Signature Healthcare at Home Acquires Home Health Division, Nova Leap Eyeing Home Care Deal

Signature Healthcare at Home acquires Samaritan Health Services Home Health

As more hospitals and health systems continue to outsource their home-based care offerings, Signature Healthcare at Home has acquired Samaritan Health Services’ home health division.

Wilsonville, Oregon-based Signature Healthcare at Home provides home health, hospice, personal home care, palliative care and rehabilitation therapy to patients in the Pacific Northwest.

Also based in Oregon, Samaritan Health Services is a nonprofit, healthcare system with five hospitals throughout the state. The company’s decision to discontinue home health services — which it provided to patients in Oregon’s Benton, Lincoln, and Linn counties — was motivated largely by financial losses, President and CEO Doug Boysen said in a press release announcing the news.

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“It is a challenge to recruit and retain the specialized workforce needed,” Boysen said. “In addition, the size and scope of our three-county service area requires significant staff travel time and prevents us from leveraging economies of scale. The result of all these factors is annual financial losses over multiple years, with no indication that the situation will improve.”

Signature Healthcare at Home took over Samaritan’ home health division March 1, ultimately expanding their footprint in coastal Oregon. All patients transitioned to Signature Healthcare at Home, unless they chose another provider.

The acquisition comes just months after Signature’s parent company Avamere — a large provider of senior housing, home health, hospice and other care services across the acuity spectrum — announced an internal reorganization to streamline its post-acute care network.

The goal is to smooth patient transitions as they move throughout the continuum of care and between Avamere’s different segments.

Nova Leap eyes acquisition that could grow revenue 11%

Nova Leap Health Corporation (TSXV: NLH), an international personal home care and support services provider, is moving forward with plans to acquire a home care services company in Eastern Canada that would increase its annualized recurring revenue by 11%.

In February, it executed a letter of intent to acquire the company for $564,000.

Though unnamed, the Canadian home care services agency is “well-established” and reported unaudited revenues of approximately $1.82 million and had adjusted EBITDA of $0.127 million in 2018, according to a release announcing the deal.

Nova Scotia-based Nova Leap — which also operates in the U.S., with locations in Vermont, New Hampshire, Rhode Island and Massachusetts — first went public in 2016. Since then, the company has scaled by acquiring, managing and building home care services companies.

In October, Nova Leap finalized its acquisition of New Hampshire-based Living at Home SeniorCare, after making several other deals in New England earlier that year.

Meanwhile, its most recent aforementioned deal in Eastern Canada is expected to close toward the end of April.

Upon closing, Nova Leap will pay the acquisition target $188,000 cash and $376,000 in the form of a promissory note repayable over a five-year period, according to the press release.

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