The home health provider Almost Family, Inc. will pay Community Health Systems $128 million for 80% equity, creating the nation's largest for-profit hospital/home health joint venture.
Home healthcare provider Almost Family, Inc. will pay $128 million to acquire an 80% stake in the home health and hospice unit of Community Health Systems, Inc., the two companies announced Monday.
When finalized by the end of the year, the deal is expected to create the largest joint venture between a publicly traded hospital and a home healthcare provider, the two companies said in a joint media release.
CHS Home Health operates 74 home health and 15 hospice branch locations in 22 states. When the deal is finalized, Almost Family will operate 340 branches across 26 states with annual net revenues expected to exceed the $800 million.
Almost Family CEO William B. Yarmuth said the Louisville, KY-based home health provider has grown dramatically in size and in scope since its founding in 1976.
"This partnership with CHS may be the most strategic of all the investments we've made yet," Yarmuth said. "We believe it will enable us to see the healthcare continuum and home care specifically through the eyes of not only one of America's best hospital companies, but one of America's best healthcare companies, leading us to an even better understanding of the needs of our patients and how to meet them."
Almost Family said the acquisition would:
- Create the nation's third-largest Medicare home health provider.
- Substantially add scale with approximately $200 million in annual revenues: $170 million in home health and $30 million in hospice.
- Create a true post-acute healthcare partnership to better manage patient needs across the CHS hospital network; collaborate on improving care coordination and transitions at a lower cost to Medicare; and provide development opportunities for additional joint ventures in CHS locations not supported by a common owned certified agency.
- Expand Almost Family's geographic footprint in 26 states.
Wayne Smith, CEO of Franklin, TN-based CHS, said retaining "a meaningful interest" in the home health unit would "help ensure appropriate post-acute care coordination for the benefit of our patients."
"We believe hospitals need strong strategic post-acute partners to provide the right care for patients and return them safely and securely home following a hospital stay. We selected a partner with proven capabilities and a successful track record," Smith said.
Community Health Systems, Inc. is one of the largest publicly traded hospital companies in the United States and owns, leases or operates 158 hospitals in 22 states.