Amedisys, a house well being, hospice and private care firm, on Wednesday stated it had signed a definitive settlement to amass Nashville-based Contessa Well being, a hospital-at-home and expert nursing facility at-home supplier, the corporate stated.
The $250-million acquisition is predicted to shut in late summer time. Contessa will grow to be a wholly-owned division of Baton Rouge, La.-based Amedisys.
Amedisys Chairman and CEO Paul Kusserow characterised the acquisition as “strategic” and stated it would enable the corporate to supply higher-acuity in-home care.
“In the present day’s announcement is a strategic and promised milestone for Amedisys’ strategic development and differentiation, as we increase our capabilities to replicate rising market calls for and evolving affected person desire for higher-acuity in-home settings,” Kusserow stated in a press release. “Whereas Amedisys continues to be a nationwide chief in high quality dwelling well being and hospice providers, we now have all the time labored to innovate and supply much more forms of care within the dwelling, as sufferers more and more search to ‘age in place’ in environments which might be acquainted and secure. Bringing the Contessa workforce into our household considerably advances this technique.”
Contessa, which was based in 2015, companions with well being techniques and well being plans throughout the U.S., together with Mount Sinai Well being System, Marshfield Clinic Well being System, Ascension Saint Thomas, CommonSpirit Well being and Highmark Well being, to supply complicated sufferers acute and post-acute care of their houses, the corporate stated. Contessa has potential plans to increase to greater than 100 hospitals in 28 extra states.
“To proceed constructing on the momentum we have created and to make the most of all the expansion alternatives which at present exist, we wished a accomplice with a nationwide footprint, a fame for excellent scientific high quality and the size and infrastructure accessible to speed up our trajectory. Amedisys has all of that and extra,” Contessa Founder and CEO Travis Messina stated in a press release.
Underneath the deal, Messina and his administration workforce will proceed to guide Contessa, which might be operated and reported on as a separate enterprise inside Amedisys with its current branding.
The acquisition comes at a time when competitors within the dwelling well being house is heating up.
Even earlier than the COVID-19 pandemic, dwelling well being was increasing because the U.S. inhabitants aged. The phase continues to develop as extra individuals want to obtain care at dwelling, both nervous about returning to nursing houses that had been onerous hit throughout the pandemic or inspired by the capabilities of dwelling care, Kusserow stated.
“Notably since COVID, extra individuals need to see if there are options to what we name getting older in place. This means to deal with sicker, extra complicated sufferers within the dwelling creates an actual development when it comes to dwelling care,” he stated. “This performs proper into the candy spot of the place dwelling care is heading.”
Messina stated the acquisition will create a continuum of take care of sufferers in what can in any other case be a fragmented trade.
“It’s a wildly aggressive house, and all people is making an attempt to determine what they’ll do within the dwelling,” which might create fragmentation, he stated.
Regardless of the present competitors, Kusserow stated he expects to see a higher consolidation of the house well being house later this yr when federal CARES ACT funding runs out and forces others out of the enterprise.
“We see a chance to put down a footprint to cowl the wants of most of our potential companions on the market,” Kusserow stated.
Amedisys expects the acquisition to increase its whole addressable marketplace for in-home care from $44 billion to $73 billion.
Amedisys is a accomplice to greater than 2,900 hospitals and 78,000 physicians nationwide for post-acute care. Amedisys has about 21,000 workers in 514 care facilities in 39 states and the District of Columbia and serves greater than 418,000 sufferers and purchasers yearly.
Contessa makes use of a proprietary know-how platform known as CareConvergence to coordinate and ship dwelling care.