Amedisys to Purchase Nebraska VNA Hospice, Home Health Operations

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Amedisys (NASDAQ: AMED) has agreed to buy the hospice and residential well being operations of the Nebraska-based nonprofit Visiting Nurse Affiliation (VNA). The transaction is predicted to shut July 1. Monetary phrases have been undisclosed.

VNA serves sufferers in Omaha, Neb., Council Bluffs, Iowa, and surrounding areas. The 125-year-old group pursued the sale to be able to be certain that its residence well being and hospice operations would stay financially viable in the long run. 

“Throughout the previous couple of years, the foundational bills mandatory to satisfy the foundations and laws of the medical insurance trade have overshadowed the power to provide income,” Visiting Nurse Affiliation President and CEO James Summerfelt informed Hospice Information. “New care suppliers have moved into our neighborhood, duplicating VNA companies and making the market overly aggressive.”

VNA is refocusing on its unique mission of offering hospice and residential well being to the uninsured as Amedisys takes on the group’s insured sufferers, in keeping with Summerfelt. Moreover, the nonprofit will collaborate with the Amedisys subsidiary AseraCare to facilitate companies for homeless sufferers. Amedisys acquired AseraCare in 2020 in a $235 million money buy.

VNA will retain its different service strains, which embrace nursing look after homeless shelters, parenting help, mom and little one companies, immunizations and college well being applications.

Amedisys has been an lively acquirer within the hospice market. The corporate’s Chief Working Officer Chris Gerard indicated in a primary quarter earnings convention name that M&A is Amedisys’ “primary capital deployment precedence.” One of many largest hospice and residential well being suppliers within the nation, Amedisys has a number of forthcoming transactions in its pipeline and is constantly looking out for brand spanking new acquisition targets. 

“M&A is a vital device for us to proceed to broaden our geographies and market share, and we’re persevering with to search for extra important methods to deploy capital to develop inorganically all through 2021,” CEO Paul Kusserow stated within the earnings name. “Whereas these are small offers, they improve our presence in robust markets.”

Amedisys earned greater than $537 million in income through the first quarter of 2021, up from almost $491.7 million in Q1 2020. The corporate’s hospice enterprise accounted for $191.5 million in Q1, marking a rise from $169.4 million through the prior yr’s quarter.

Hospice utilization in VNA’s residence state of Nebraska is consistent with the 2018 nationwide common of barely greater than 50%. Utilization within the state reached 51% amongst Medicare decedents in 2018, in keeping with the Nationwide Hospice and Palliative Care Group (NHPCO). Utah leads the nation in utilization at 60.4%.

Iowa ranks fifth within the nation for hospice utilization at 56.6%, NHPCO reported.

“Amedisys will present extra scale and sources that may broaden our alternatives to look after extra sufferers and broaden residence well being companies to extra communities throughout Nebraska and Iowa, particularly throughout these unprecedented and evolving instances within the healthcare trade,” Gerard stated.

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