Amedisys finalizes Asana Hospice deal
Shortly after acquiring Compassionate Care Hospice in 2018 for $340 million, Baton Rouge, Louisiana-based home health giant Amedisys Inc. (Nasdaq: AMED) hinted at its desire to wade deeper and deeper into the hospice pool.
The company has lived up to those plans ever since.
On Thursday, Amedisys announced it closed its acquisition of Asana Hospice. Financial terms of the deal — Amedisys’s third hospice acquisition in the past year — were not disclosed.
With just 1.97% of U.S. market share, Amedisys was the fourth-largest hospice provider in 2019, according to LexisNexis Risk Solutions. Only Vitas Healthcare, Humana’s hospice business and HCR ManorCare were larger.
By acquiring Asana, Amedisys added eight locations to its portfolio in Pennsylvania, Ohio, Texas, Missouri and Kansas. Overall, the company now owns and operates 146 hospice care centers in 33 states, providing care to more than 12,000 patients daily.
“I’m delighted to officially welcome Asana Hospice to our family of caregivers,” Amedisys CEO and President Paul Kusserow said in a statement. “Our strengthened team can now provide the gift of hospice to more patients in more places, enabling them to live each day to its fullest and supporting their families with compassion and grace.”
While Amedisys has expanded dramatically into hospice, the bulk of its earnings still come from its home health offerings. In the third quarter of 2019, Amedisys’s home health revenue totaled $311.5 million; its hospice revenue totaled $162.4 million.
In addition to New Jersey-based Compassionate Care Hospice and Asana, Amedisys also acquired Oklahoma-based RoseRock Healthcare in April.
The Patient-Driven Groupings Model (PDGM) — and the uncertainty that comes with it — is among the drivers behind Amedisys’s hospice push.
“We are continuing to build and buy in hospice. We continue to work a full hospice tuck-in pipeline while streamlining our internal acquisition integration and absorption process as we wait for industry disruption in home health,” Kusserow said during an October earnings call. “We will buy opportunistically in home health once we see what PDGM looks like.”
As of its reported 2019 Q3 financial results, Amedisys had 321 home health centers in 34 states and Washington, D.C.
Right at Home to change HQ
One of the largest in-home care franchise companies in the country is getting a new home.
On Monday, Omaha, Nebraska-based Right at Home announced it’s moving its headquarters to a new building in Omaha’s Aksarben Village. Right at Home will begin occupying the building’s fourth and fifth floors starting later this month.
Overall, Right at Home provides in-home care services across more than 500 franchised and corporate-owned locations globally. That scale and consistent growth prompted the need for Right at Home to relocate its headquarters.
“It’s an exciting time for Right at Home,” President and CEO Brian Petranick said in a statement. “We continue to expand our foothold in the home care industry, allowing us to provide care to more seniors and adults with disabilities, which is sorely needed due to the waves of baby boomers turning age 65 every day. The new headquarters will allow us to enhance the support provided to all of our offices, utilizing the best of current technology.”
Right at Home’s new space was designed to accommodate its expansion over the next 10 years, according to the company.
Specifically, Right at Home has been in the process of strategically adding more corporate-owned locations to its portfolio since May. By adding more corporate assets, the company hopes it will be better positioned to test new technologies and operating models without risk to franchisees.
Ultimately, Right at Home wants to double its current network over the next several years, particularly in metropolitan service areas.
“As we look forward to our growth strategy and how to continue growing at the same rate we have over the last several years, one of the ways that we can do that is through a corporate-owned strategy,” Kerin Zuger, senior vice president of growth and innovations at RiseMarks Brands, told Home Health Care News in December. “Objective No. 1 is helping Right at Home to fill the map.”
Right at Home is a wholly-owned subsidiary of RiseMark Brands.