Transactions: Including Health Inks New JV; PHMC will partner with VNA of Greater Philadelphia

  Transactions: Including Health Inks New JV;  PHMC will partner with VNA of Greater Philadelphia

Encompass Health Corp. (NYSE: EHC) and Saint Alphonsus Health System are forming a new joint venture in Idaho. The transaction closed on Jan. 1.

“We look forward to working collaboratively with Saint Alphonsus Health System to serve together as a compassionate and transformative healing presence within our communities,” Barb Jacobsmeyer, president and CEO of Encompass Health’s home health and hospice business, said in a statement. “This joint venture combines the expertise and resources of Encompass Health, one of the nation’s largest providers of home health and hospice services, with the trusted health care provider Saint Alphonsus, with more than four decades of home health service in Idaho.”

The Birmingham, Alabama-based company is currently working to separate the home health and hospice segment into its own publicly traded enterprise, though some investors have urged the organization to instead consider a third-party merger.

The overall Encompass Health footprint includes 145 hospitals, 249 home health locations and 95 hospice locations in 42 states and Puerto Rico.

Story Highlights

  • Encompass Health, Saint Alphonsus announce joint venture

  • The new JV includes Saint Alphonsus home health and hospice locations in Boise, Idaho. It also includes the Encompass Health home health and hospice locations in Boise and Nampa, also located in the Gem State.

The recently announced JV complements a joint venture between Encompass Health and the nonprofit Saint Alphonsus established in 2019.

“We have an existing joint venture with Encompass Health for in-patient rehabilitation services, and we are excited to establish a new joint venture with Encompass Health as a valued home health and hospice provider in Idaho, with a proven ability to provide high-quality, cost-effective care while avoiding unnecessary hospital readmissions,” Odette Bolano, president and CEO of Saint Alphonsus, noted.

In-home care organizations combining operations Public Health Management Corporation (PHMC) has announced its intention to affiliate with Visiting Nurse Association of Greater Philadelphia, the oldest and largest nonprofit home health, palliative and hospice provider in the region.

As part of this transaction, the nonprofit PHMC will acquire Philadelphia Home Care (PHC), the parent company of VNA of Greater Philadelphia. It will also take over Visiting Nurse Society (VNS), VNA’s supporting foundation. PHC, VNA and VNS will become PHMC subsidiaries pending all final legal and regulatory approvals.

“PHMC is committed to VNA’s mission and longstanding legacy of delivering comprehensive home health, palliative and end-of-life care of the highest quality to individuals in our region,” Richard J. Cohen, president and CEO of PHMC, said in a press release. “We have a strong team in place to ensure a seamless transition as we align VNA’s services to existing PHMC programs and enrich the continuum of care for our combined organization.” Moving forward, PHMC will integrate VNA into its family of programs and subsidiaries.

“VNA is excited to be joining the PHMC enterprise,” Mary Zagajeski, interim CEO of VNA, said. “Partnering in this way with an organization of PHMC’s strength and stability is key to VNA’s ability to deliver on our mission to serve our communities and to expand our reach.” VNA of Greater Philadelphia’s main services lines include a home health segment that serves about 700 patients, plus a home hospice program that serves about 120 individuals. It also has a 15-bed in-patient unit.

With more than 3,000 employees, PHMC serves hundreds of thousands of individuals each year. The relationship “will align VNA within PHMC’s Integrated Health Services portfolio” and provide “programmatic integration and referral opportunities between the organizations,” according to the press release. That includes PHMC’s network of six federally qualified health centers and its medical respite programming for individuals experiencing homelessness.