by Kristin Rowan | Jan 9, 2025 | Breaking News, Regulatory
Just as we were setting the article on UnitedHealth Group and Amedisys for publication, we received the following breaking news story:
VitalCaring Divestment Agreement Cancelled
VitalCaring entered into the agreement on June 28, 2024, just after the merger announcement and initial pushback from the Department of Justice. The DOJ approved the divestiture, despite some misgivings about the quality of care. VitalCaring said at the time that it believed the merger and the divestment were in the “best interest of patients and stakeholders.”
VitalCaring has been under its own scrutiny since 2022 when Encompass Health and its home health and hospice arm, Enhabit, Inc. accused VitalCaring CEO April Anthony of using unethical practices to establish the company. Anthony is the founder of Encompass Home Health & Hospice, the previous owner and CEO of Liberty Health Services, and founder and former CEO of Homecare Homebase.
She Who Shall Not be Named
Encompass Health filed an injunction against April Anthony, and her partners Vistria Group and Nautic Partners in 2021 for violation of the terms of her employment agreement, non-competition agreement, non-solicitation, and misappropriation of trade secrets.
Anthony and her partners purchased a small home health agency in Louisiana and started plan for its growth while Anthony was still CEO of Encompass. Additionally, Anthony recruited employees of Encompass to work at her new venture using a fake recruiter to cover her tracks. Anthony used fake names, spouses’ phones, and her personal laptop to remain undetected during this time. Anthony asked her partners and recruits to refer to her as Voldemort.
In August of 2022, a judge called the actions of Anthony and her partners “willful misconduct” and agreed with almost all of Encompass’s allegations. The judge found that Anthony was in violation of her non-compete agreement and that she was actively running a direct competitor while still serving as CEO of Encompass. The judge stated, “These are not the actions of a person complying with her contractual obligations.” Although Encompass’s injunction asked to have the non-compete agreement extended, the judge only enforced the existing non-compete agreement, and found that that Anthony had violated the covenant.
The Delaware Court of Chancery, in December of 2024, agreed with the earlier findings of the court and found that Anthony, two former senior officers of Encompass, and the investment companies were complicit in their miconduct and that VitalCaring was a result of their deceit.
The court awarded an upfront payment for mitigation damages of $1.62 million dollars plus attorneys’ fees. The court also imposed a trust entitling Encompass Health and Enhabit to 43% of al of VitalCaring Group’s future profits, paid quarterly as well as 43% of proceeds if and when the company is sold.
Depending on the source, each of the companies involved in the divestiture agreement are claiming credit for filing for divorce.
- An equity analyst for UnitedHealth Group said, “UNH has abandoned VitalCaring as a divestiture buyer after the Delaware Chancery decision against VitalCaring’s executives.”
- An article from a hospice website stated, “Amedisys has halted the divestiture of some of its home health and hospice locations to Texas-based VitalCaring.
- A stock market website reported “VitalCaring Group cancelled the acquisition of certain home health care centers from UnitedHealth Group, Inc.”
Regardless of who filed for divorce, UnitedHealth Group and Amedisys are courting new partners to acquire the home health centers that need to be divested before their marriage can be blessed by the DOJ.
Kristin Rowan has been working at The Rowan Report since 2008. She is the owner and Editor-in-chief of The Rowan Report, the industry’s most trusted source for care at home news .She also has a master’s degree in business administration and marketing and runs Girard Marketing Group, a multi-faceted boutique marketing firm specializing in content creation, social media management, and event marketing. Connect with Kristin directly kristin@girardmarketinggroup.com or www.girardmarketinggroup.com
©2025 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com
by Kristin Rowan | Jan 9, 2025 | M&A, Regulatory
UHG and Amedisys Waive Termination
The UnitedHealth Group and Amedisys merger has been an ongoing story since the initial merger agreement was signed in June of 2023. The proposed merger came under scrutiny by the Federal Trade Commission (FTC) and the Department of Justice (DOJ). UnitedHealth Group and Amedisys are competitors in the home healthcare market and the merger would hurt patients.
“UnitedHealth’s plan to extinguish Amedisys as a competitor is the result of an intentional, sustained strategy of acquiring, rather than beating, competition.”
