Amedisys, Inc. a leading home health, hospice, and personal care company, announced that it has signed a definitive agreement to acquire Contessa Health, a leader in hospital-at-home and skilled nursing facility (SNF) at-home services. In addition, Amedisys plans to invest meaningfully in the future growth of Contessa’s business and proprietary informatics platform, CareConvergence™. Upon closing of the deal, Nashville, Tenn.-based Contessa will operate as a wholly owned division of Amedisys.
Founded in 2015, Contessa partners with health systems and health plans across the country to offer complex patients acute and post-acute care in the comfort of their homes. Contessa’s unique, risk-based model and claims analytics capabilities bring the essential elements of inpatient hospital and SNF care to patients’ homes and have repeatedly proven to improve patient outcomes and experience while reducing costs and hospital readmissions. Today, Contessa has a number of prominent health system joint ventures and payor partnerships such as Mount Sinai Health System, Marshfield Clinic Health System, Ascension Saint Thomas, CommonSpirit Health, and Highmark Health and has a robust pipeline for potential expansion with more than a hundred hospitals across an additional 28 states.
Contessa Founder and CEO Travis Messina, along with his experienced management team, will continue to lead Contessa, which will maintain its brand and operate and be reported on as a separate and unique business within Amedisys.
Strategic benefits of the transaction include:
- Adds higher acuity, home-based care to Amedisys’ current service offering, allowing Amedisys to create a premier home-based health system.
- Significantly expands Amedisys’ Total Addressable Market (TAM) for in-home care services from $44 billion to $73 billion.
- Provides an innovations platform that Amedisys will continue to invest in to accelerate growth of current services and to expand into additional in-home care services.
- Creates a truly differentiated tech-enabled, home-based care platform adding capabilities, services, analytics, and management needed to become a risk-bearing, home-based care delivery organization, expanding well beyond traditional Home Health and Hospice.
- Positions Amedisys as the first national Home Health provider organization to move into the Hospital at Home and SNF at Home space in a meaningful way with the ability to scale across a large geographic footprint.
- Accelerates admissions growth opportunities for Amedisys Home Health and Hospice to seek care coordination and preferred provider organization agreements with current and future Hospital at Home and SNF at Home hospital partners.
- Leverages Amedisys’ nationwide Home Health footprint, industry leading quality Home Health primary care professionals, and Home Health Business Development staff to accelerate Contessa’s revenue growth opportunity.
- Enhances the ability of Amedisys to provide quality care and outcomes across a continuum of care and lower costs through value-based care arrangements for commercial, Medicare, Medicare Advantage, and managed Medicaid payors.
- Creates an attractive platform to recruit and retain highly trained and skilled clinicians interested in providing higher acuity care in the home.
- Adds access to proprietary informatics platform, CareConvergence™, that manages the logistics for high-acuity care in the home and the risk-bearing contracts that Contessa holds with payors.
The transaction is expected to close later this summer and is subject to customary closing conditions, including receipt of regulatory approvals. Lazard is serving as financial advisor to Contessa, and Bass Berry & Sims is serving as legal counsel. Butler Snow is serving as legal counsel to Amedisys.
Amedisys, Inc. is a leading health care at home company delivering personalized home health, hospice, and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. More than 2,900 hospitals and 78,000 primary care professional nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, Louisiana with an executive office in Nashville, Tennessee, Amedisys is a publicly held company. With approximately 21,000 employees in 514 care centers in 39 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 418,000 consumers and clients in need every year.
Based in Nashville Tennessee, Contessa is the leader and pioneer of Home Recovery Care, a risk-based model that combines all the essential elements of inpatient hospital care and SNF at Home in the comfort of consumers’ homes. Founded in 2015, Contessa utilizes CareConvergence™ – a proprietary technology platform – to coordinate and power the seamless delivery of Home Care that is safe, affordable and improves consumer outcomes. Contessa’s turnkey solution provides upfront savings to health plans, enables health systems to reinvent their care delivery model and helps primary care professionals deliver a better experience for their consumers.
This was reported by Amedisys on June 30, 2021.
Contact information: Kendra Kimmons, Vice President of Marketing & Communications, Amedisys, Inc., 3854 American Way, Suite A, Baton Rouge, Louisiana 70816; 225-299-3708; Email: kendra.kimmons@amedisys.com; Website: https://www.amedisys.com/
Contact information: Contessa Health, 49 Music Square West, Suite 401, Nashville, Tennessee 37203; 844-251-2638; Email: info@contessahealth.com; Website: https://contessahealth.com/
