Contessa has launched a joint venture in Michigan with Henry Ford Health System to provide high-acuity home care services as well as palliative care. Contessa is a subsidiary of Amedisys (NASDAQ: AMED), which acquired the company in June in a $250 million deal.
Contessa has seen substantial growth during the COVID-19 pandemic as more health care has moved into the home due to reticence among some patients to seek institutional care, and the deadly virus continues to strain hospital capacity.
“There has never been a more important time for us to partner with our patients and members along their entire health care journey and to give them the choices they want and need,” said Wright Lassiter, III, president and CEO of Henry Ford Health System. “We are excited to partner with Contessa for this opportunity to build on our strong foundation of home health care and further integrate the care and coverage we provide to improve the experience and the outcomes our customers deserve.”
Contessa has developed a risk-based model branded as Home Recovery Care that it applies to its hospital- and skilled nursing-at-home services. This caught the eye of Amedisys, which has been working to build out its high-acuity home care business lines.
The multiple in the deal was 3.9 times 2022 revenue, compared to 6x for similar companies. The transaction placed Amedisys among the first in the home-based care space to offer hospital or skilled nursing at home on a national scale.
Amedisys began dipping its toes into higher-acuity care prior to the Contessa deal. Hospice News’ sister site Home Health Care News reported in April that the company was launching a SNF-at-home pilot program.
Contessa’s has a solid track record of reducing hospital readmissions. The model reduces readmission rates by 44%; decreases the mean length of a hospital stay by 35%; and has a patient satisfaction score of more than 90%, according to a statement by the company.
A key component of the new joint venture is Contessa’s Palliative Care at Home business, which offers a combination of home-based and virtual services.
Hospital system partnerships have been a priority for Contessa during 2021. The company in February launched a palliative care enterprise in partnership with Mount Sinai Health System in New York City, also branded as Palliative Care at Home. The company reportedly has a pipeline for similar partnerships that includes more than 100 hospitals in 28 states, according to a statement by Amedisys.
Henry Ford Health System is a nonprofit, academic and integrated health system comprising five acute-care hospitals and more than 250 additional care sites offering services related to cancer and orthopedics, sports medicine, behavioral health, and urgent care, among others.
“Henry Ford Health System is committed to putting its patients at the center of its care delivery, and Henry Ford Hospital Care at Home is a natural extension of that passion,” Contessa CEO Travis Messina. “This model personalizes care for acute and chronic conditions, while lowering costs and increasing patient satisfaction.”
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