Humana Completes $2.8 Billion Kindred Hospice Divestiture

Humana Inc. (NYSE: HUM) has completed its $2.8 billion sale of Kindred at Home’s hospice and personal care segments, divesting a 60% stake to the private equity firm Clayton, Dubilier & Rice. Humana will retain the remaining 40%. The sale coincides with Humana’s stated goal of raising its enterprise value by $1 billion, while building […]

St. Croix Acquires Corpore Sano Hospice in Michigan

St. Croix Hospice has acquired Corpore Sano Hospice in Plymouth, Mich., the company’s second location in that state. Financial terms were undisclosed. St. Croix, which is backed by the private equity firm H.I.G. Capital, has been on a growth trajectory for at least the past three years, with a focus on Midwestern markets. In addition […]

Beyond Dollars & Cents: Maximizing Sellers’ Returns in Hospice M&A

Hospices considering a sale should not underestimate their value proposition by limiting their focus to revenues and margins. With hospice M&A staying hot, a host of operational and financial pressures — coupled with record-high valuations in the space — has driven a range of providers to consider selling. While a healthy balance sheet is critical […]

Hospices that Excel During COVID More Attractive to Buyers

Hospice acquisition volumes and price tags have hit record highs for several years running. Now, the companies that performed well under the pandemic’s pressure may be drawing more interest from buyers. While a sizzling hospice market saw a cooled start this year, merger and acquisition activity is still outpacing other health care sectors. Demographic tailwinds, […]

Hospice Operators Watching Closely as Large Payers Transform the Industry

For better or worse, the growing presence of large insurance companies in the hospice and home health provider space could be transformative for the industry. Two transactions demonstrate rising interest among payers in owning the home-based care assets that serve their beneficiaries. Humana Inc. (NYSE: HUM) in 2021 acquired 100% ownership of Kindred at Home […]

What’s Fueling the Hospice JV Furnace

More hospice and palliative care providers are pursuing joint ventures with hospitals and health systems. Joint ventures offer unique advantages compared to traditional referral streams, according to Aaron Stein, COO of Contessa Health, a subsidiary of Amedisys (NASDAQ: AMED). Joint ventures allow providers to develop integrated care models that build improved transitions of care, said […]

FTC Queries UnitedHealth Group, LHC Group on Wage Bargaining

The Federal Trade Commission (FTC) is seeking information from UnitedHealth Group (NYSE: UNH) and LHC Group Inc. (NASDAQ: LHCG) regarding the ways minimum wage workers in the space bargain for higher wages. The UnitedHealth Group subsidiary Optum in March announced that it would acquire LHC Group for $5.4 billion, subject to customary regulatory approvals. “As […]

Ohio’s Hospice Expands with New Morrow County Affiliate

Hospice of Morrow County has joined forces with Ohio’s Hospice of Central Ohio, a member of a regional partnership of providers in the state.  Rebranded as Ohio’s Hospice of Morrow County, the organization is now an affiliated member of Ohio’s Hospice, a partnership of nonprofit community-based providers that serve a combined 58 counties statewide. “Together, […]

CommuniCare Health Services Takes Over Operations of Transitional Care Company Stonerise

Ohio-headquartered CommuniCare Health Services recently took over operations of hospice and home health provider Stonerise, expanding the company’s reach in its home state as well as West Virginia. Financial terms of the move were undisclosed. Stonerise’s transitional care model is designed to support patients and families across the health continuum. The company’s range of services […]

Hospice M&A Outpacing Other Sectors Despite Q1 Slump

Despite hitting a brief slump at this year’s start, hospice merger and acquisition activity still managed to outpace other health care sectors.  Strong hospice and home health consolidation continued during the first quarter of 2022, according to a recent report from Provident Healthcare Partners. Both private equity firms and strategic investors remained “bullish” on home-based […]