ProMedica sells hospice and home care business to Gentiva for $710M
ProMedica has entered into an agreement to sell its home care and hospice business to Gentiva in a deal worth $710 million.
Gentiva is a dedicated hospice, palliative, and personal care company with more than 30,000 associates and caregivers providing care to 24,000 patients on average each day across 36 states. Under terms of the deal, Gentiva will acquire ProMedica’s hospice and home care business, which goes under the brand Heartland, including its agencies and locations. Bloomberg was first to report the purchase price.
Gentiva plans to continue investing in Heartland with more hiring to ensure continued care to patients in its expanded service area, the company said.
"This transaction is an exciting development for patients and their families that will enable us to extend our best-in-class caregiver recruitment and retention programs and provide high-quality care to more patients in more areas throughout the country," David Causby, president and CEO of Gentiva, said in a statement. "Gentiva consistently achieves industry-leading quality of care and patient family satisfaction scores by investing in our people and caregiving capabilities. Heartland is a high-quality hospice and home care provider that shares our values on compliance and putting patients first, and my colleagues and I look forward to growing our number of caregivers so we can expand access to the highest-quality care for more seniors."
The deal is expected to close in the second quarter of 2023, subject to customary closing conditions and state and federal regulatory approvals. While terms of the deal were not disclosed, Bloomberg revealed the $710 million deal value, citing people familiar with the matter.
"As part of the Gentiva family, the Heartland agencies will be well-positioned to continue providing compassionate care that prioritizes patient comfort, dignity, and well-being throughout the care continuum," Arturo Polizzi, president and CEO of ProMedica, said in a statement. "For ProMedica, this transaction is an important step toward simplifying our organizational structure and ensuring our long-term financial strength. We are pleased to be able to transition these agencies to a trusted industry leader, enabling ProMedica to commit more time, energy, and resources to our core operations."
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."