Late in 2024, the DOJ filed a lawsuit against the merger, claiming that both companies have acknowledged that their competition helps keep them honest and drive quality both in patient and employee care. The DOJ noted that the acquisition would be presumptively illegal in multiple markets. UHG, Amedisys, and Optum proposed selling off some of its care centers to address the concerns about competition.
Under the initial merger agreement, UHG would pay $3.3 billion to acquire Amedisys, which would remain as a subsidiary of UHG. That agreement was set to be finalized on December 27, 2024. There has been no decision made on the DOJ lawsuit, so the merger could not be completed. UHG and Amedisys have mutually agreed to extend the merger and added a break fee of $275 million.
Indefinite Merger Extension Through 2025
The new agreement has an indefinite ending. According to the wording, the merger agreement will now expire either on December 31, 2025 or 10 days after a final court decision in the lawsuit, whichever comes first.
According to the new filing with the SEC, UnitedHealth and Amedisys will be divesting assets to secure the merger and satisfy the DOJ. If not, they will incur a break fee of up to $325 million. Both companies have an agreement with VitalCaring Group to acquire the necessary assets.
If…The Trump administration is less stringent in antitrust matters, as expected.
The lawsuits currently at the U.S. District Court and five states will likely fail.
If…the U.S. District Court for the District of Maryland either decides to block the merger permanently or does not reach a final order by the end of the year…
The merger agreement will expire.
If…UnitedHealth Group, Optum, and/or Amedisys fails to divest holdings…
The merger agreement will not satisfy the antitrust regulations and the failing party will pay hundreds of millions in damages, and the merger agreement will end.
This is an ongoing story and we will continue to report on updates as they occur. See our accompanying BREAKING NEWS story.
Kristin Rowan has been working at Healthcare at Home: The Rowan Report since 2008. She has a master’s degree in business administration and marketing and runs Girard Marketing Group, a multi-faceted boutique marketing firm specializing in event planning, sales, and marketing strategy. She has recently taken on the role of Editor of The Rowan Report and will add her voice to current Home Care topics as well as marketing tips for home care agencies. Connect with Kristin directly kristin@girardmarketinggroup.com or www.girardmarketinggroup.com
©2025 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com
by Rowan Report | Dec 12, 2024 | M&A, Partner News
Creach Family Holdings Announces Acquisition of HealthRev Partners
Creach Family Holdings enhances its healthcare offerings by acquiring HealthRev Partners, strengthening its position in the home health and hospice sectors.
JENSEN BEACH, FL, UNITED STATES, December 4, 2024. Creach Family Holdings, a privately held investment firm focused on healthcare technology and tech-enabled services, is excited to announce the acquisition of HealthRev Partners, a leading provider of revenue cycle management (RCM) services for the home health and hospice market. This acquisition complements Creach Family Holdings’ portfolio, which includes Careficient, a top electronic medical record (EMR) provider for home health and hospice agencies.
By combining HealthRev Partners’ RCM expertise with Careficient’s innovative EMR platform, Creach Family Holdings aims to offer an integrated suite of solutions that streamline operations, improve revenue cycles, and enhance patient care for home health and hospice providers.
Creating a Seamless Solution for Home Health and Hospice Providers
HealthRev Partners is recognized for its technology-driven solutions that help home health and hospice organizations manage billing, coding, and revenue cycle processes efficiently. This acquisition strengthens Creach Family Holdings’ ability to offer a comprehensive solution to the home health and hospice market, addressing challenges such as regulatory compliance and operational efficiency.
The acquisition of HealthRev Partners is a strategic move that expands our ability to serve the home health and hospice sectors, combining their RCM expertise with Careficient’s EMR solution.
CEO, Careficient
Creating a Seamless Solution for Home Health and Hospice Providers
HealthRev Partners is recognized for its technology-driven solutions that help home health and hospice organizations manage billing, coding, and revenue cycle processes efficiently. This acquisition strengthens Creach Family Holdings’ ability to offer a comprehensive solution to the home health and hospice market, addressing challenges such as regulatory compliance and operational efficiency.
