One of the nation’s largest home healthcare providers, Amedisys, is set to become the third-largest hospice care provider after announcing plans to acquire Compassionate Care Hospice for $340 million.
The deal is exemplary of the high consolidation in the post-acute care space. Recently, health insurance provider Humana acquired stakes in Kindred Healthcare’s home health business and in Curo Health Services, a national hospice chain, in separate multibillion-dollar deals.
Baton Rouge, Louisiana-based Amedisys provides home health, hospice and personal care services across 34 states and Washington, D.C., and serves more than 369,000 patients and clients annually. Compassionate Care Hospice, based in Parsippany, New Jersey, cares for approximately 3,300 patients daily, with 2,300 hospice professionals in 53 locations in 24 states. Its revenues are approximately $188 million, with $27 million in EBITDA.
The deal is expected to close Feb. 1, 2019, with Amedisys acquiring full ownership interests for the fixed transaction price. Amedisys currently serves more than 7,500 hospice patients in 22 states across 83 hospice centers, and the deal greatly expands its hospice presence. When completed, the deal will bring Amedisys up to 136 care centers in 34 states, with an average daily census of roughly 11,000 patients and 5,700 hospice employees.
“By joining forces with Compassionate Care Hospice, we at Amedisys are strengthening our hospice family and gaining the privilege to build a team that can serve more patients in more places,” Amedisys CEO and President Paul Kusserow said in a statement. “This also demonstrates that we’re delivering on our promise to our shareholders and employees to expand our hospice footprint. I’m proud to welcome these outstanding caregivers into the Amedisys family as we bring together two organizations committed to patients and outstanding clinical quality.”