Home care provider Compassus will take over management of Providence’s home-based care services through a joint venture the two companies announced Tuesday.
Under the arrangement, Brentwood, Tennessee-based Compassus would manage and jointly own Providence’s home health, hospice, community-based palliative care and private duty nursing services under the name Providence at Home with Compassus, the companies said in a news release. Neither company would disclose financial terms of the deal, which is subject to approval by state and federal regulators.
Related: Bon Secours forges joint venture with Compassus
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. Providence offers private duty nursing in California.
Compassus provides home-based care in 30 states. Both organizations provide services in Texas.
The companies said in the release the joint venture will help them better shoulder rising costs of labor, medical supplies and pharmaceuticals. They also said working together will make it easier to expand access to services.
The joint venture is the latest deal Compassus has forged this year with nonprofit health systems. In June, it announced a partnership with Columbus, Ohio-based OhioHealth to manage its home health and hospice operations. In February, Compassus formed a joint venture with Cincinnati-based Bon Secours Mercy Health to deliver home health and hospice services across five states.
Compassus has also provided home-based care services for St. Louis-based Ascension Health since 2019, when the private Catholic health system and TowerBrook Capital Partners acquired the at-home care provider.
The joint venture is part of a growing trend among hospital systems looking to refocus on core assets and divest or transfer management of services, such as home health, hospice and skilled nursing, to other operators.
Correction: An earlier version of the article incorrectly stated that Compassus is based in Brentwood, Texas.