Gene Creach, CEO of Careficient and Senior Manager at Creach Family Holdings, commented, “The acquisition of HealthRev Partners significantly expands our ability to serve the home health and hospice sectors. By combining their revenue cycle management expertise with Careficient’s comprehensive EMR solution, we provide a seamless platform that reduces administrative burdens, improves cash flow, and allows providers to focus on delivering high-quality patient care. This acquisition reflects our commitment to advancing healthcare technology and improving patient outcomes.”
Strengthening Capabilities in the Home Health and Hospice Market
HealthRev Partners’ RCM services are tailored to the needs of the home health and hospice sectors, where managing reimbursements and ensuring compliance are critical. Through this acquisition, HealthRev Partners will benefit from Creach Family Holdings’ operational expertise. The partnership with Careficient allows both organizations to offer the most integrated solution suite for the home health and hospice markets.
Mike Greenlee, CEO of HealthRev Partners, said, “We are thrilled to join Creach Family Holdings. For years, HealthRev Partners has been focused on helping home health and hospice providers optimize their revenue cycles. Now, through this partnership, we can expand our service offerings and technology solutions to create more opportunities for improved client outcomes.”
Expanding Creach Family Holdings’ Healthcare Vision
The acquisition strengthens Creach Family Holdings’ position as a leader in healthcare services and technology, particularly in the home health and hospice markets. By combining the strengths of HealthRev Partners and Careficient, Creach Family Holdings provides healthcare organizations with a data-driven solution that reduces costs, accelerates reimbursements, and improves care delivery.
Bill Creach, Senior Manager for Creach Family Holdings, added, “This acquisition is a critical step in our strategy to become a dominant force in healthcare technology. By combining HealthRev’s RCM expertise with Careficient’s EMR platform, we’re offering healthcare providers the tools they need to succeed in an increasingly complex industry.”
About Creach Family Holdings
Creach Family Holdings is a privately held investment firm focused on acquiring and growing innovative healthcare companies. The firm is dedicated to transforming the healthcare industry by investing in companies that create long-term value and drive positive change.
HealthRev Partners provides technology-enabled RCM solutions for the home health and hospice sectors. Their solutions help organizations optimize billing and revenue cycle processes while ensuring regulatory compliance.
Careficient is a next-generation provider of AI-enabled EMR solutions for home health and hospice agencies. Its platform integrates clinical documentation, scheduling, billing, and patient management into a seamless system designed to enhance care delivery and efficiency.
by Tim Rowan | Nov 8, 2024 | Admin, Editorial, M&A, Regulatory
by Tim Rowan, Editor Emeritus
Hospitals Divesting Home Health Departments
Is this an early omen of two related trends? A number of hospitals are divesting their home health departments, while large health insurance companies are swallowing up large home health companies.
Beckers reported on October 23 that Providence Health plans to spin off its home-health services along with hospice and palliative care into a new joint venture that will be managed by Compassus, a for-profit, Tennessee-based provider of home care services in 30 states. The move will affect about 700 patients receiving care every day in Spokane County.
The Catholic not-for-profit health system’s agreement with Compassus will be known as “Providence at Home with Compassus.”
After a regulatory review, the deal is expected to close in early 2025. Providence and Compassus will each own a 50% stake. The new venture is part of a strategy to expand and improve home-based services, but also to cut costs. Providence, which operates Sacred Heart Medical Center and Holy Family Hospital in Spokane, declined to disclose the financial details of the joint venture.
A news release that surfaced on October 25 said that UnitedHealth Group representatives are set to meet with Justice Department officials to make the case for the insurance giant’s acquisition of Amedisys to be approved. The meeting is often the last step before the Justice Department decides whether to file a lawsuit challenging an acquisition, according to the news outlet.
Amedisys operates more than 500 facilities in 37 states. Shareholders approved the acquisition in September 2023, but the deal has been held up by regulatory scrutiny. Justice Department officials are concerned the deal could increase prices for home health, according to Bloomberg.
If approved, this would be phase two of UnitedHealth’s historic foray into our sector. United acquired LHC Group, a home health provider with more than 900 locations, in February 2023. If UnitedHealth’s acquisition of Amedisys is approved, the company would own 10% of the entire home health market, with significant overlap between Amedisys and LHC acquisitions in some Southern states, according to Bloomberg.
