Addus HomeCare Corporation (NASDAQ: ADUS), a provider of home and community-based services, announced this week it has acquired Priority Home Health Care, Inc., effective Jan. 1.
Headquartered in Cleveland, Ohio, Priority Home Health Care operates six offices in the Cleveland, Akron and Columbus areas, which are expected to produce revenues of approximately $11 million for the year ended Dec. 31, 2014. Addus anticipates the transaction to be accretive to earnings in 2015.
The acquisition “substantially expands” the company’s footprint in Ohio, a state that Addus first entered a year ago through the acquisition of two locations from Medical Services of America, according to Mark Heaney, Addus president and CEO.
“Ohio is on the forefront of transitioning its Medicaid long-term care programs to managed care organizations, and all of Priority’s offices are located in areas designated for participation in the state’s dual eligible demonstration pilots,” Heaney said in a written statement. “This transaction is consistent with our overall acquisition strategy of both expanding our footprint in existing states and focusing our efforts in states implementing or planning the near-term transition of care for this population to MCOs, which we believe represents a significant long-term growth opportunity for Addus.”
Written by Emily Study