Transactions: CommonSpirit Health at Home Locations Are Up For Sale; Bayada and Jefferson Form JV Agreement

CommonSpirit Health looks to sell part of its home health operations

CommonSpirit Health is in talks to transfer ownership of its home health operations in Minnesota and North Dakota to an undisclosed third party, according to recently released financial documents.

Currently, CommonSpirit Health operates more than 1,500 care sites and 140 hospitals across 21 states. The health system has about 150,000 employees total, including 25,000 physicians and advanced practice clinicians.

The health system’s home-based care arm CommonSpirit Health at Home is headquartered in Milford, Ohio. It offers specialized home care, home infusion, hospice and medical transportation services nationwide.

The financial documents also detailed CommonSpirit Health’s recent quarterly earnings. The company checked in at $8.5 billion in total revenue, a 12.3% year-over-year increase.

In addition to the potential sale of some of its home health operations, CommonSpirit Health is also in discussions about drawing up an agreement to transfer ownership of 14 Midwest hospitals.

In May, CommonSpirit Health and Essentia Health called off the potential sale of 14 hospitals and other clinics in North Dakota and Minnesota.

Bayada and Jefferson enter joint venture agreement

Bayada Home Health Care and Jefferson Health have teamed up. The joint venture has been dubbed Jefferson Health at Home and will give Jefferson patients in New Jersey and Pennsylvania access to in-home and virtual care.

“The pandemic heightened demand for hospital services delivered at home,” Dr. Bruce A. Meyer, president of Jefferson Health, said in a statement. “Jefferson extended infusion services and remote oxygen monitoring into the homes of thousands of our patients while seeing tens of thousands of patients through our telehealth service. Now, with Bayada and Jefferson aligned, we’re able to leverage their best post-acute-care practices across an expanded geographic footprint while lowering the total cost of care without compromising access or quality.”

Bayada provides home health, hospice and personal care services through its 28,000 nurses, home health aides, therapists and social workers. Its network includes 350 locations in 22 states, with additional locations in Canada, Germany, India and four other countries.

Meanwhile, Jefferson Health’s hospital locations have 926 licensed acute care beds throughout Pennsylvania and New Jersey.

Jefferson Health at Home will leverage both organizations’ resources and experience to execute the program. The joint venture will also operate under the leadership of both organizations.

“This partnership is a revolutionary step toward a future with home at the center of health care,” David Baiada, CEO of Bayada, said in a statement. “Bayada’s management, operational and clinical expertise, paired with Jefferson Health’s clinical vision and commitment to innovation, will continue to transform health care in the Philadelphia region, and we will use this platform to launch bold and innovative digital health care experiences at home –where people want to be most.”

The agreement is slated to be finalized in 2022.

Care Advantage acquires My Home Companion

Care Advantage Inc. has expanded its footprint in Virginia with its acquisition of My Home Companion.

Richmond, Virginia-based Care Advantage has 33 locations throughout Virginia, Maryland, Delaware and D.C.

The deal falls in line with Care Advantage’s strategy of growing its services in this market through its legacy brand, Capital City Nurses.

“I am thrilled to welcome the clients, caregivers, and team of My Home Companion aboard. It was obvious from day one that the businesses complement one another from cultural, geographic, and service offering standpoints,” Tim Hanold, CEO of Care Advantage, said in a statement. “The purchase of My Home Companion signals the acceleration of our M&A strategy across all divisions of our company. We are actively seeking to grow our current footprint, with the support of Searchlight.”

Care Advantage has completed thirteen acquisitions since 2018. This transaction marks Care Advantage’s first completed deal since Searchlight Capital Partners acquired a majority stake in the company.

Addus announces agreement with Blue Cross and Blue Shield of New Mexico

Addus HomeCare Corporation (Nasdaq: ADUS) has entered into a value-based agreement — “Stay Healthy at Home” — with Blue Cross and Blue Shield of New Mexico (BCBSNM).

The program is geared at Medicaid members served by BCBSNM’s subsidiary company, Ambercare Corporation. Ambercare is an operator of home health, hospice and personal care services in New Mexico.

The “Stay Healthy at Home” program aims to help BCBSNM members gain increased access to care and close care gaps. In order to accomplish this, Addus’ team will work with the BCBSNM care coordination staff.

As a value-based care program, service metrics and clinical quality outcome measures will play an important role in the program.

“We are pleased to enter this agreement with BCBSNM, to help achieve better health and financial results for BCBSNM as well as improved member satisfaction and outcomes,” Dirk Allison, chairman and CEO of Addus, said in a statement. “As a provider of comprehensive home-based care, we have a significant opportunity to work with the BCBSNM team to promote better outcomes. The ‘Stay Healthy at Home’ program will benefit both our dedicated team of caregivers and the clients we serve across New Mexico.”

Additionally, Addus’ home care aides will receive training that will enable them to identify and report changes in a member’s condition that could require urgent intervention.