Regulators could approve the deal with some changes to address competition concerns, Bloomberg reported. In August, Amedisys and UnitedHealth agreed to sell a reported 100 home health and hospice care centers to VitalCaring Group if the merger is approved.
UnitedHealth is not the only insurance company interested in owning home health agencies and hospices:
- Humana acquired Kindred, one of the nation’s largest HHAs, and rebranded it CenterWell Home Health. Today it operates more than 360 home health locations in 38 states. In 2023, the company said it would expand into in-home primary care in several states.
- In 2023, CVS Health acquired home health provider Signify Health for $8 billion. The company won a bidding war for Signify over UnitedHealth Group, Amazon and Option Care Health. Signify Health has more than 10,000 clinicians.
- Evernorth, Cigna’s health services arm, offers home health services with a staff of more than 430. In January, Cigna CEO David Cordani said home health was one area where it would focus on future acquisitions.
- In 2021, Centene sold its majority stake in home-based primary care provider U.S. Medical Management. Centene retained a minority stake in the company.
Our healthcare sector is changing as the entire U.S. healthcare scene changes. Next week we will delve further into the ramifications of the CMS 2025 final rule and of course the political events of this week.
Tim Rowan is a 30-year home care technology consultant who co-founded and served as Editor and principal writer of this publication for 25 years. He continues to occasionally contribute news and analysis articles under The Rowan Report’s new ownership. He also continues to work part-time as a Home Care recruiting and retention consultant. More information: RowanResources.com
Tim@RowanResources.com
©2024 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in Healthcare at Home: The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com
by Kristin Rowan | Oct 18, 2024 | M&A, Vendor Watch
The Future of HHAeXchange
Earlier this month, we announced that HHAeXchange acquired Sandata. This announcement came not long after the announcements that they had acquired Cashé and Generations. Last week, The Rowan Report sat down with Stephen Vaccaro, President of HHAeXchange to talk about this latest acquisition and what it means for HHAeXchange going forward.
Stephen Vaccaro: On the Record
The Rowan Report:
Stephen, thank you for meeting with me today. I’m sure you are quite busy with this latest news. What can you tell us about the acquisition of Sandata?
Stephen Vaccaro:
We’re very excited about all of the changes we’ve made this year. We were excited about Cashé and Generations, and we’re excited about Sandata. Sandata is larger, in scale, than the other two. They operate at the state level, in managed care, and with providers.
RR:
How will this acquisition impact what HHAeXchange is doing?
Stephen:
HHAeXchange recognized the need for more standardization in the industry. It’s been so fragmented for so long. We need better data and better insights to deliver better care. The combined footprint of HHAeXchange and Sandata puts us in the position to deliver on that.
RR:
What immediate changes should we expect to see?
Stephen:
Sandata as a brand will continue to exist, just under the HHAeXchange brand now. We have no plan to make any changes to the technology or the teams. We’ve spoken to the state and managed care clients and they are excited about this as well. They will continue working with the teams they know and the technology they know.
RR:
Do you anticipate more changes down the road?
Stephen:
Over the next six to twelve months, we will evaluate the technology to assess where it can be put to best use. We expect to see some thoughtful consolidations that are well thought out and communicated to all. We have no plan to get rid of Sandata or make anyone leave the platform. As we are consolidating these technologies, we’re taking the expertise of each of these great organizations into one integrated platform. We think what you’ll see is the new standard for homecare management, driving innovation and efficiency across the industry. This, in turn, helps deliver better care in the home.
RR:
I spoke with Paul Joiner, HHAeXchange CEO, after the acquisition of Cashé and Generations. At that time, he told me that those acquisitions were part of a larger strategy that comes with a bigger reveal. Now that the big reveal has happened, what can you tell us about the future of HHAeXchange?
Stephen:
We are focusing on operational efficiency so caregivers can focus on care and better outcomes. The message we want to share is that we are ensuring that there’s flexibility, inclusiveness, scalability within homecare management solutions to any stakeholder. We will never be the single solution for everyone, but we aim to be the best solution to adapt to regulatory changes and emerging trends and make sure that we’re building trust and confidence and demonstrate the commitment that we’re making to ensure best in class software. We believe the path we’re on is transformative for the industry.
