.” “[The two organizations are] actively working towards finalizing a purchase agreement that ensures [the hospital’s] dedicated local staff will continue to provide compassionate care to the community,” Holton Community Hospital CEO, Carrie Lutz, said in a press release. 

Why the DOJ’s lawsuit against the UGH-Amedisys merger may not go anywhere MedCityNews; by Marissa Plescia; 11/21/24 Experts aren’t sure what the outcome of the DOJ’s recent lawsuit against the proposed UnitedHealth Group/Amedisys merger will be under the incoming Trump administration. The Biden administration has focused more on supporting clinicians, while the previous Trump administration favored corporations. ...  But even aside from the differences in governing philosophy, one expert noted that the main reason for antitrust lawsuits — prices would rise as a result of the transaction, hurting consumers and patients — seems to be missing from the equation here. That’s because of the outsized role Medicare and Medicaid play in the home health industry. ... By acquiring Amedisys, UHG would grow its home health and hospice footprint to five more states, as well as receive 500 additional locations across 32 states it already operates in. The deal would also give UHG control of at least 30% of the home health or hospice services in eight states. ... Will the DOJ succeed? It's hard to say for sure what the outcome of the DOJ’s lawsuit will be, particularly with the change in administration. ... 

Hospice a cornerstone of New Day’s 3-pronged growth strategy Hospice News; Holly Vossel; 11/20/24 New Day Healthcare LLC is prioritizing hospice growth in its strategic plans as the home-based care company focuses on improving quality for patients across the care continuum. Texas-based New Day launched in 2020 by a group of former hospice and home health professionals. The organization offers hospice, home health and personal care through several brands. New Day’s three-pronged merger and acquisition approach hinges on culture, quality and clinical excellence, according to CEO and Founder G. Scott Herman. Quality is perhaps the most important driver in a transaction consideration, Herman stated. ... To date, New Day has integrated 11 acquisitions into its pipeline, four of which have involved hospice assets.