Amedisys, UMC Joint Venture Opens Texas Hospice, Home Health Center

A joint venture between UMC Health System and home health and hospice provider Amedisys (NASDAQ: AMED) has opened a de novo in Lubbock, Texas. UMC owns 50% and Amedisys owns 50% of the new location, branded as UMC Home Health and Hospice, an Amedisys partner, LLC.

The new location is located within the UMC Business & Technology Center. The two organizations launched their joint venture in March. UMC Health sought to expand its capabilities for home-based care. The partnership extended the health system’s home health business line and marked UMC’s entry to the hospice space.

“UMC Health System entered this joint venture because we saw the opportunity to partner with one of the leading home health providers in the country with strong ties to West Texas,” Aaron Davis, chief experience officer at UMC, told Hospice News. “UMC Health System saw the need to add hospice as a service line to our system. Partnering with Amedisys gives us the opportunity to provide elite level care in this new area from the start.

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With the COVID-19 pandemic causing patients anxiety about receiving institutional care, the outbreak has accelerated the trend of moving more health care into the home.

Some hospital systems are seeking to bolster their community-based services, as evidenced most recently by HCA Healthcare’s (NYSE: HCA) $400 million purchase of a majority stake in Brookdale Senior Living’s (NYSE: BKD) hospice and home health segment. An HCA and Brookdale joint venture later sold a portion of the home health and hospice assets to LHC Group (NASDAQ: LHCG). The companies divested locations that were outside the HCA service region.

Demographic tailwinds have been fueling a thriving hospice market in Texas. The Lone Star State has the third largest elderly population in the nation, according to the Texas Demographic Center, a state institution. The number of Texans 65 or older grew by 49.5% between 2000 and 2014. Only California experienced a higher rate of increase among their senior population.

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Texas ranks 15th among the states in hospice utilization, with 52.8% of Medicare decedents electing hospice in 2018, according to the National Hospice & Palliative Care Organization. Utah had the highest rate of utilization that year at 60.5%, compared to a national average of slightly more than 50%.

Amedisys earned more than $564 million in the second quarter of 2021, up from $485 million during the prior year’s quarter. The company’s business accounted for $186.9 million of 2021 Q2 revenue.

“We are privileged to partner with UMC to bring our clinically distinct care to this community,” said Amedisys President and Chief Operating Officer Chris Gerard. “Whether you or a loved one are coming home from the hospital, have been diagnosed with a chronic disease, or want comfort and quality of life while facing a terminal illness, we can provide the most appropriate level of care wherever you call home.”

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