ResCare Switches to ‘Home Health Lite’
ResCare Inc., a portfolio company of Onex Corp. (TSE: ONEX), is changing the direction of its home health segment. ResCare, the nation’s largest private provider of services to people with disabilities, has been divesting its home health assets since 2014. A recent 10-K filing by Onex Corp. stated that ResCare was exiting the skilled line of business in the home care segment and transitioning to home health services without the skilled nursing. The exit resulted in a 2% decrease in revenue between 2015 and 2016, which was substantially offset by acquisitions within the home care and residential services segments, according to the filing. On April 10, 2017, Active Day/Senior Care... Read More »Good-Bye, ACA. Now What?
And so it begins. A new year, a new administration, and a foreboding that things can and will go wildly out of control in the healthcare industry, as the new administration dismantles the Affordable Care Act and doesn’t bother to replace it. Judging from the market’s behavior since the November 8 election, the notion that a Hillary Clinton victory was “baked in” to every healthcare deal doesn’t hold. Certainly some deals may have been put on hold following Donald Trump’s election, but 2016 ended with 1,536 deals, in our preliminary count. That’s 1% higher than 2015, which was the first year to break 1,500 transactions. Spending on deals in 2016, while not in record territory, was healthy.... Read More »Home Health Sector Closes 2016 in ‘Epic’ Deal
The year is ending on a high note for mergers and acquisitions in the Home Health & Hospice sector. Deal volume reached 54 transactions by mid-December, and could go higher as we finish up the year. Last year ended with 51 transactions. Consolidation continued, as buyers such as Kindred Healthcare (NYSE: KND) and Epic Health Services announced four acquisitions apiece. Three other companies, Almost Family (NASDAQ: AFAM), Jordan Health Services and PSA Healthcare, each made three acquisitions. Eight private equity firms made nine deals. Blue Wolf Capital Partners was the sole firm to announce two in this sector. Deal value wasn’t as impressive in 2016, but that is because some of... Read More »Community Health Systems Starts Divesting Hospitals
It’s no secret that Community Health Systems (NYSE: CYH) has a $15 billion debt load, and that despite its spin-off of Quorum Health Corp. (NYSE: QHC) last April, its financial performance hasn’t improved. During the company’s third-quarter earnings call on November 1, CEO Wayne Smith said the company was in discussions to shed 17 of its 157 hospitals, as well as home health services and non-hospital real estate. The most recent deal following that call was announced on November 17. Community Health’s Spokane, Washington-based Rockwood Health System will become part of Tacoma, Washington-based MultiCare Health System, a not-for-profit system that operates five... Read More »Schedule a demo
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