Blue Wolf, Peloton Equity Launch ClearSky Health; Perry Memorial Hospital Acquires In-Home Care VNA

Blue Wolf Capital makes another post-acute care move

As a response to the growing demand for integrated delivery models in the post-acute care sector, private equity firms Blue Wolf Capital Partners and Peloton Equity have partnered to launch rehabilitative health care provider ClearSky Health.

Austin, Texas-based ClearSky Health plans to develop and acquire in-patient rehabilitation facilities (IRFs), as well as post-acute services companies.

For now, ClearSky Health will be entirely devoted to the IRF space, a spokesperson told Home Health Care News, though Blue Wolf has extensive experience in home health, home care and hospice as well.

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“The post-acute care sector in the U.S. is evolving towards integrated delivery models and value-based care, and we believe IRFs are well-positioned to play an important role in this transformation,” Ted Lundberg, co-founding partner at Peloton Equity said in a press release announcing the news.

New York-based Blue Wolf made major moves last year when the private equity firm backed a three-way merger that created one of the largest home health providers in the U.S. The combined company — which operates under the name Elara Caring — provides care for more than 65,000 patients across 16 states.

“Blue Wolf’s commitment to ClearSky Health reflects our strategy of continuing to invest in the post-acute care industry,” Jeremy Kogler, a partner at Blue Wolf Capital, said in the release. “We are actively seeking opportunities to develop and acquire additional assets in this highly fragmented and growing market.”

Adam Blumenthal, founder and managing partner at Blue Wolf, recently participated on an M&A panel at HHCN’s Capital + Strategy Forum in Washington, D.C.

During the panel, Blumenthal provided an update on Elara Caring, noting that the bulk of Blue Wolf’s efforts were currently focused on completing integration and teaming up with states policymakers on efforts related to opioid addiction.

Darby Brockette — who most recently served as the chief executive officer of Ernest Health — will serve as the CEO of ClearSky Health.

Perry Memorial Hospital purchases In-Home Care VNA

In order to expand into the at-home health arena, Perry Memorial Hospital, a Princeton, Illinois-based health care organization, will take over ownership of In-Home Care VNA.

Also based in Princeton, In-Home Care VNA provides home health services including skilled nursing and rehabilitation.

Under terms of the acquisition, In-Home Care VNA will rebrand as Perry Home Care beginning in June. Perry Home Care will serve residents in Bureau, Putnam, Marshall, LaSalle, Lee and Stark counties in Illinois.

“Perry Home Care providing home health aligns with the Perry Mission to provide compassionate, quality health services to the people and communities we serve,” Annette Schnabel, president and CEO of Perry Memorial Hospital, told the Bureau County Republican.

Workforce challenges and financial struggles have increasingly prompted several hospitals to turn to outside home health agencies to either replace, reinforce or manage their internal operations.

From 2016 to 2018, 177 hospitals or health systems acquired home health agencies, according to proprietary data from The Braff Group.

CIT leads $425 million senior credit facility

CIT Group Inc. (NYSE: CIT) and its Healthcare Finance business have led a $425 million senior credit facility on behalf of AdaptHealth LLC. The financing is the latest in a series of CIT-led moves aimed at supporting AdaptHealth’s growth.

AdaptHealth — which has over 1,000 employees — is an Oaks, Pennsylvania-based home medical and respiratory equipment provider with 160 locations in 36 states. More than 1 million patients annually use in-home equipment provided by the company.

New York-based CIT is a financial holding company that provides services to commercial and individual customers. The AdaptHealth credit facility will be used to refinance existing debt and provide access to growth capital.

The new financing will also be used to support the entry of BlueMountain Capital Management LLC, a diversified alternative asset manager, as a minority investor in AdaptHealth.

“We greatly appreciate the expertise and agility that CIT has demonstrated in supporting our financing and banking needs as we have continued to expand our customer base and geographic footprint,” AdaptHealth CEO Luke McGee said in a press release announcing the news.

Varsity Healthcare Partners completes Angels of Care partnership

Varsity Healthcare Partners, a private equity firm focused on health care services, has completed its growth equity investment in Sherman, Texas-based Angels of Care. Investment terms were not disclosed.

Angels of Care provides long-term home health services to pediatric patients and has over 3,000 clinicians across 18 locations.

Under terms of the partnership, Varsity will provide the capital to fuel Angels of Care’s continued growth.

Jessica Riggs will remain in her role as CEO, along with the current management team, which will maintain all respective roles.

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