Friday, September 20, 2013

Gentiva Buying, Might Generic Hospice Sell Out?


Gentiva is buying Harden Healthcare's home health, hospice and primacy healthcare divisions from private equity firm CapStar Partners LLC.  

CapStar monetized its equity position in Girling Hospice, Home Care and Community Care.  Harden sold its Tri-Sun nursing home facilities to Senior Care Tri-Sun will rent the buildings back from SCC. The only part of Harden that remains will operate 49 nursing home operations. 

Deals, the buying and selling of health care companies, is a unique feature of health reform.  Private equity firms expect huge returns on their equity investments in health care companies.  Gentiva's move is the reverse of Amedisys, which sold part of their hospice/home health firm to KKR.

When might Generic Hospice sell out to a legendary private equity firm?  It's but a matter of time.


Update 9-21-13:  KKR recapitalized Harden in 2010 and provided funding for Harden's acquisition of Voyager Hospice.

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