SYRACUSE — St. Joseph’s Health on Sept. 28 announced it has signed an agreement to sell Franciscan Companies, its durable medical equipment (DME) company, to AdaptHealth, a national network of medical-equipment companies. St. Joseph’s Health declined to disclose the sale price in the transaction that will close Oct. 31, per an email response to a […]
SYRACUSE — St. Joseph’s Health on Sept. 28 announced it has signed an agreement to sell Franciscan Companies, its durable medical equipment (DME) company, to AdaptHealth, a national network of medical-equipment companies.
St. Joseph’s Health declined to disclose the sale price in the transaction that will close Oct. 31, per an email response to a CNYBJ inquiry.
Franciscan Companies is an affiliate of St. Joseph’s Health. AdaptHealth (NASDAQ: AHCO) is headquartered in Plymouth Meeting, Pennsylvania, near Philadelphia.
AdaptHealth has operations in 39 states. The company’s mission is similar to that of Franciscan Companies in helping patients to “live their fullest lives — out of the hospital and in their homes,” St. Joseph’s Health said.
In addition to 36 employees at the North Syracuse–based Franciscan Health Support offices, this sale will also impact 10 employees who are based in Binghamton at the Lourdes Health Support location, St. Joseph’s Health said.
“The decision to sell Franciscan wasn’t made lightly, as it has been an important part of the St. Joseph’s Health family since 1983,” Janet Ready, COO at St. Joseph’s Health, said in a statement. “This move will allow St. Joseph’s Health to focus on our core business of acute, ambulatory/outpatient, and primary care.”
In the email, Ready told CNYBJ that St. Joseph’s Health used a request-for-proposal process to vet interest, and the organization selected the “most appropriate” buyer based upon criteria set and the offer price.
St. Joseph’s Health noted that the health-care environment has had “significant changes” in recent years. Debate over the type and structure of health services in the country, continual decreases in reimbursement, rising costs, and demand for greater efficiency are just a few of the challenges that health-care organizations face.
“These changes are impacting everyone,” St. Joseph’s Health added.
When asked if the COVID-19 pandemic played any role the St. Joseph’s Health pursuit of the sale, Ready replied, “The financial decisions did not directly play a role as consideration to sell the DME company preceded COVID. However, COVID did accelerate our decision as we recognized a need to focus more closely on our core service offerings, such as inpatient, ambulatory, and primary care. AdaptHealth’s primary business is in the DME space and its mission most closely aligned with Franciscan’s.”
The Franciscan Companies offices and warehouses will remain in their current locations in Onondaga and Broome Counties and be operated by AdaptHealth beginning Nov. 1.
Most Franciscan employees have been offered positions with AdaptHealth. Ready told CNYBJ that, as of Sept. 29, it appears four employees won’t be joining AdaptHealth. Some of those employees could apply for openings at St. Joseph’s Health, she noted.
Beginning Nov. 1, Franciscan Health Support and Lourdes Health Support will become AdaptHealth New York. Moving forward, St. Joseph’s Health will utilize AdaptHealth’s services as a preferred provider for all DME.
AdaptHealth is “well-positioned” to provide Franciscan and Lourdes Health Support customers with services and “access to innovative technology,” St. Joseph’s Health contends.