Addus Fights Off Labor Headwinds to Grow Hospice Segment

As Addus Homecare (NASDAQ: ADUS) begins integration of its recent $85 million JourneyCare Hospice acquisition, the company is strategizing on how to absorb wage increases accompanying the ongoing labor shortage.  The company’s clinical care segment, which includes home health and hospice, is seeing the most significant wage pressures among its business lines, Chairman and CEO […]

Addus Completes $85 Million JourneyCare Transaction

Addus HomeCare (NASDAQ: ADUS) has completed its $85 million acquisition of Illinois-based nonprofit hospice provider JourneyCare Inc. As a result of the deal JourneyCare has transitioned to for-profit status. Addus financed the deal, via cash on hand and the company’s revolving credit facility. The company in 2021 opened a $600 million revolving line of credit […]

Hospice CEOs: Rising Regulatory Scrutiny Could Spur 2022 Acquisition Market

The hospice merger and acquisitions market has been running hot, with activity showing no signs of cooling as 2022 kicks off. Even so, intensifying regulatory pressure could lead a larger contingent of smaller providers to sell, further stimulating the market. M&A activity in the home health and hospice spaces outpaced other health care service sectors […]

Nonprofit Hospices Selling to For-Profit Providers, Trend May Accelerate

Industry consolidation has been robust in the hospice space, with deal volume and valuations outpacing other health care industry sectors. Most of these transactions involve one for-profit company buying another. However, more instances are cropping up in which a for-profit agency purchases a nonprofit hospice. While individual nonprofits have grown in recent years, in aggregate […]

Addus Acquires JourneyCare in $85 Million Deal

Addus HomeCare (NASDAQ: ADUS) has purchased JourneyCare Inc., for an anticipated sale price of $85 million. JourneyCare, a nonprofit, is one of the largest hospice providers in Illinois, serving 750 patients daily in 13 counties. Addus had indicated in 2021 earnings calls that the company would lean its M&A activity towards personal care and home […]

Hospice M&A Expected to Stay Strong in 2022

Despite prevailing COVID-19 headwinds, the hospice and home health mergers and acquisitions market shows no signs of slowing. Labor shortages plaguing the industry may be spurring additional activity as the dwindling workforce is limiting some providers’ ability to grow organically. A number of the larger strategic buyers — LHC Group (NASDAQ: LHCG), Amedisys (NASDAQ: AMED), […]

[UPDATED] CMS, OSHA Issue Vaccine Mandate for All Health Care Workers

The U.S. Centers for Medicare & Medicaid Services (CMS) and the U.S. Occupational Safety & Health Administration (OSHA) have issued emergency regulations requiring COVID-19 vaccination for eligible staff at health care organizations that participate in Medicare or Medicaid. Health care employers must implement a policy requiring staff to receive the first vaccine dose prior to […]

Addus HomeCare Seeks Acquisitions Amid Hospice Census Growth

Addus HomeCare Corp. (NASDAQ: ADUS) has a number of deals in its mergers and acquisition pipeline, some expected to occur in the fourth quarter. The company is leaning its M&A activity towards personal care and home health, but hospice transactions may be in the cards as they work to build density in markets where they […]

Capital One Issues $600 Million in Revolving Credit to Addus to Fuel Acquisitions

Addus HomeCare (NASDAQ: ADUS) has secured a $600 million revolving line of credit, with Capital One Financial Corp. (NYSE: COF) as the lead arranger and administrative agent. The company intends to apply the credit to pursue further acquisitions. Addus is on the hunt for acquisitions. While its 2021 acquisition strategy is heavily weighted toward home […]

Hospices Call for Higher Payment to Offset Minimum Wage Hikes Amid Staff Shortage

While hospices have been focusing efforts to recruit, retain and rebuild their ranks during a financially choppy time, some providers are furrowing their brows over minimum wage increases in the absence of a corresponding raise to Medicare reimbursement.  While federal efforts to boost the minimum wage have stagnated for the time being, action is underway […]