HCA Healthcare Continues Dealmaking with Sale of Home Health Locations to LHC Group

HCA Healthcare, a major hospital chain, is making moves in the home health and hospice business with a new deal on the horizon. After recently acquiring a majority stake in Brookdale Senior Living’s home health and hospice business for $400 million, HCA is now looking to sell off nearly 50 home health locations, hospices, and therapy agencies across 22 states to home care provider LHC Group.

The deal, expected to be finalized in the fourth quarter of 2021, is part of HCA’s strategy to strengthen its existing networks. William Rutherford, executive vice president and chief financial officer of HCA, explained that the focus is on markets where the chain already has a full range of services, rather than piecemeal offerings outside of its networks.

While the home health and hospice moves are the latest examples of HCA’s strategic merger and acquisition strategy, Rutherford noted that the company’s strong balance sheet allows for continued dealmaking across acute care and other network support services.

In addition to discussing the business deal, Rutherford also addressed questions about how HCA is managing the ongoing challenges of COVID-19. He highlighted the organization’s experience in managing electives, capacity, and staff during the pandemic’s fourth wave, noting that the chain has tools in place to address staffing shortages and disruptions.

Overall, HCA Healthcare remains focused on its strategic objectives and is prepared to navigate the ever-changing healthcare landscape, including potential trends in care delivery such as tech-enabled primary care and value-based care. The organization is open to partnerships and developments in these areas while continuing to prioritize the strength of its existing networks.