Court Decision on UnitedHealth Group, Change Healthcare Deal Smooths Path for LHC Group Transaction

A recent federal court decision that cleared the way for UnitedHealth Group’s (NYSE: UNH) forthcoming purchase of Change Healthcare (NASDAQ: CHNG) is a positive sign for the insurance company’s pending acquisition of LHC Group (NASDAQ: LHCG). The U.S. Department of Justice sought to block the $13 billion Change Healthcare transaction on anti-trust grounds, alleging that […]

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 […]

CDR Asks State to Approve Sale of 2 Oregon Kindred at Home Locations

Two Oregon locations included in Humana’s (NYSE: HUM) divestiture of Kindred at Home’s hospice assets are currently under review by the state’s health authority — part of the diligence process involved in any M&A transaction. Humana in April signed a definitive agreement to sell a 60% stake in Kindred at Home to private equity firm […]

Regulators Taking Aim at Hospice PE Backers

Private equity firms are pouring investment dollars into hospices at a record pace. Meanwhile, legislators and regulators as far up as the White House are taking aim at those firms. Despite a cool down in the hospice mergers and acquisitions market during the first quarter of 2022, private equity firms have stayed aggressive on deals. […]

WellSky Intent on Expanding Footprint, Presence Across Care Continuum

The post-acute technology company WellSky is spreading its wings over new geographies while growing its client base and expanding its product portfolio. Underlying the company’s strategy is a drive to develop solutions designed to support patient care as consumers navigate their way through the health care system. WellSky is jointly owned by two private equity […]

The Thought Process Behind Humana’s Kindred at Home Transactions

In its calculus behind its 2021 Kindred at Home deal, Humana Inc. (NYSE: HUM) had to weigh the potential cost savings and lucrative hospice divestiture against the labor pressures in the space, as well as the complexity of scaling home-based care in a fragmented industry. Last year, Humana acquired total ownership of Kindred at Home […]

Court Dismisses SouthernCare Fraud Allegations, Proceeds with Whistleblower Retaliation Complaint

The Southern District Court of Mississippi granted hospice provider SouthernCare Inc.’s motion to dismiss a whistleblower’s False Claims Act complaint. However, the court will proceed in hearing allegations that the company terminated an employee who raised concerns about these practices. Former SouthernCare nurse Rhonda McClinton filed a qui tam complaint against the organization in 2016, […]

[UPDATED] Humana to Sell 60% of Kindred at Home Hospice to CDR for $2.8B

Humana Inc. (NYSE: HUM) has signed a definitive agreement to sell a 60% stake in Kindred at Home’s (KAH) hospice and personal care business to the private equity firm Clayton, Dubilier & Rice (CDR) for $2.8 billion. Humana will retain the remaining 40%. Kindred at Home has been on a circuitous journey with Humana. The […]

Hospice M&A to Stay Hot as Home Health Picks Up Steam

Mergers-and-acquisition activity continues to boom in the hospice space this year. Deal volume may exceed the record number from the prior two years. As many as 61% of the 203 hospice care professionals who responded to a recent Hospice News Outlook Survey and Report said they anticipate that hospice M&A activity will increase during 2022. […]