Bristol Hospice Adds California-based Hospice

Bristol Hospice Adds California-based Hospice

Bristol Hospice, a portfolio company of Webster Equity Partners, is now the leading hospice provider in California, adding Health Essentials, LLC (d/b/a Remita Health) for an undisclosed sum. SV Health Investors, Petra Capital Partners and Bessemer Ventures are all selling Remita Health in this acquisition. Remita Health provides compassionate hospice and palliative care at six hospice care locations across Arizona, California and Nevada. With the addition of Remita Health, Bristol Hospice will become the leading hospice provider in the state of California (the largest hospice market in the U.S.) by adding four service locations in Orange County, Northern Los Angeles, Central Los Angeles,... Read More »
Hospice M&A Activity Surges in 2020

Hospice M&A Activity Surges in 2020

Despite the volatile market conditions for healthcare M&A, hospice targets have remained a remarkably consistent draw for investors, according to data captured in DSO. In the second quarter of 2020, 70% of HH&H transactions were for hospice specific targets, or targets that provided only hospice services, instead of a mix of hospice and home health services. In Q1:20, only 22% of transactions focused on hospice targets, so it seems hospice demand is rising. So why are hospice targets continuing to attract investors, even as interest in home health targets slides? The appeal of the hospice market could be attributed to its stable reimbursement and payment rates compared with home... Read More »
The Pennant Group Expands in the West

The Pennant Group Expands in the West

The Pennant Group, Inc. (NASDAQ: PNTG) is having a good start to the third quarter. The healthcare services company announced on July 1 it acquired two home health & two hospice agencies with multiple locations across southeastern Idaho and northern Utah from Signature Health Care at Home. The acquired locations will operate under the brand Symbii Home Health and Hospice. Pennant Group’s CEO Daniel Walker also disclosed in the announcement that more acquisitions are in the pipeline for the company.   Mr. Walker’s pledge could be a good sign for the Home Health & Hospice market in the second half of 2020. The Pennant Group formed in October 2019 after it was spun out... Read More »
Kindred Healthcare Pushes into Behavioral Health Care

Kindred Healthcare Pushes into Behavioral Health Care

Kindred Healthcare has made a name for itself in the home health sector, but now the healthcare company is looking to expand in the behavioral healthcare space. On June 1, Kindred announced the acquisition of two behavioral health hospitals, WellBridge Greater Dallas and WellBridge Fort Worth from WellBridge Healthcare. Each hospital has 48 licensed beds. The acquisition of the two facilities is part of an effort to boost the Kindred Behavioral Health (KBH) brand, Kindred Healthcare’s behavioral health services division. It plans to grow its behavioral health footprint across the U.S. through joint ventures and distinct part unity management with leading hospital systems, in addition... Read More »
Disruption Hits Home Health & Hospice M&A

Disruption Hits Home Health & Hospice M&A

At the start of the year, the biggest disruption expected in the Home Health & Hospice sector was the Patient-Driven Groupings Model (PDGM), a reimbursement overhaul introduced by the Centers for Medicare and Medicaid Services (CMS) on January 1, 2020. The impact on small agency owners was expected to be tough, with many industry insiders predicting a wave of bankruptcies, closures, and sales in the first year of PDGM. That would have been disruptive for the M&A market, but it wasn’t expected to last, once companies adjusted to the changes in rates and cash flow. Now, with the COVID-19 pandemic more than 100 days into its march across America, PDGM seems like the least of the... Read More »
Amedysis Expands its Hospice Footprint

Amedysis Expands its Hospice Footprint

Amedysis, Inc. (NASDAQ: AMED) is expanding hospice services. The Baton Rouge, Louisiana-based home care company just acquired AseraCare Hospice in Plano, Texas. Hospice has been an increasing focus for Amedysis, which has long concentrated on personal home care services. Founded in 1994, AseraCare Hospice cares for more than 2,100 patients daily and employs more than 1,200 hospice professionals in 44 locations across 14 states, generating approximately $117 million in annual revenues. It is the hospice subsidiary of skilled nursing facility operator Golden Living, formerly Beverly Enterprises. Amedysis agreed to a purchase price of $235 million for 100% ownership. The price includes a $32... Read More »