Toledo, Ohio-based ProMedica, a 12-hospital system, has completed the sale of its home health, palliative and hospice business to Gentiva Health Services, a hospice company backed by Humana and private equity firm Clayton Dubilier & Rice.
The transaction, reported by Bloomberg to be valued at about $710 million, adds more than 120 locations to Gentiva, which now operates more than 615 facilities across 38 states and is the largest U.S. hospice company by revenue and number of patients, according to its website. More than 4,000 employees have also joined Gentiva.
Most of ProMedica's hospice locations will rebrand to the Heartland Hospice brand by the end of 2023. Home Health locations will rebrand to Heartland Home Health in early 2024. ProMedica's palliative care business will operate under Gentiva's Empatia Palliative Care brand.
David Causby will continue to serve as Gentiva's president and CEO, and the combined company will remain headquartered in Atlanta.
"This is a significant milestone because we believe this transaction will benefit the patients and families in our care and are enthusiastic about welcoming the talented caregivers at ProMedica into the Gentiva family," Mr. Causby said in a Nov. 1 news release. "As a combined company, we plan to increase the number of caregivers and provide greater access to our care offering to more patients in the communities we serve."