New Contessa, Henry Ford Health System Venture to Offer Palliative Care

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Contessa has started a joint venture in Michigan with Henry Ford Health System to provide high acuity home care services as well as palliative care. Contessa is a subsidiary of Amedisys (NASDAQ: AMED), which acquired the company in June in a $ 250 million deal.

Contessa has seen substantial growth during the COVID-19 pandemic as more healthcare has moved to homes due to the reluctance of some patients to seek institutional care, and the deadly virus continues to strain the community. hospital capacity.

“There has never been a more important time for us to collaborate with our patients and members throughout their healthcare journey and give them the choices they want and need,” said said Wright Lassiter, III, President and CEO of Henry Ford Health System. . “We are thrilled to partner with Contessa for this opportunity to build on our strong home health care foundation and further integrate the care and coverage we provide to improve the experience and outcomes our clients deserve. “

Contessa has developed a risk-based model under the Home Recovery Care brand which it applies to its hospital and skilled nursing home services. This caught the attention of Amedisys, which has been working to develop its high acuity home care business lines.

The deal’s multiple was 3.9 times 2022 revenue, compared to 6x for similar companies. The transaction placed Amedisys among the first in the home care space to offer inpatient or skilled home care nationwide.

Amedisys began dipping his toes into higher acuity care before the Contessa deal. Hospice News sister site Home Health Care News reported in April that the company was launching an SNF at-home pilot program.

Contessa has a strong track record in reducing hospital readmissions. The model reduces readmission rates by 44%; decreases the average length of hospitalization by 35%; and has a patient satisfaction score of over 90%, according to a company statement.

A key component of the new joint venture is Contessa’s Palliative Home Care business, which offers a combination of in-home and virtual services.

Partnerships with the hospital system have been a priority for Contessa in 2021. In February, the company launched a palliative care business in partnership with the Mount Sinai Health System in New York City, also known as Palliative Care at Home. The company is said to have a pipeline for similar partnerships that includes more than 100 hospitals in 28 states, according to a statement from Amedisys.

Henry Ford Health System is a not-for-profit academic and integrated health system comprising five acute care hospitals and over 250 additional care sites providing services related to cancer and orthopedics, sports medicine, health behavioral and emergency care, among others.

“Henry Ford Health System is committed to putting its patients at the center of its care delivery, and Henry Ford Hospital Care at Home is a natural extension of that passion,” said Travis Messina, CEO of Contessa. “This model personalizes care for acute and chronic disease, while reducing costs and increasing patient satisfaction. “

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