RR:
It sounds like there may be more announcements in the future. I’m excited to see what you do next. Thank you for talking with The Rowan Report.
Kristin Rowan has been working at Healthcare at Home: The Rowan Report since 2008. She has a master’s degree in business administration and marketing and runs Girard Marketing Group, a multi-faceted boutique marketing firm specializing in event planning, sales, and marketing strategy. She has recently taken on the role of Editor of The Rowan Report and will add her voice to current Home Care topics as well as marketing tips for home care agencies. Connect with Kristin directly kristin@girardmarketinggroup.com or www.girardmarketinggroup.com
©2024 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in Healthcare at Home: The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com
by Rowan Report | Oct 3, 2024 | Breaking News, Vendor Watch
HHAeXchange Acquires Sandata
Contact: Michelle Rand
Alloy on behalf of HHAeXchange
855-300-8209
hhaexchange@alloycrew.com
HHAeXchange Acquires Sandata Technologies, Enhancing Ability to Serve Homecare Providers, Payers, and Caregivers Nationwide
Best positioned to deliver transformative technology that accelerates the industry’s evolution and its ability to improve health outcomes
NEW YORK and PORT WASHINGTON, N.Y., Oct. 03, 2024 — HHAeXchange, a leader in homecare management solutions for providers, caregivers, managed care organizations (MCOs), and state Medicaid programs, today announced that it has acquired Sandata Technologies. With four decades of experience, Sandata provides solutions that serve the homecare industry. Together, HHAeXchange and Sandata are well-positioned to meet the growing need for home and community-based services (HCBS), with demand for personal care aides expected to rise by 43% between 2020 and 2035.
“We are excited to join forces with Sandata, who shares our commitment to enabling homecare stakeholders to deliver the highest quality of care to their members,” said Paul Joiner, Chief Executive Officer of HHAeXchange. “This acquisition further demonstrates our commitment to investing in and raising the bar for our customers, while leading the transformation of an industry that deserves best-in-class technology and a superior experience. We will leverage our expanded platform by innovating with states and health plans to enable providers and better health outcomes. By doing so, we will further empower the devoted caregivers who are at the heart of our industry.”
“Now is the time to harness the power of advanced technology to truly support providers and payers with their billing needs and compliance requirements – and ultimately, deliver on the promise of our industry.”
Chief Executive Officer, HHAeXchange
“For decades, Sandata has been dedicated to ensuring providers and payers can seamlessly work together to increase compliance, improve efficiency, and deliver high-quality care,” said Sandata’s Chief Executive Officer, Emmet O’Gara. “Joining HHAeXchange strengthens our commitment and represents an exciting new chapter for Sandata, positioning the new combined company for continued growth and innovation by enhancing the value we can deliver to our customers.”
HHAeXchange’s transaction with Sandata builds on the company’s recent strategic acquisitions of Cashé and Generations. These investments collectively support HHAeXchange’s ongoing advancement of its mission to enable caregivers, families, providers, and payers to deliver the best care in the home. Paul Joiner, HHAeXchange’s CEO, will lead the combined business moving forward.
Financial terms of the transaction were not disclosed.
Sandata, now part of HHAeXchange, is the pioneering force in home and community-based care, consistently leading the way with innovative technology solutions. As a trusted leader, Sandata is deeply committed to addressing critical challenges in the sector by expertly connecting the homecare ecosystem. This commitment creates a positive and lasting impact on payers, providers, caregivers, and those who receive care.
Sandata’s industry-leading software, systems, and services optimize billing and claims processing for payers, streamline administrative processes for providers, and facilitate better experiences for caregivers and those who receive care. Sandata’s vision and commitment to transforming the industry continue to shape the future of care at home and in our communities, ensuring better outcomes for all involved.
Founded in 2008, HHAeXchange is the leading technology platform for homecare and self-direction program management. Developed specifically for Medicaid home and community-based services (HCBS), HHAeXchange connects state agencies, managed care organizations, providers, and caregivers through its intuitive web-based platform, enabling unparalleled communication, transparency, efficiency, and compliance. For more information, visit hhaexchange.com or follow the company on Twitter, LinkedIn and Facebook.
