Home Care provider Almost Family (NASDAQ: AFAM) has made a strategic, $5.8 million investment in Imperium Health Management, a move the company says will provide entry into the accountable care organization space.
Through the investment, Almost Family has acquired a controlling interest in the health management company, which assists independent primary care physician practices in establishing and successfully operating ACOs made possible under the Affordable Care Act.
The timing is specific to the health care legislation, Almost Family’s executives say, as the company eyes a move in favor of ACOs.
“We are extremely excited to make this very strategic investment to participate in the ACO space,” said Chairman and CEO William Yarmuth. “We have always believed that home health plays a key role in containing costs. Now, by linking physicians with home health care through the ACO vehicle we believe we should be able to deliver even greater savings to the healthcare system.”
The partnership will allow Almost Family to connect more closely with physicians, Imperium’s executives explained.
“Our goal at Imperium is returning healthcare to the control of physicians. Like Almost Family, we believe integration of independent physician practices and home health at the local level and in patients’ homes is critical to ACO success. We simply must keep patients out of institutional settings and in their own homes to control costs and achieve savings against the CMS benchmarks,” said Gary Thompson, Imperium CEO and Gary Albers, Imperium COO in a joint statement.
Under the terms of the deal, Almost Family has acquired a 61.5% interest in Imperium for the total $5.8 million, with $3 million remaining in Imperium for general purposes. Additional investments may be allowed by Almost Family to fund Imperium’s development, according to the company’s filing with the Securities and Exchanges Commission.
Almost Family has a presence in 10 states currently, across 167 locations that provide both Medicare-certified care as well as personal care. Current locations are based in Florida, Ohio, Kentucky, Connecticut, New Jersey, Massachusetts, Missouri, Illinois, Pennsylvania and Indiana.
Written by Elizabeth Ecker