LHC Group finalizes joint venture
Lafayette, Louisiana-based LHC Group Inc. (Nasdaq: LHCG) and Geisinger Home Health and Hospice have finalized their joint venture agreement, initially announced at the end of February.
Under the agreement, LHC Group will take majority ownership of Geisinger’s home health and hospice services in the Pennsylvania locations of Danville, Bloomsburg, Wilkes-Barre, Northumberland, Montoursville, Lewistown, Lewisburg and Camp Hill. LHC Group will assume management responsibility in addition to majority ownership.
Apart from the Pennslyvania locations, LHC Group and Geisinger are also on track to complete their AtlantiCare JV in New Jersey by June 1, according to the organizations.
Upon the closing of each, the JVs with Geisinger and AtlantiCare will reportedly add a combined 13 new home health and hospice locations to LHC Group’s footprint.
LHC Group and its 32,000 employees deliver home health, hospice, personal care and facility-based services to patients throughout 36 states. LHC Group is the preferred in-home health care partner for 340 hospitals.
BrightStar owner acquires Harmony Home Care
In-home care franchise company BrightStar Care is making progress on a growth strategy of converting existing, independent home care agencies into its system.
Most recently, a BrightStar location in the Sacramento, California, market acquired Harmony Home Care, a deal that went into effect on April 1. Harmony Home Care also operated in the Sacramento market.
Terms of the deal were not disclosed.
Chicago-based BrightStar is a national private-duty home care and staffing franchise with more than 330 locations providing both medical and non-medical services to a mix of clients. BrightStar reported a total of 27 territory expansions last year and is shooting for roughly 30 throughout 2019, CEO and founder Shelly Sun previously told Home Health Care News.
BrightStar Care owner Ignacio Cespedes — who was named BrightStar Care’s 2018 franchisee of the year — spearheaded the Harmony Home Care acquisition.
“This deepens BrightStar’s commitment to Sacramento, combining one of our very best franchisees with the best of Harmony’s model,” Sun said in a statement. “In addition, our national account partners — the biggest insurance companies, pharmacies, infusion services providers and third-party administrators in the country — now have new options for delivering care in the Golden State.”
Nova Leap announces new acquisition
Canada-based Nova Leap Health Corp. (TSXV: NLH) has executed a definitive agreement to acquire a home care services company. Under terms of the agreement, dated April 1, Nova Leap will acquire the home care company for $564,000.
Nova Leap did not disclose the name of home care company, which is located in eastern Canada.
The target home care company reported unaudited revenues of approximately U.S. $1.82 million for the year ended Dec. 31, 2018. Nova Leap projects the acquisition to be immediately accretive.
Upon closing of the acquisition, which is targeted toward the end of April 2019, Nova Leap’s annualized recurring revenue is expected to increase by approximately 11%.
Nova Leap currently has operations in Vermont, New Hampshire, Massachusetts and Rhode Island, as well as Halifax, Nova Scotia. The company has been active on the M&A front.
In October 2018, for example, Nova Leap finalized its acquisition of New Hampshire-based Living at Home SeniorCare. The closing followed several other deals in New England last year.
Nova Leap achieved 877% revenue growth in 2018, according to the company