Almost Family Acquires Health Assessment Company for $2 Million
Almost Family, Inc. (NASDAQ: AFAM) is acquiring a Florida-based technology company that provides in-home clinical assessments for $2 million in cash plus 260,000 shares of AFAM stock.
The company announced last week its planned acquisition of Jacksonville, Fla.-based Ingenios Health Co., a provider of tech-enabled in-home and in-facility health risk assessments on behalf of payers such as Medicare Advantage, Managed Medicaid, Commercial Exchange and long-term care.
With the acquisition, Almost Family gains entry into growing health assessment market as well as the nurse practitioner business, which the company notes is a “useful connecting point” that is integral to health care delivery.
“By using nurse practitioners to conduct comprehensive health assessments in patients’ homes and physician practices, we believe Ingenios will provide a foundational basis for improved care planning and delivery with meaningful cost savings,” said Almost Family Chairman and CEO William Yarmuth in a written statement.
The company plans to develop the Ingenios model in markets where it currently provides home health and Accountable Care Organization services, as well as in new markets where the two companies can develop together, Yarmuth added.
As health care reimbursement models evolve, Almost Family believes these new health assessment capabilities will enable it to provide a key element in the evolution of improved care planning and delivery.
Ingenios was founded on the principle that intelligent prevention is the key to providing “true care coordination and improved patient quality” to reduce the overall medical burden and improve patients’ quality of care, said Ingenios CEO John Shermyen in a prepared statement.
As a result of the acquisition, Shermyen will lead Almost Family’s Healthcare Innovations segment.
“We believe the evolution of the U.S. health care delivery system will ultimately require providers to accept financial risk for the clinical and cost outcomes we produce,” Yarmuth said. “We also believe assessment, care planning and innovative technology capabilities are essential as we position ourselves to succeed in that environment.”
Prior to founding Ingenios, Shermyen founded and served as the former CEO of LogistiCare Solutions, an access management company serving 13 million Medicaid and Medicare Advantage members in 43 states. Under his leadership, the company grew revenues of over $460 million primarily from capitated non-emergency medical transportation programs.
“We expect this transaction along with John’s long-track record of growing and developing innovative businesses such as LogistiCare to be real assets for us as we continue to evolve our business model to address the challenges of the rapidly changing U.S. health care delivery system,” Yarmuth stated.
Almost Family acquired 100% of the equity of Ingenios for approximately 260,000 shares of common stock plus $2 million in cash. Ingenios is expected to be mildly dilutive to earnings per share this year, and accretive in 2017.
Written by Jason Oliva