Business Briefs: BioScrip, CenseoHealth
BioScrip Announces Home Infusion Acquisition and Public Offering
BioScrip, a provider of infusion and home care management solutions, has entered into an agreement to buy HS Infusion Holdings (Home Solutions), a Hammonton, New Jersey-based home infusion and home nursing products services provider. The company’s principal shareholder is KRG Capital Partners, a Denver-based private equity firm.
BioScrip will buy substantially all of the assets and assume certain liabilities of Home Solutions and its subsidiaries for $85 million. The purchase price is made of $80 million in cash and $5 million in shares of the company’s common stock. BioScrip and Home Solutions generated 2015 revenues of $982 million and $109 million, respectively.
Upon completion of the transaction, Daniel Greenleaf will become CEO of BioScrip and join the board of directors. He was previously president and CEO of Coram Specialty Infusion Services, a health care company with about $1.2 billion in revenues, 5,000 employees and 85 locations. Rick Smith, director and CEO of BioScrip, will become vice chairman of the board. BioScrip will continue to be headquartered in Denver and will maintain Home Solution’s billing and operations center in Hammonton.
BioScrip also announced it has commenced an underwritten public offering for its common stock, with Jeffries LLC acting as sole book-running manager. BioScrip plans to use the net proceeds from the offering to fund the cash portion of its $85 million purchase of Home Solutions and replay a portion of its outstanding borrowings under its revolving credit facility. The proceeds will also be used for general corporate purposes.
CenseoHealth Launches New Venture
CenseoHealth LLC, a provider of in-home health assessments conducted by physicians, has formed Principium Health, a new business unit that delivers high-touch, high-quality care to seniors. Its mission is to provide community based, in-home chronic care management services.
With the addition of Principium, CenseoHealth will be able to deliver its managed care customers a patient-centered model to a population that is difficult to treat. The new unit will be led by valued-based health care expert Kevin P. Murphy, who has joined as CEO to spearhead the development of the business and oversee strategy, growth and operations.
Murphy has previously managed a high-risk patient population for one of the leading Pioneer ACOs and managed five of the most successful physician practices that participated in the Independence At Home CMS Demonstration Project, which has been touted as the most financially successful demonstration savings in the history of the Medicare program, according to Patrick Conway, chief medical officer and director of the office of clinical standards and quality for the Centers for Medicare & Medicaid Services (CMS).
Accord Services Expands Beyond Georgia
Accord Services, a provider of home health care for complex and catastrophic injuries, is expanding its specialized care to Alabama and surrounding areas. The company was founded in 2001 and has provided services throughout Georgia since its inception.
The home health provider was born out of The Shepard Center, a top rehabilitation hospital. Accord has partnered with Coppermine Capital, a Boston-based private investment firm, to expand nursing care to local communities nationwide. The company specializes in complex and catastrophic brain and spinal cord injuries, burns and wound care.
St. Mary’s Home Health Care Expands
St. Mary’s Health Care System received permission from the Georgia Department of Community Health to expand its home health services into Franklin County. The decision, effective immediately, adds to the other Georgia counties served by St. Mary’s Home Health Care Services, including Athens-Clarke, Barrow, Greene, Jackson, Madison, Morgan, Oconee, Oglethorpe and Walton.
“We have been providing hospice services in Franklin County for years, so we know the county well and love serving the people there,” Karen Joyce, director of St. Mary’s Home Health Care/Hospice Services, said. “We’re so glad we can offer the full continuum of our home care services to this wonderful community. We are fully staffed and accepting new patients immediately.”
The home health care services join the emergency, inpatient and outpatient services offered by St. Mary’s Sacred Heart Hospital, as well as Sacred Heart’s HealthWorks industrial medicine program and physician practices. St. Mary’s Home Health Care services include disease management and education, medical direction by a physician, nursing care, therapy, telehealth monitoring, wound care and enterostomal nursing, medical social work, dietary counseling and home health aides.
Fazzi Launches Home Health and Hospice Survey
Northampton, Massachusetts-based home care and hospice consulting, training, outsourcing, benchmarking, and research firm Fazzi Associates has launched the 2016 National Home Care and Hospice State of the Industry Study, the fourth study of its kind. Fazzi is urging agencies to participate in the study’s confidential, 20-minute telephone survey going on through the end of June.
The study cover numerous topics, including telehealth, the use of multidisciplinary teams, compensation strategies, health care reform models, mergers and partnerships, outsourcing, staffing models and more.
“Everything about this study is designed to help agencies improve quality and lower cost,” Dr. Robet Fazzi said in a statement. “The findings will be extremely important due to the unprecedented regulatory and payment challenges that are transforming the home health and hospice industry. We also want people to know that every agency that participates will receive an advance copy of the findings to be released this fall.”
The study is guided and overseen by a steering committee of prestigious leaders of state and national associations and of agencies in every region.
Written by Amy Baxter