The home health care industry has been changing rapidly in recent years. As the federal government has been intent on reducing Medicare and Medicaid reimbursements for home care support services it has forced many companies in the sector to become more innovative. Some of those innovations have led to technological advancements to improve communication and support, but it is also led to some intriguing joint ventures.
One of those joint ventures involves BrightSpring and Pharmerica. BrightSpring Health Services and PharMerica Corporation announced at the beginning of the month that what they will join together to provide community and home-based health and pharmacy services to those individuals who have a high need or where there are medically complex challenges to address.
This new joint venture creates a diversified health care services company that can operate across numerous sectors, including clinical, nonclinical, and pharmacy settings.
According to the press release, BrightSpring and PharMerica Combine to Form Comprehensive Health Services Company, published by Business Wire:
““Combining BrightSpring and PharMerica brings together two leaders within their respective markets. Together, we will have an unmatched platform and opportunity to drive improved patient outcomes and reduced costs through integrated care models – combining our community-based health services and pharmacy capabilities. Our complementary services will have new and valuable benefits to our clients, patients and customers,” said Jon B. Rousseau, President and Chief Executive Officer of BrightSpring.”
According to this press release, the focus is to create a more localized and customized approach to the community and clients they aim to serve. The company will be providing services for those needing behavioral support as well as the aging population throughout the community.
Greg Weishar, President and Chief Executive Officer of PharMerica also noted: “This transaction provides both significant strategic and day-to-day benefits for the client and patient bases and valued customers of both organizations.”
As many aging seniors will likely require prescription medications and other medical related support through later years in life, these types of joint ventures make sense on certain levels. It’s unclear how a joint venture such as this might impact smaller, independent home care agencies, or if this joint venture will provide basic care support services without a medical component required.
The transaction is still subject to regulatory approval and other factors, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, but the finalization of this new joint venture is expected to be completed some time within the first quarter of 2019.