This information originally appeared on the HHAeXchange website and it reprinted with permission.
by Rowan Report | Aug 1, 2024 | Artificial Intelligence, M&A, Partner News
Acquisition Creates Large AI Software Provider
by Tanay Tandon, CEO, Commure
Today I’m excited to share that Commure is signing to acquire Augmedix (NASDAQ: AUGX) and take the company private. Combined, we believe we’re creating one of the largest, most comprehensive, and fastest-growing artificial intelligence software suites in healthcare.
Augmedix is a pioneer in the space of Ambient AI-powered medical scribing, with technology and personnel serving over 20 major health systems and hundreds of sites of care. Together, we believe we can dramatically boost the productivity of every physician in America using language models that transcribe appointments, autonomously code them, and supercharge back-office operations for billing teams.
The companies together are on track to power over 3 million physician appointments using artificial intelligence, ambient scribing, and revenue cycle automation this year. Commure Scribe, and Augmedix Go on average save a physician 2 hours of documentation time a day, reducing documentation time by more than 80%, and help generate billions of dollars in productivity savings for providers across the country.
(Left to Right): Tanay Tandon, Ian Shakil, Hemant Taneja, and Manny Krakaris
Augmedix and Commure both partner closely with the country’s premiere hospital systems. Augmedix’s progress in deploying LLM-powered technology within those systems has been genuinely amazing.
Commure today processes billions of dollars worth of healthcare payments, and has the fastest growing Ambient AI scribe + documentation tool deployed within hundreds of health systems and private practices. Our technology suite helps power over 250,000 providers nationally. And with the Augmedix acquisition that number will grow even further.
As I’ve gotten to know Ian and Manny – founder and CEO respectively at Augmedix – it’s become clear they share a common passion with Commure for deploying artificial intelligence to supercharge provider operations and boost the productivity of the US economy.
In line with the health assurance vision, we believe this combination further unlocks an ecosystem of companies that can collaborate to transform healthcare. In partnership with Augmedix, Commure is poised to become the single, AI-powered interface for providers, accelerating innovation and our shared goal of creating a more proactive, accessible, and affordable system of care.
In the coming months, we hope to announce much more about how the combined company’s product suites will help transform provider operations at all the systems we partner with.
Commure, Inc. is connecting disparate datasets, surfacing meaningful insights, accelerating performance through a suite of intuitive applications, and enabling seamless innovation across the healthcare industry. Commure’s mission is to empower every person in the health ecosystem to deliver exceptional care. Commure’s original applications include solutions to improve staff safety, enhance clinical workflow, and bolster revenue operations. Currently, the company enables more than 160,000 clinicians and staff across more than 500 care facilities to advance care through collaboration. With Athelas in the portfolio, Commure will add thousands of clinicians and over 100,000 patients to its national network. Combined, Commure and Athelas is backed by General Catalyst, Sequoia, Lux, Human Capital, 8VC, Greenoaks Capital and Elad Gil. Learn more at commure.com.
by Rowan Report | Jul 26, 2024 | Partner News
HHAeXchange Acquires Generations Homecare System, Enhancing its Software Platform for Homecare Stakeholders
Through the acquisition, HHAeXchange will expand footprint into new states and gain talent with deep homecare technology experience
NEW YORK, July 8, 2024 – HHAeXchange, a leader in homecare management solutions for providers, managed care organizations (MCOs), state Medicaid agencies, and fiscal intermediaries, today announced its acquisition of Generations Homecare System. Generations provides an all-in-one homecare agency management software solution that gives providers the ability to connect care teams, simplify daily tasks, and maintain compliance. This acquisition brings together two companies sharing a common vision and values, aimed at driving innovation and excellence in homecare.
The homecare industry is poised for tremendous additional growth, with demand for personal care aides expected to rise by 43% between 2020 and 2035. Industry stakeholders need a software platform that can rapidly evolve to meet the requirements and growing needs of providers, caregivers, and payers – particularly when it comes to compliance and usability.
“As HHAeXchange remains focused on building a better product that supports our dynamic industry, we’re thrilled to combine forces with the Generations team, which is known for its homecare technology expertise,” said Paul Joiner, HHAeXchange’s Chief Executive Officer. “This deeper talent bench, along with an expanded geographic footprint, will move us closer to fulfilling our mission of enabling caregivers, families, providers, and payers to deliver the best care in the home.”
