Family Resource Home Care — one of the largest independent home care companies in the Pacific Northwest — is positioning itself for further growth.
On Monday, the Liberty Lake, Washington-based Family Resource Home Care announced a new investment partnership with Great Point Partners, a health care-focused private equity group headquartered in Greenwich, Connecticut.
Terms of the growth recapitalization were not disclosed.
Jeff Wiberg, CEO of Family Resource Home Care, has hinted at his company’s aggressive growth plans ever since it merged with Family Home Care in November 2018. While the business has steadily expanded since then, COVID-19 now presents an opportunity to accelerate that growth push.
“We are looking forward to partnering with Great Point, [which brings] additional expertise and financial backing to help execute on our vision to expand our services,” Wiberg said in a press release announcing the news. “The COVID crisis has further revealed both the fragmentation and the opportunities within the home care industry.”
Since spring, many smaller agencies have found it increasingly difficult to stay in business without the resources and efficiencies that scale brings, the CEO noted.
Specifically, home care operators have faced rising costs of doing business, namely in the form of personal protective equipment (PPE) and other infection-control supplies.
In addition to inventory costs, many agencies have also struggled with staffing, though job postings in the home care market are down compared to 2019.
Family Resource Home Care currently has nine established locations across Washington and Idaho. With a total of 850 employees and more than 1,000 clients, the company provides personal care services and assistance with activities of daily living (ADLs), plus support with dementia and end-of-life care needs.
Founded in 2003, Great Point Partners is a health care investment firm with about $2 billion of equity capital currently under management.
The PE group has provided growth equity, growth recapitalization and management-buyout financing to more than 100 health care companies, with investments in the United States, Canada and Western Europe.
The non-medical home care industry represents “a significant growth opportunity,” Great Point Partners Managing Director Rohan Saikia said in the press release. That’s especially true considering the U.S.’s rapidly aging population and a widespread desire to age in place.
“We considered dozens of home care agencies for potential investment, but none compared to the quality of Family Resource,” Saikia said “We are excited to help them increase the number of clients who benefit from their services, while also advancing a solution for ever-rising health care needs and costs in this country.”
As a home care company, Family Resource Home Care has become known as a leader in the Medicare Advantage (MA) conversation, with Wiberg most recently speaking at the Home Health Care News Medicare Advantage Summit in June.
“I continue to be very bullish about this whole topic,” he told HHCN as the time. “I think it’s going to require a lot of education and outreach to the MA plans, helping them understand what home care offers. It’s going to require collecting some of our own data.”