More health systems offload home health businesses

As financial challenges and labor shortages continue to plague much of the healthcare industry, many hospitals and health systems have decided to pause, shrink or remove their home health services.

In early November, Toledo, Ohio-based ProMedica sold its home health, palliative and hospice business for around $710 million to Gentiva Health Services, a hospice company backed by Humana and private equity firm Clayton Dubilier & Rice. 

Most ProMedica hospice locations will rebrand to Heartland Hospice by the end of 2023, with home health locations rebranding to Heartland Home Health in early 2024, and its palliative care business rebranding to Empatia Palliative Care, according to a Nov. 1 release. 

The sale comes after ProMedica temporarily paused its hospital-at-home care in late September. Around the same time, Roseville, Calif.-based Adventist Health shut down its at-home care services for good, which had initially launched May 2020. 

Layoffs have also been an unfortunate part of the continued home health business offloading. Syracuse, N.Y.-based St. Joseph's Health eliminated 63 full and part-time positions as a result of their home health agency closure Oct. 23. The system, part of Livonia, Mich.-based Trinity Health, cited challenges including declining patient volumes, high-cost staffing contracts and rising supply costs. 

CHI Mercy Health in Roseburg, Ore. home health services line closure also resulted in around 50 layoffs in mid-April, with Arcata, Calif.-based Mad River Community Hospital forced to cut 27 jobs when it suspended its home health services Feb. 11. 

While not a full closure, Pittsfield, Mass.-based Berkshire Health Systems shrunk its at-home care services in July to help alleviate staffing shortages. However, in October, the system resolved their staffing concerns and restored full county-wide services, a Berkshire Health System spokesperson told Becker's.

In March, Cabell Huntington (W.Va.) Hospital phased out its home health services in a 90-day plan to align resources and reduce cost. The hospital, part of Mountain Health Network, was also forced to shut down its CHH Surgery Center on April 28. 

Other notable home health service closures this year were Cape Girardeau, Mo.-based SoutheastHealth and Bay Area Hospital in Coos Bay, Ore., which both closed their services in August; Oroville (Calif.) Hospital in February; and Hollister, Calif.-based Hazel Hawkins Memorial Hospital on Jan. 31.

Editor's note: This article was updated Dec. 7 at 9:30 a.m. CT.

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