Transactions: Encompass Health Inks New JV; PHMC to Affiliate with VNA of Greater Philadelphia

Encompass Health, Saint Alphonsus announce joint venture

Encompass Health Corp. (NYSE: EHC) and Saint Alphonsus Health System are forming a new joint venture in Idaho. The transaction closed on Jan. 1.

The new JV includes Saint Alphonsus home health and hospice locations in Boise, Idaho. It also includes the Encompass Health home health and hospice locations in Boise and Nampa, also located in the Gem State.

“We look forward to working collaboratively with Saint Alphonsus Health System to serve together as a compassionate and transformative healing presence within our communities,” Barb Jacobsmeyer, president and CEO of Encompass Health’s home health and hospice business, said in a statement. “This joint venture combines the expertise and resources of Encompass Health, one of the nation’s largest providers of home health and hospice services, with the trusted health care provider Saint Alphonsus, with more than four decades of home health service in Idaho.”

The overall Encompass Health footprint includes 145 hospitals, 249 home health locations and 95 hospice locations in 42 states and Puerto Rico.

The Birmingham, Alabama-based company is currently working to separate the home health and hospice segment into its own publicly traded enterprise, though some investors have urged the organization to instead consider a third-party merger.

The recently announced JV complements a joint venture between Encompass Health and the nonprofit Saint Alphonsus established in 2019.

“We have an existing joint venture with Encompass Health for in-patient rehabilitation services, and we are excited to establish a new joint venture with Encompass Health as a valued home health and hospice provider in Idaho, with a proven ability to provide high-quality, cost-effective care while avoiding unnecessary hospital readmissions,” Odette Bolano, president and CEO of Saint Alphonsus, noted.

In-home care organizations combining operations

Public Health Management Corporation (PHMC) has announced its intention to affiliate with Visiting Nurse Association of Greater Philadelphia, the oldest and largest nonprofit home health, palliative and hospice provider in the region.

As part of this transaction, the nonprofit PHMC will acquire Philadelphia Home Care (PHC), the parent company of VNA of Greater Philadelphia. It will also take over Visiting Nurse Society (VNS), VNA’s supporting foundation.

PHC, VNA and VNS will become PHMC subsidiaries pending all final legal and regulatory approvals.

“PHMC is committed to VNA’s mission and longstanding legacy of delivering comprehensive home health, palliative and end-of-life care of the highest quality to individuals in our region,” Richard J. Cohen, president and CEO of PHMC, said in a press release. “We have a strong team in place to ensure a seamless transition as we align VNA’s services to existing PHMC programs and enrich the continuum of care for our combined organization.”

Moving forward, PHMC will integrate VNA into its family of programs and subsidiaries.

The relationship “will align VNA within PHMC’s Integrated Health Services portfolio” and provide “programmatic integration and referral opportunities between the organizations,” according to the press release. That includes PHMC’s network of six federally qualified health centers and its medical respite programming for individuals experiencing homelessness.

With more than 3,000 employees, PHMC serves hundreds of thousands of individuals each year.

“VNA is excited to be joining the PHMC enterprise,” Mary Zagajeski, interim CEO of VNA, said. “Partnering in this way with an organization of PHMC’s strength and stability is key to VNA’s ability to deliver on our mission to serve our communities and to expand our reach.”

VNA of Greater Philadelphia’s main services lines include a home health segment that serves about 700 patients, plus a home hospice program that serves about 120 individuals. It also has a 15-bed in-patient unit.

Institute on Aging acquires Better Choice Home Care Agency

Institute on Aging (IOA) has acquired A Better Choice (ABC) Home Care Agency. Both organizations are located in California.

IOA acquired ABC Home Care Agency via “a unique form of donation,” according to a joint press release.

“ABC Home Care’s mission has always been to increase comfort, ensure safety and to preserve the independence of California’s most precious population: our older adults,” President and CEO Mary Ann Thode explained. “I could not be more confident in an organization to carry on – and to live – our mission than the Institute on Aging.”

By adding ABC Home Care, IOA expands both its footprint and ability to serve seniors in more areas and homes throughout California’s Contra Costa County.

All ABC Home Care employees have joined IOA as part of the transition process. Clients will continue to receive their expected services.

“The addition of these home care clients, employees and services are a natural extension of IOA’s commitment to care, and clients can expect a seamless transition with no interruption to the services they currently receive,” IOA President Tom Briody said.

Founded in 1973, IOA is one of California’s largest community- based nonprofit organizations serving older adults and those living with disabilities. The organization serves about 20,000 older individuals and families each year.

Jet Health purchases Blessings Hospice

Jet Health has announced the acquisition of Arlington, Texas-based Blessings Hospice for an undisclosed sum, boosting its presence in an increasingly competitive market. The deal expands the company’s footprint in its home state.

The transaction marks the eighth overall acquisition for the Fort Worth-based Jet Health – and its fifth hospice deal – since its founding in 2016.

“This acquisition will broaden our footprint throughout Texas, which is not only home to our headquarters but also five additional locations from which we currently operate, providing home health and hospice services,” Jet Health CEO Stacie Bratcher said. “We will seamlessly incorporate Blessings Hospice into our thriving network as we strive to continually make a difference in more lives through our services offering.”

Funding for Jet Health’s latest transaction was provided by SV Health Investors and Health Enterprise Partners, while Stradling Yocca Carlson & Rauth acted as legal counsel.

Founded in 2016, Jet Health operates in Texas, New Mexico, Colorado and Idaho.

SimiTree acquires Imark Billing

SimiTree has acquired Miami-based Imark Billing in a strategic expansion of revenue cycle management services. Financial terms of the transaction were not disclosed.

Recently formed after the combination of Simione Healthcare Consultants and BlackTree Healthcare Consulting in May, SimiTree offers an array of clinical, financial and operational services to post-acute care providers.

Imark Billing provides billing, coding and consulting services to home health and hospice agencies nationwide. The company was founded in 2003 by CEO Lynn Labarta, who will move into a leadership role at SimiTree.

“We’re excited to bring on board the skilled team at Imark Billing, with its impressive record of supporting clients in achieving their financial goals,” SimiTree Managing Principal Mike Freytag said in a press release. “This move will deliver the scalability SimiTree needs to address the industry’s growing need for our services as we head into 2022.”