Care Advantage acquires Allegiance Home Care
Care Advantage Inc. has acquired Allegiance Home Care, marking the 51-year-old home health provider’s 10th acquisition since it received private equity backing in January 2017.
Financial terms of the deal were not disclosed.
Richmond, Virginia-based Care Advantage, which is backed by New York-based PE firm BelHealth Investment Partners, provides medical and nonmedical in-home care to patients throughout Virginia, Maryland, Delaware and Washington, D.C., with 25 branch locations total.
Meanwhile, Virginia-based Allegiance has two branch locations, one in Sterling and one in Alexandria. It has been providing in-home personal care to patients since 2013.
The strategic acquisition will give Care Advantage a stronger presence in northern Virginia, particularly in and around Sterling, according to a press release announcing the news. Additionally, the Allegiance leadership team will stay on board and continue to oversee both offices.
The deal comes just a few months after Care Advantage made its largest ever acquisition in May, when the company acquired Capital City Nurses and its sister company, Coastal Home Care.
The recent activity “[fits] into our thesis of being one of the largest home care providers in the Mid-Atlantic region,” CEO Tim Hanold previously told Home Health Care News.
“We are continuing our trend of acquiring strong home care companies that are also cultural fits with Care Advantage,” Hanold went on to say in a press release announcing the Allegiance news.
BrightStar Care eyes Tennessee expansion
Pointing to demographics and a growing wave of interest from retirees, BrightStar Care is looking to expand its footprint in Tennessee.
The Chicago-based home care franchise is currently targeting development and looking for franchisee candidates in Clarksville, Memphis and Nashville. Currently, BrightStar has only four locations in the state, only one of which serves a sizeable city — Chattanooga.
“With a projected 28% increase of residents in the state who will be 65-plus between 2019 and 2030, there is a growing need to provide quality in-home care services,” according to a BrightStar press release announcing the news. “The demographics and aging population paired with Tennessee being named the No. 5 best state to retire in makes it an obvious and attractive market for BrightStar Care’s continued growth.”
On top of that, Tennessee — and specifically Nashville — is a health care hub, home to a number of key players in the post-acute care industry. Some examples include Brookdale Senior Living and hospice giant Compassus.
With more than 330 locations across the United States and Canada, BrightStar agencies offer medical and nonmedical care, as well as medical staffing.
Before BrightStar can add new locations across Tennessee, it must first find franchisees to operate them. Qualified candidates must have liquid assets of $200,000 or more, according to the press release.
St. Joseph’s Health Home Care expands geographically
Syracuse, New York-based St. Joseph’s Health Home Care is expanding into nearby Oneida and Madison counties, adding 1,919 square miles to its current coverage area.
The certified home health provider is part of St. Joseph’s Health, a regional nonprofit health care system also based in Syracuse. It’s the only hospital-based certified home health care agency in Central New York, which contributed to its strategic decision to expand, according to a press release announcing the news.
“Home care services are seriously lacking in the rural region, leaving patients underserved,” the press release says.
Additionally, St. Joseph’s Health Home Care’s expansion will create new jobs in the Central New York area, the company touted.