Allegheny Health boosts home-health services with Klingensmith takeover
The move comes as many health networks are bolstering their home-based and outpatient services.
While Allegheny will be the majority owner of Klingensmith, John Hopkins Home Care Group -- part of Baltimore-based Johns Hopkins Health System -- will take a minority stake in the company.
Pittsburgh-based healthcare provider Allegheny Health Network on Wednesday said it acquired a majority stake in Klingensmith Healthcare, a Pennsylvania supplier of home medical equipment. Monetary terms of the deal were not disclosed, but Allegheny CEO John Paul said it would help the health system set up a more comprehensive slate of home-based services.
While Allegheny will be the majority owner of Klingensmith, John Hopkins Home Care Group -- part of Baltimore-based Johns Hopkins Health System -- will take a minority stake in the company.
“"Our strategy is to build a first-in-class, fully-integrated set of high quality, efficient and lower cost home based services that allow us to provide patients with the full continuum of care they may need outside the four walls of the hospital,” Paul said in a statement.
The move comes as many health systems are bolstering their home-based and outpatient services.
According to the company, Klingensmith serves about 9,000 patients across Western Pennsylvania, West Virginia and Ohio.
Allegheny, which comprises eight hospitals, 200 outpatient centers, a research institute and a group purchasing organization, recently formed an alliance with Celtic Healthcare to create a shared network of home-based and hospice services.
"Similar to our recently announced home health and hospice partner, Celtic Healthcare, Klingensmith has invested heavily in developing outstanding clinical platforms and advanced technological capabilities over the past several years," said Allegheny’s Senior Vice President of Diversified Services Brian Holzer, MD. "By merging these critical, existing capabilities with the considerable home and community-based care needs of AHN's growing patient population, we have the opportunity to establish a model program for out-of-hospital chronic disease management that greatly improves the patient experience and promotes clinical interventions at more effective and appropriate sites of care."
On Tuesday, audit firm KPMG said M&A activity in the healthcare field is expected to hold steady in 2015, based on a survey of finance professionals.
