LHC Group and Almost Family agreed to a merger that would create the second-largest home health provider in the country with 781 locations in 36 states, more than 31,000 employees and revenue of $1.8 billion, Modern Healthcare reported.
The deal highlights the growing stature of the post-acute and home health space as many organizations aim to capitalize on population health and payment initiatives that emphasize reducing unnecessary care, shift care to lower-cost care delivery settings, improving patient satisfaction and outcomes.
The home health sector is also growing at a rapid pace, projected to add 425,600 positions from 2016 to 2026, an increase of 46.7 percent, according to the Bureau of Labor Statistics. Over that 10-year span, home health and personal care aides will expand by 1.2 million more jobs, making up a significant share of all new job creation. …
At the same time, Modern Healthcare reported, many health systems are shedding their home health businesses and forming joint ventures with national for-profit operators.
Catholic-sponsored Christus Health of Irving, Texas, formed a joint venture in early August with LHC Group, which will manage its 21 home health, hospice and long-term hospitals. In June, Dallas-based Baylor, Scott & White of Dallas formed a new home health group through a joint venture with AccentCare. Tenet Healthcare sold its home health and hospice business to Amedisys.
"Systems are looking to coordinate the post-acute space so they can compete in that market in addition to opening ambulatory surgery centers and other points of care to control costs," said Kenya Woodruff, chair of the healthcare practice group at the law firm Haynes and Boone, LLP.
Excerpted from Modern Healthcare. To read the full article, click here.