Providence and Compassus kicked off Monday the first phase of a joint venture to manage the health system’s home care operations.
Brentwood, Tennessee-based Compassus will manage six Providence home health locations in Alaska and Washington and five of the health system’s hospice and palliative care locations in Alaska, Texas and Washington. The operations will be run under a new entity called Providence at Home with Compassus, the companies said in a news release.
Neither company disclosed the financial terms of the deal.
Related: Providence, Compassus form home care joint venture
The second phase of the joint venture, which will include home care operations in California and Oregon, is expected to be finalized in the coming months, pending regulatory reviews, the release said. The Oregon Health Authority’s Health Care Market Oversight Program began scrutinizing the arrangement in December to ensure it won’t result in higher costs and reduce access for Oregon consumers.
Renton, Washington-based Providence operates 24 home health locations in Alaska, California, Oregon and Washington. The nonprofit health system also operates hospice and palliative care services in those states, as well as Texas. It also offers private duty nursing in California.
Compassus provides home health, hospice, palliative care and home infusion services in 30 states.
The two companies said in the release the joint venture will help position them to meet the growing demand for home health and hospice services amid rising healthcare costs and workforce shortages.
