Ascension, Envision Form Post-Acute Care Joint Venture
By Christine Kern, contributing writer
Agreement continues focus on patient-centered care and population health management.
Ascension Health, a subsidiary of Ascension, and Evolution Health, a division on Envision Healthcare, have agreed to launch a joint venture to provide an array of post-acute services including home care, hospice care, and infusion therapy to individuals in communities served by Ascension’s Health Ministries, according to a press release.
The joint venture pairs St. Louis-based Ascension Health, one of the largest U.S. hospital and long-term-care operators, with Evolution Health, the subsidiary launched by Greenwood Village, CO-based Envision in 2012 to expand into the $64 billion ambulatory-care management market. The deal bolsters Ascension's reach in post-acute care, which the system recently said it would consolidate under a newly formed entity, Ascension Health Senior Care.
“This agreement furthers Ascension’s focus on delivering person-centered care to individuals in a variety of settings, which is key to our efforts to manage the health of patient populations,” said Anthony R. Tersigni, EdD, FACHE, President and CEO, Ascension. “Providing service in the home and through alternative facilities to people in need of care, including those who are poor and vulnerable, is one way we extend our ministry beyond hospital walls and reach individuals and families where and when they need us.”
“We are excited about this partnership and are looking forward to serving Ascension Health and its patients,” said William A. Sanger, Envision’s President and Chief Executive Officer. “Ascension has a history of developing innovative approaches to managing the care of patients, and we believe that partnering to deliver post-acute and home care services allows us to work together on improving patient outcomes and patient satisfaction. Furthermore, it expands Evolution Health’s footprint, providing opportunities for additional expansion and services in these markets.”
Ascension joins other major U.S. health systems with ambulatory deals as pressure to control health spending accelerates a technology-enabled shift toward more medical care delivered outside of hospitals.
“A number of our Health Ministries provide home care and related services today in their communities. We believe there is much to be learned by working with Evolution Health in a way that ensures the most effective and efficient care across our national health ministry in support of our Mission of serving all persons,” added Robert J. Henkel, FACHE, President and Chief Executive Officer, Ascension Health.
The new joint venture will initially include five of Ascension Health’s 23 communities, with the first phase of the agreement beginning at the end of 2014. Revenues in the first year of operation are estimated to be $75-100 million and expansion into additional communities is planned in a phased implementation over the next three years.
Ascension Health’s new joint venture will offer home care, infusion therapy and hospice in five Ascension Health markets with projected revenue of $75 million to $100 million in the first year. The deal is expected to go into effect at the end of the year.