A non-profit senior housing provider has, in collaboration with a not-for-profit health system, acquired a co-ownership stake in a health care organization that serves older adults in Minnesota. The move exemplifies a growing trend of integration between senior housing and health care organizations.
Presbyterian Homes & Services (PHS) and health system Allina Health on Thursday jointly announced a newly formed collaboration in Genevive, which is focused on providing services to aging patients in long-term care, transitional care, and home-based settings. PHS is set to acquire a 50% stake in Genevive from its previous co-owner, North Clinic, while Allina is retaining its 50% ownership interest, according to the announcement. The deal is effective Jan. 1, 2019, and financial terms of the deal were not disclosed.
Based in St. Paul, Minnesota, PHS is a non-profit, faith-based organization which serves 25,000 older adults in 46 affiliated senior living communities in Minnesota, Wisconsin and Iowa, and through home and community services.
The collaboration is aimed at positioning Genevive as a new model for senior health care delivery between Allina, one of the state’s largest non-profit health systems, and PHS, one of the state’s largest non-profit providers of senior housing and services.
“Today, [a resident] might experience two or three different primary care teams, depending on what care setting you’re in,” Mike Bingham, vice president of PHS’ home-based services division and its health care initiatives, told Senior Housing News. “This allows us to combine our primary care efforts and Genevive’s very deep, deep expertise to deliver a flow of care as people move through our continuum.”
Through Genevive’s value-based contracts, PHS will access Medicare populations, including seniors served through Medicare Advantage (MA) and special needs plans (SNPs) provided by insurers such as UCare, Medica and Blue Cross Blue Shield.
PHS is far from the only senior housing provider seeing the appeal of linking up with health care organizations. The general concept is that senior housing and care providers can play a larger role in helping manage the large number of older adults being served by these health systems and payers.
Earlier this year Toledo, Ohio-based health system ProMedica made waves when it announced the acquisition of skilled nursing and home health giant HCR ManorCare, in a deal involving real estate investment trust (REIT) Welltower Inc. (NYSE: WELL). Other examples of this emerging trend include Evangelical Lutheran Good Samaritan Society’s plans to join forces with non-profit health system Sanford; and Utah’s first life plan community, Summit Vista, forging a close relationship with health system Intermountain.
“That trend has been going on for a while here in the Twin Cities, and I think it’s going to accelerate as the government moves more and more toward value-based payments,” Bingham said. “It’s our view that value-based payment is inevitable.”
Written by Tim Regan