Compassus: Private equity’s joint venture playbook

The document analyzes the growth of Compassus, a for-profit home-based care provider jointly owned by TowerBrook Capital Partners and Ascension Health, as a model for private equity expansion into nonprofit healthcare. It details joint ventures with systems including Providence, Bon Secours Mercy Health, and OhioHealth, highlighting the strategic shift toward home-based care. The text specifically examines the Providence partnership, noting that while Providence sought to reduce operating losses and manage services outside its 'core focus', the move faced opposition from nursing associations over concerns regarding patient care quality, workforce benefits, and access for underserved populations.

• Compassus is a for-profit provider of infusion, palliative, and in-home hospice care operating in 33 states with approximately 10,000 staff across more than 300 locations. It is currently jointly owned by the private equity firm TowerBrook Capital Partners and the faith-based health system Ascension Health.
• Private equity firms have targeted hospice agencies due to the potential for consolidation and consistent Medicare payments. Research indicates that profit maximization in this sector can lead to patient harm through cost-cutting and fraud, such as enrolling ineligible patients to collect per diem payments.
• Compassus utilizes a joint venture model with nonprofit systems, including Ascension, OhioHealth, and Bon Secours Mercy Health. These ventures typically feature co-branding and boards of directors with equal representation from both partners.
• The joint venture between Providence and Compassus involves Compassus acquiring 50% of membership interests in Providence's home-based hospice and home health operations in California, Oregon, Washington, Texas, and Alaska. The growth strategy relies on two pillars: increasing patients from the Providence ecosystem and expanding community-based referral sources.
• Providence pursued the Compassus joint venture because it found managing home-based services 'increasingly challenging' and outside its 'core focus'. The system reported operating losses, with margins improving from -6.4% in 2022 to -2.1% in 2024.
• The Providence-Compassus partnership faced significant opposition from the Oregon Nurses Association and the Washington State Nurses Association. Concerns include the potential for increased patient loads, reduced care quality, and the loss of employee benefits such as pensions, tuition reimbursement, and accumulated sick time.

APA

Private Equity Stakeholder Project (2026). Compassus: Private equity’s joint venture playbook. https://pestakeholder.org/news/compassus-private-equitys-joint-venture-playbook/

Chicago

Private Equity Stakeholder Project. Compassus: Private equity’s joint venture playbook. 2026. https://pestakeholder.org/news/compassus-private-equitys-joint-venture-playbook/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Compassus: Private equity’s joint venture playbook |date=29 July 2026 |url=https://pestakeholder.org/news/compassus-private-equitys-joint-venture-playbook/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2026compassus, author = {{Private Equity Stakeholder Project}}, title = {{Compassus: Private equity’s joint venture playbook}}, institution = {Private Equity Stakeholder Project}, year = {2026}, month = jul, url = {https://pestakeholder.org/news/compassus-private-equitys-joint-venture-playbook/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }