Less than a year after Amedisys Inc. (Nasdaq: AMED) first entered the private duty space, the company is set to become the largest personal care provider in Massachusetts.
That will occur thanks to an acquisition agreement struck by a subsidiary of Amedisys, the second largest home health provider in the country.
The subsidiary of Baton Rouge, Louisiana-based Amedisys, Associated Home Care, has entered into an agreement to acquire all of the assets of personal care provider Home Staff LLC from Fallon Health and VNA Care Network, according to a press release Monday.
“Building our Personal Care Division is important in helping Amedisys achieve its long-term strategy,” Mike Trigilio, president of Amedisys Personal Care, told Home Health Care News. “By expanding our services and capabilities across the home health continuum, we can improve the continuity of care our patients receive as their clinical needs change over time.”
Across three lines of business, Amedisys now operates in over 30 locations throughout Massachusetts, Trigilio added.
“This transaction is exciting not only because it enlarges our personal care footprint in Massachusetts, it also positions us for a future collaboration with an innovative payor to help manage their most vulnerable patients,” Paul Kusserow, president and CEO of Amedisys, said in the press release. “We look forward to partnering with Fallon Health to show the value that our care can bring to programs such as PACE (Program of All-Inclusive Care for the Elderly), SNPs (Special Needs Plans) chronic diseases management and population health management.”
Home Staff is headquartered in Worcester, Massachusetts and provides private home care to 3,500 clients every year throughout Massachusetts. The company collects revenue of $10.5 million annually.
The transaction was facilitated by Associated Home Care, which was acquired by Amedisys in March of this year. The acquisition of Associated Home Care also marked Amedisys’ entry into the private duty sector.
“Once this transaction is completed, collectively, the Amedisys’ Personal Care Division (AHC) will have 2,500 aides providing care to 15,000 clients annually at homes throughout Massachusetts—making us the largest personal care provider in the state,” Trigilio said in the press release. “Closing this transaction allows us to focus on our future overall health care strategy, which is to bridge the gaps in continuum, invest in technology and to work hand in hand with payors to create solutions for the changing health care environment.”
Two areas that the company will focus on include demands for specific types of caregivers as well as technology, Trigilio told HHCN.
“We want to become the employer of choice in our industry in Massachusetts. There is a focus on recruiting and retaining the best talent to provide outstanding care,” he said. “We are also currently developing in-house technology to give us better analytics and insight into the home, that in turn enables us to provide higher quality care.”
Looking forward, the goal is to add personal care in markets where Amedisys has a strong home health and hospice presence, which include Florida, Tennessee, Pennsylvania and Connecticut, Trigilio added.
The transaction is anticipated to close on February 1, 2017. The terms of the deal were not disclosed.
Written by Alana Stramowski