Print Article 3/20/2015
HNA Hospice, as part of UPMC's Community Provider Services division, will be managing a new partnership with Family Hospice and Palliative Care, subject to completion of due diligence and receipt of regulatory approvals.
Pittsburgh Business Times
UPMC to integrate state's largest nonprofit hospice into its health system
By Justine Coyne
Pittsburgh Business Times
Mar 19, 2015, 2:35pm EDT
UPMC announced Thursday it will integrate Pittsburgh-based Family Hospice and Palliative Care into its health-care system.
Family Hospice, which is the state's largest nonprofit hospice and palliative care organization, will become part of UPMC Community Provider Services, which includes the UPMC Home Nursing Agency hospice. It will continue to operate under the Family Hospice brand and the combined hospice operations will be managed by HNA.
The opportunity to combine Family Hospice's service with UPMC's came out of the organizations' historic collaborative relationship, according to Deborah Brodine, president for UPMC Community Provider Services, who also serves as a member of Family Hospice's board of directors. Additional nonprofit corporate sponsors, including Presbyterian SeniorCare, will share in the governance and support of Family Hospice's mission, according to UPMC.
"The Family Hospice organization through its governing board had been looking at how to expand its role and mission in the market that it serves for quite some time," she said. "…The board considered a variety of options and one of those was to develop better integration with other health-care providers."
Brodine said there are a number of issues putting pressure on hospice providers.
The biggest challenge facing the industry is increased competition. An increase in the number of for-profit hospice providers has left the industry more fragmented, not just in western Pennsylvania, but across the country.
The industry is also facing increased regulatory scrutiny in the wake of some practitioners across the U.S. abusing hospice eligibility. The additional costs for providers to meet regulatory requirements makes it harder for smaller players, Brodine said.
UPMC said Family Hospice's employees will be retained and become employees of UPMC. Family Hospice has about 250 employees, according to Brodine. Family Hospice CEO Barbara Ivanko will continue to serve in her current role.
Subject to completion of due diligence and receipt of regulatory approvals, a definitive agreement and the closing of the transaction are expected to take place by mid-year, according to UPMC.
TribLive
UPMC ACQUISITION TO EXPAND HOSPICE CARE
UPMC and Presbyterian SeniorCare announced a plan to acquire Mt. Lebanon-based Family Hospice and Palliative Care, the state's largest nonprofit provider of medical services to people with terminal illnesses.
Terms of the joint-venture deal, which is expected to close by the middle of this year, were not disclosed.
UPMC, the largest hospital network in Western Pennsylvania, and Presbyterian SeniorCare, an Oakmont-based operator of retirement communities that serve 6,500 people in the region, said they will expand Family Hospice's service area to 23 counties in the region, up from nine counties.
Family Hospice's 250 workers would become employees of UPMC. Family Hospice CEO Barbara Ivanko would remain as chief executive of the organization, which would be managed under UPMC's Home Nursing Agency.
Family Hospice, which serves about 3,600 patients a year, reported total revenue of $26 million in the 12 months ended June 30, 2013, according to its most recent tax return.
Allegheny Health Network, Pittsburgh's second-largest hospital system and chief UPMC rival, last year merged its hospice and home care services into a joint venture with Celtic Healthcare Inc. in a bid to expand those services.
Pittsburgh Post-Gazette
UPMC says Family Hospice will join its services division
Family Hospice and Palliative Care is joining UPMC Community Provider Services, UPMC officials announced Thursday. Under the agreement, which is pending regulatory approval, Family Hospice will continue to operate under its current name while UPMC Home Nursing Agency will manage both hospice operations. Family Hospice’s employees, including CEO Barbara Ivanko, will keep their jobs while becoming employees of UPMC.