Building on HHAeXchange’s recent acquisition of Cashé Software, a leading Minnesota-based solution for homecare operations and billing, the Generations acquisition will enable HHAeXchange to further expand its footprint into new states and add talent with deep expertise in homecare technology – ultimately driving more value for clients, partners, and others across the industry.
“At HHAeXchange, we’re dedicated to revolutionizing homecare by empowering providers with the best tools and solutions. Our recent acquisitions of Cashé Software and Generations Homecare System represent a significant milestone in this journey, underscoring our commitment to enhancing the care experience for caregivers and members nationwide. With this newly fortified combination of expertise and values, we’re strategically positioned to drive meaningful change in the industry and make a lasting impact on the lives we serve,” Joiner added.
Generations has been dedicated to creating a quality homecare software service for the growing homecare industry since it was founded in 2002. Committed to the promise of providing exceptional technology, Generations is used by over 700 customers in 48 states across the U.S.
Lisa Ferden, Generations Co-Founder and COO, and Lance Ferden, Generations Co-Founder and CTO, will work in advisory roles over the coming months to ensure a smooth transition.
“Generations was built on the foundation of providing exceptional technology, always keeping usability and intuitiveness at the forefront of our homecare software service,” said Lisa Ferden, COO and co-founder of Generations Homecare System. “But what has always set us apart is our commitment to providing an unparalleled customer experience. From our onboarding process to our help system and our customer success team we care deeply about doing our best with every customer interaction. We are thrilled to combine this passion with HHAeXchange’s strengths and push the homecare industry forward.”
Founded in 2008, HHAeXchange is the leading technology platform for homecare and self-direction program management. Developed specifically for Medicaid home and community-based services (HCBS), HHAeXchange connects state agencies, managed care organizations, providers, and caregivers through its intuitive web-based platform, enabling unparalleled communication, transparency, efficiency, and compliance. For more information, visit hhaexchange.com or follow the company on Twitter, LinkedIn and Facebook.
by Rowan Report | May 10, 2024 | M&A
Bon Secours Mercy Health to Outsource Home Health and Hospice to Compassus
Bon Secours Mercy Health (BSMH), the fifth-largest Catholic health system in the U.S., and Compassus, a leading national provider of home-based health care services, announced on May 2 that they have signed an agreement to form a 50/50 joint venture partnership for BSMH home care and hospice. Under the agreement, Bon Secours will outsource to Compassus, who will manage operations for 10 home health agencies and 11 hospice operations spanning five states.
Under the agreement, BSMH will maintain ownership of its existing hospice house real estate assets in specific locations while Compassus will manage the operations. BSMH will work closely with Compassus to support the home health and hospice associates transferring to employment with Compassus. Under the joint venture, the team will continue to provide spiritually grounded care and will operate in accordance with Ethical and Religious Directives.
The agreement is subject to state and federal regulatory review and final diligence; however, the agreement formalizes the intent of both parties to move forward with the transition and integration.
About Compassus
Compassus provides home-based services including home health, infusion therapy, palliative and hospice care. The company’s more than 6,000 team members serve more than 100,000 patients annually across more than 250 locations in 29 states. This is not the company’s first joint venture. In 2020, Compassus became managing partner of Ascension at Home, a joint venture between Ascension and Compassus.
About Bon Secours Mercy Health
Bon Secours Mercy Health (BSMH) is one of the 20 largest health systems in the United States and the fifth-largest Catholic health system in the country. The ministry’s quality
, compassionate care is provided by more than 60,000 associates serving communities in Florida, Kentucky, Maryland, New York, Ohio, South Carolina and Virginia, as well as throughout Ireland.
Bon Secours Mercy Health provides care for patients more than 11 million times annually through its network of more than 1,200 care sites, which includes 48 hospitals. In 2022, BSMH provided more than $600 million dollars in community investments across five states, ensuring that cost is not a barrier to health care for patients in need.
