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Consolidation in post-acute care continues with Addus deal, others

Addus HomeCare has acquired Priority Home Health Care, further expanding its footprint in Ohio.

Downers Grove, Ill.-based Addus focuses on the dual-eligible population, providing home and community-based services. The company in 2013 sold its home health division to LHC Group for $20 million, allowing it to focus on providing assistance to individuals who need help with daily living.

The Priority transaction will add six offices in the Cleveland, Akron and Columbus areas that together brought in about $11 million in revenue in 2014.

Addus already has two locations in Ohio. It is focusing on expanding in states that are transitioning their long-term-care programs to Medicaid managed-care organizations, it said in a release. The addition of Priority will allow Addus to take part in Ohio's transition to MCOs and participate in its dual-eligible demonstration pilots.

Providers in post-acute care have been rapidly consolidating and moving assets in response to insurers continuing to squeeze reimbursement for them.

The Ensign Group, a Mission Viejo, Calif.-based post-acute-care operator, also disclosed four deals Monday. The company, which forged 14 deals in 2014, continued to add locations in the southwest.

In Lubbock, Texas, Ensign acquired Hospice of the South Plains as well as the Mildred and Shirley L. Garrison Geriatric Education and Care Center, a 103-bed skilling-nursing center.

It also added three locations in Pueblo, Colo.: Riverwalk Post-Acute and Rehabilitation, a 60-bed skilled-nursing center; Rock Canyon Respiratory and Rehabilitation Center, with 81 beds; and the Villas at Rock Canyon, an assisted-living center.

Finally, it bought Alarys Home Health in Scottsdale, Ariz.

Two other previously announced deals also closed at the start of the New Year.

Kindred Healthcare, which is shifting its focus away from skilled nursing while building up its home health and rehab businesses, completed its $195 million acquisition of Centerre Healthcare Corp., an inpatient rehabilitation provider.

And HealthSouth Corp., whose core business is operating inpatient rehab hospitals, sealed its $750 million deal for Encompass Home Health & Hospice to expand into those service lines.

Follow Beth Kutscher on Twitter: @MHbkutscher


Beth Kutscher

Beth Kutscher is based in Mountain View, Calif., and covers healthcare innovation and digital health. Before joining Modern Healthcare in 2012, she was a content editor and healthcare reporter for the New York-based Mergermarket Group. She previously was news and online editor for Pharmaceutical Executive and deputy news editor and healthcare reporter for PRWeek. She has a bachelor's degree in English from Cornell University.

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