Donovan Comments on Merger of LHC Group, Almost Family
17 November 2017
Modern Healthcare
Partner Christopher Donovan is quoted in a Modern Healthcare article, “LHC Group, Almost Family merger highlights growth of post-acute market,” which notes that many health systems are shedding their home health businesses and forming joint ventures with national for-profit operators.
Donovan said joint ventures have regulatory hurdles to clear in safe harbors, governance, credit and liquidity limits, but provide quicker access to market and avenues to alternative payment models. “Most providers will find that both acquisition and joint venture models work, but it is dependent on the market,” he said. “It’s important to deploy the correct strategy in the correct market.”
Donovan said joint ventures have regulatory hurdles to clear in safe harbors, governance, credit and liquidity limits, but provide quicker access to market and avenues to alternative payment models. “Most providers will find that both acquisition and joint venture models work, but it is dependent on the market,” he said. “It’s important to deploy the correct strategy in the correct market.”
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