In addition to charity care, BSMH invests in programs that address chronic illness, affordable housing, access to healthy food, education and wellness programs, transportation, workforce development and other social determinants of health. The Mission of Bon Secours Mercy Health is to extend the compassionate ministry of Jesus by improving the health and well-being of its communities and bring good help to those in need, especially people who are poor, dying and underserved. https://bsmhealth.org/
©2024 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in Healthcare at Home: The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com
by Rowan Report | Oct 4, 2023 | Admin, M&A
by Greg Schriber
In the dynamic landscapes of home health, home care, and hospice services, these industries are experiencing transformative trends, marked by evolving market changes and a surge in demand. Understanding these trends and strategically positioning one’s business for a lucrative sale is paramount. This article provides a detailed guide on understanding the current market landscape and optimizing business value for a successful sale.
Transformative Trends
The industry is witnessing a substantial increase in demand for home-based care services, primarily driven by an aging population and a growing preference for aging in place. This trend has been further propelled by the COVID-19 pandemic, as more families are opting for home care to mitigate the exposure risks associated with institutional settings. Additionally, the advent of technological advancements such as telehealth and health informatics is revolutionizing the way services are delivered, enhancing patient outcomes and operational efficiency. Embracing these innovative solutions is imperative to maintain competitiveness and address the changing needs of clients. The industry is also navigating through shifts in regulatory frameworks, emphasizing quality of care through value-based care models and patient satisfaction. Adherence to new regulations and standards is crucial to sustain the business and avoid penalties. Furthermore, the market is undergoing consolidation, with larger entities acquiring smaller providers to diversify their service offerings and extend their geographic reach. This trend poses both challenges and opportunities for business owners contemplating a sale.
Strategic Positioning for Sale
To position a business attractively for sale, optimizing operational efficiency is crucial. Streamlining operations and minimizing overhead costs not only enhance profitability but also make the business more appealing to potential buyers. Implementing industry best practices and leveraging technology can significantly elevate operational efficiency and service quality. Diversifying service offerings is another strategic move, as it can expand the customer base and open up new revenue streams. Providing a range of specialized and complementary services positions the business as a comprehensive solution, attracting acquirers. Building and maintaining a strong brand reputation through exemplary services, customer satisfaction, and community engagement is also vital. A reputable brand can draw in strategic buyers seeking market leadership. Investing in workforce development is equally important, as a skilled and stable workforce is a valuable asset that can influence business valuation positively. Maintaining financial health and accurate financial records is critical, as it demonstrates the business’s viability and can facilitate the due diligence process during the sale.
Managing the Sale Process
Seeking professional advice from industry experts, financial advisors, and legal counsel can offer invaluable insights and guidance throughout the sale process, aiding in accurate business valuation, negotiation of favorable terms, and navigation of legal intricacies. Negotiations require a strategic approach – understanding the buyer’s motivations, being transparent about expectations, and being willing to compromise can lead to a mutually beneficial agreement. Identifying a buyer whose vision aligns with that of the seller is essential to ensuring the continuity and growth of the business post-sale. Whether the buyer is a strategic entity looking to expand or a financial entity seeking investment opportunities, finding the right fit is crucial. Additionally, being well-prepared for the due diligence process can expedite the sale and reduce the risk of deal fallout. This includes organizing all necessary documents and addressing any potential issues beforehand. Developing a clear transition plan that involves open communication and support is essential to ensuring a successful handover and employee retention post-sale.
Positioning a healthcare business for sale is a multifaceted endeavor, involving operational optimization, brand enhancement, and meticulous strategic planning. By staying abreast of market trends, adopting best practices, and effectively navigating the sale process, business owners can maximize their business value and achieve a successful exit in this rapidly evolving industry. The journey extends beyond the sale; it’s about creating a legacy and ensuring the continued growth and service to the community under new ownership. By being proactive, strategic, and thoughtful, business owners can significantly impact the future of home-based care and improve countless lives.
Greg Schriber is the M&A Senior Advisor for American Healthcare Capital. To learn more about Transformative Trends, Greg can be reached at greg@ahcteam.com
©2023 by Rowan Consulting Associates, Inc., Colorado Springs, CO. All rights reserved. This article originally appeared in Home Care Technology: The Rowan Report. homecaretechreport.com One copy may be printed for personal use; further reproduction by permission only. editor@homecaretechreport.com
