A Missouri health care company has entered into a deal to sell two of their home health care agencies to a joint venture. This joint venture includes the LHC Group. These home health care agencies are located in Jefferson City and Mexico. They are both affiliated with SSM Health.
The original deal to sell these agencies to University of Missouri Health Care was announced in August, 2018 and is now being finalized. Hospice operations are also being sold as a part of this deal.
This joint venture will also involve Capital Region Medical Center, a hospital in Jefferson City. When the deal is complete, all of this will be renamed as Central Missouri Home Health and Central Missouri Hospice.
LHC has been providing home health care services for Capital Region since last August and Capital Region has been working with University of Missouri Health Care since 1997. Josh Proffitt, the chief financial officer for LHC Group noted, “Once (SSM) learned of all the connectively and our experience and hospital partnerships model, it evolved into us, through our JV with Capital Region, acquiring the home health and hospice.”
According to the Modern Healthcare blog, SSM Health to sell two hospitals’ home health and hospice agencies, written by Tara Bannow:
“The home health and hospice operations in Mexico and Jefferson City currently provide care to about 250 patients, and Proffitt said he hopes the partnership will grow that. The agencies employ about 50 people, and Proffitt said he plans to keep all of them.
“If anything, we plan to grow,” he said, adding that when LHC partners with hospitals, it brings back-office support, human resources, training and performance improvement services.
SSM spokesman Brian Westrich declined to say when St. Louis-based SSM expects to close on the sale of its two hospitals to MU Health Care, but he said talks are continuing to progress.”
The LHC Group noted that it anticipates being able to draw about $5 million in revenue thanks to its majority stake in this joint venture. The deal is expected to close June 1. None of the organizations having a part in this joint venture divulged financial terms, which may be disclosed at a later date.
Brian Westrich commented in an email, “At SSM Health, it is our responsibility to ensure the continued sustainability of quality healthcare in all of the communities we serve. Talks are continuing to progress with MU Health Care regarding additional partnership opportunities including the potential transfer of ownership of our ministries in Mid-Missouri.”