Gentiva – the company comprised of the hospice and personal home care assets of what was formerly Kindred at Home – has agreed to acquire ProMedica’s Heartland home health and hospice assets for $710 million.
Led by the former CEO of Kindred, David Causby, Gentiva is backed by both Humana Inc. (NYSE: HUM) and the private equity firm Clayton, Dubilier & Rice (CD&R). Specifically, CD&R owns 60% of the business, with Humana holding onto a 40% stake post-divestiture.
CD&R paid $2.8 billion for the ownership stake last year.
Though Gentiva’s network is mainly hospice- and personal care-focused, the company will be the new owner of 15 Medicare-certified home health agencies after the ProMedica deal is completed, a Gentiva spokesperson told Home Health Care News in an email.
“Beyond the clear cultural fit, Gentiva made the decision to acquire Heartland because, as one company, we believe we will be even better positioned to expand access to our industry-leading care offering across more areas around the country and capitalize on the new opportunities within our evolving space,” the Gentiva spokesperson said. “Gentiva will gain the additional scale needed to expand into new markets, bolster our palliative capabilities, accelerate innovation, and continue adding to our clinical care team, all of which will help provide even more patients with our high-quality care.
After the deal is finalized, the Atlanta-based Gentiva will have boosted its location count from 380 to 500, and its patient census from about 25,000 to 34,000, Causby told Bloomberg. The deal is expected to close in the second quarter of this year.
“This transaction is an exciting development for patients and their families that will enable us to extend our best-in-class caregiver recruitment and retention programs and provide high-quality care to more patients in more areas throughout the country,” Causby, Gentiva’s president and CEO, said in a press statement. “Gentiva consistently achieves industry-leading quality of care and patient family satisfaction scores by investing in our people and caregiving capabilities.”
The Toledo, Ohio-based ProMedica is a nonprofit health system. In addition to its home-based care and hospice capabilities, it has 12 hospitals, more than 2,500 physicians, a health plan, assisted living facilities, skilled nursing centers, memory care communities and outpatient rehab clinics.
“Heartland is a high-quality hospice and home care provider that shares our values on compliance and putting patients first, and my colleagues and I look forward to growing our number of caregivers so we can expand access to the highest-quality care for more seniors,” Causby continued.
Gentiva has reportedly received debt financing from Goldman Sachs – among others – to help fund the deal.
“As part of the Gentiva family, the Heartland agencies will be well-positioned to continue providing compassionate care that prioritizes patient comfort, dignity and well-being throughout the care continuum,” Arturo Polizzi, president and CEO of ProMedica, said in a press statement. “For ProMedica, this transaction is an important step toward simplifying our organizational structure and ensuring our long-term financial strength. We are pleased to be able to transition these agencies to a trusted industry leader, enabling ProMedica to commit more time, energy, and resources to our core operations.”
Companies featured in this article:
