Literature Review

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. 

Fitch: Scrutiny of private equity deals is short-term positive Modern Healthcare, by Hayley Desilva; 3/18/24 Increased federal scrutiny of healthcare mergers and acquisitions is expected to have mixed consequences for providers' credit, particularly when private equity buyers are involved, according to Fitch Ratings. ... In December, the [Federal Trade Commission] FTC updated its merger guidelines to foster competition across all industries, including healthcare. However, healthcare acquisitions are expected to increase this year as financial conditions improve.

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

Why Northwell wants to buy Nuvance Modern Healthcare, by Caroline Hudson; 3/6/24 The deal would create a system with 28 hospitals and more than 1,000 care sites across New York and Connecticut.Editor's Note: Access to this article requires a subscription.

What the UnitedHealth Group Antitrust Investigation means for Amedisys, home health industry Home Health Care News, by Andrew Donlan; 3/1/24 Since the news surfaced Tuesday that the Department of Justice had opened an antitrust investigation into UnitedHealth Group (NYSE: UNH), additional questions have bubbled up. Namely, those questions surround the home health provider Amedisys Inc. (Nasdaq: AMED), which agreed to be acquired by UnitedHealth Group’s Optum in June of last year.

IntellaTriage strengthens position as market leader through NurseLine acquisitionFOX WTNZ TV 43; 2/29/24IntellaTriage, the leading provider of after-hours nurse-first triage services for hospice and home health, is excited to announce its strategic acquisition of NurseLine, a prominent nationwide provider of hospice and home health triage services. The transaction was completed for an undisclosed sum and marks a significant step in IntellaTriage's commitment to enhancing patient care and streamlining healthcare delivery.

(Private Equity Issue) Anesthesiology group must cut ties with 5 hospitals: Colorado AGBecker's Hospital Review, by Alan Condon; 2/27/24Colorado Attorney General Phil Weiser has announced an agreement with U.S. Anesthesia Partners that resolves the private equity-backed company's alleged anticompetitive business practices that drove up prices for consumers receiving surgical anesthesia services.Publisher's note: Private equity concerns have impacted hospices the past few years. Private equity concerns in other fields are also catching our attention.

Legislation aims to increase scrutiny of private equity healthcare acquisitionsMcKnights Senior Living, by Lois A. Bowers; 2/27/24Legislation introduced ... in [California] would give the attorney general oversight of private equity and hedge fund acquisitions of long-term care and other healthcare facilities. Backers of AB 3129 say that it would “safeguard fair competition and root out anticompetitive practices by dominant corporations” as well as “ensure that the acquisitions are in the public interest.” Under the bill, the AG could grant, deny or impose conditions to a change of control or acquisition between a private equity group or hedge fund and a long-term care or other healthcare facility.