Literature Review

State seeks input on Columbia Gorge hospital, Gentiva hospice care The Lund Report, Oregon and SW Washington; by Nick Budnick; 8/29/24 State officials are checking in on two health care acquisitions that have occurred since August of 2022, the absorption of Mid-Columbia Medical Center into California-based Adventist Health as well as a private equity firm's acquisition of Kindred Hospice. Now the state wants to hear how the renamed entities are doing: Adventist Health Columbia Gorge and Kindred Hospice Care. “OHA wants to understand how ownership changes may have affected health care services at AHCG and Gentiva hospice agencies,” according to a state announcement. “We’d like to hear from patients, health care providers, employees, and community members who have interacted with AHCG or Gentiva in the past year.”

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:

Why Optum thrives where other companies failed Becker's ASC Review; by Patsy Newitt; 8/16/24 UnitedHealth Group's Optum, parent company of Deerfield, Ill.-based ASC chain SCA Health, has seen massive growth in the last few years as other big healthcare networks face obstacles in reaching large-scale profitability. ... A key to Optum's success is its affiliation with a large insurance business. The Journal pointed to the "several financial incentives for an insurer to own a health provider, including that it pays itself." ... And Optum keeps growing. The company spent $31 billion on acquisitions in the last two years, The Oregonian reported May 13. ... UnitedHealth Group is facing scrutiny regarding the Change Healthcare ransomware attack in February. The attack delayed payment and claims processing for healthcare providers around the country, as UnitedHealth subsidiary Change Healthcare handles an estimated one in three healthcare transactions.

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 Group acquires Signature Healthcare at Home’s Washington, Idaho assetsHomecare; 8/6/24The Pennant Group, Inc. announced its purchase of the Washington and Idaho assets of Signature Healthcare at Home. The Pennant Group is a company focused on affiliated home health, hospice and senior living. Pennant previously announced its agreement to purchase the Signature assets, with the planned closing of Signature’s Washington and Idaho assets on Aug. 1, 2024. A second purchase agreement of Signature’s Oregon business is intended to close on Jan. 1, 2025. The acquisition of Washington and Idaho’s assets will enhance Pennant’s existing presence in Idaho and establish Pennant’s footprint in Washington, a critical certificate of need state.

UnitedHealth and Amedisys reach divestiture agreement in effort to complete merger  Open Minds - Industry Bulletins; 7/29/24 UnitedHealth Group and home health and hospice provider Amedisys entered an agreement to sell certain assets to a subsidiary of VitalCaring Group (VCG) as part of an effort to obtain regulatory approval for a merger first announced in June 2023.  The deal, valued at $3.3 billion, has been held up due to concerns from the Department of Justice. UnitedHealth and Amedisys declined to provide more information on the divestiture. According to an SEC filing, the deal with VCG Luna would only go through if UnitedHealth and Amedisys complete their merger. Earlier in 2024, Amedisys agreed to divest upwards.

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.

Pennant acquires Signature Healthcare at Home assets for $80M McKnights Home Care; by Adam Healy; 7/11/24The Pennant Group, a provider of home health, personal care, hospice and senior living services, disclosed ... that it agreed to purchase assets of certain Signature Healthcare at Home affiliates for $80 million. Signature provides home health and hospice services in Oregon, Washington and Idaho, and its 650 staff members serve more than 12,000 patients annually, according to an 8-K filing with the Securities and Exchange Commission. Pennant’s acquisition of Signature’s Washington and Idaho assets is expected to close on Aug. 1, while its acquisition of Signature’s Oregon assets is expected to close January 1, 2025.

Adena Health announces new joint venture to advance home health and hospice services Chillicothe Gazette - USA Today Network; 7/10/24 Adena Health has announced a new joint venture partnership with national home health leader Alternate Solutions Health Network (ASHN). The new home health and hospice collaboration will be jointly owned by Adena Health and ASHN, and operate as Adena Home Health and Hospice effective this August. Headquartered in Kettering, ASHN partners with more than 90 multi-facility home healthcare and hospice healthcare systems across five states through joint ventures that include area partnerships with The Christ Hospital Health Network, Genesis Healthcare System, Kettering Health, and The Ohio State University Wexner Medical Center. The Adena team will join forces with ASHN’s group of leading physicians and healthcare professionals to expand the suite of home health and hospice services while enhancing patient experience and nurturing clinical talent.

Why one hospital merger stands out among the rest Becker's Hospital Review; by Andrew Cass; 7/3/24 Two rival hospitals in Terre Haute, Ind., seeking to merge are the first to test the state's certificate of public advantage (COPA) law, The Washington Post reported July 3. Five things to know:

16 hospital M&A moves to know in the 1st half of 2024 Becker's Hospital Review; by Andrew Cass; 6/28/24 From a Tenet selling spree to Risant Health's acquisition of Geisinger, here are 16 hospital merger and acquisition moves to know from the first six months of 2024. 

Amedisys to divest certain home health locations to VitalCaring, clearing path for UnitedHealth Group deal Home Health Care News; by Andrew Donlan; 6/28/24 Amedisys Inc. filed paperwork Friday with the U.S. Securities and Exchange Commission saying it has agreed to divest “certain” locations to an affiliate of home health and hospice company VitalCaring. The divestiture was a way for Amedisys to avoid further antitrust concerns from regulators prior to it joining UnitedHealth Group. UnitedHealth Group’s Optum agreed to purchase Amedisys last June for a purchase price of $3.3 billion. Optum already owns LHC Group, another one of the largest home health companies in the country.