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Addus acquires another home health provider
In August, Addus HomeCare Corporation (Nasdaq: ADUS) said that it was looking to make some larger acquisitions in the back half of this year and in 2023.
It’s not totally clear whether this is one of them, but on Oct. 3, the company announced that it had acquired the Chicago-based Apple Home Healthcare.
Financial specifics of the deal were not disclosed, but Addus did say in its press release that the Chicago-based Apple has about a 450-patient census and annual revenues of approximately $10 million. The company is a medicare-certified home health agency.
“We are pleased to announce the addition of Apple to our expanding operations in the greater Chicago area, one of our largest markets,” Addus Chairman and CEO Dirk Allison said in a press release. “This acquisition is commensurate with our growth strategy to leverage our strong personal care presence and add clinical services.”
As a primarily personal care services company, Addus is somewhat insulated from any looming rate changes in the Medicare fee-for-service space. At the same time, it has been looking to strategically add home health care in markets that it already has personal care and hospice footprints.
“Together with our recent acquisitions of the operations of Summit Home Health and JourneyCare hospice services in the greater Chicago area, we have expanded our market coverage in both segments of clinical care,” Allison continued. “We are excited to leverage the strength of our combined operations and support more patients and families in this market.”
The Frisco, Texas-based Addus currently provides home-based care services to approximately 45,500 consumers through 206 locations across 22 states.
The company funded the acquisition through a combination of cash on hand and its revolving credit facility, according to the release. The acquisition is expected to be immediately accretive to financial results. It was finalized on Oct. 1.
Enhabit Inc. acquires Caring Hearts Hospice
Enhabit Inc. (NYSE: EHAB) has acquired the Texas-based Caring Hearts Hospice. The deal will give Enhabit four more Texas hospice locations in in Gun Barrel City, Mineola, Palestine and Quinlan.
“We are thrilled to continue to grow Enhabit’s hospice service line and maintain our goal of supporting patients throughout their health care journey, in the comfort of home,” Jeanne Kalvaitis, EVP of hospice at Enhabit, told Home Health Care News in a statement. “The acquisition of Caring Hearts Hospice enables Enhabit to reach even more patients and families in need of high-quality, compassionate care. We continue to have a strong focus on our expansion efforts and look forward to all that lies ahead.”
Enhabit declined to share financial details on the deal.
The Dallas-based company, which recently spun off from Encompass Health (NYSE: EHC), has 251 home health locations and 100 hospice locations across 34 states.
“We are excited to welcome the Caring Hearts Hospice employees to Enhabit,” Enhabit President and CEO Barb Jacobsmeyer said in a statement. “Their passion for and dedication to providing high-quality care to patients and their loved ones is a perfect fit for our team as we continue to expand our hospice service line.”
Choice Health at Home acquires Instant Care of Arizona
The rapidly growing Choice Health at Home has expanded its footprint by acquiring Instant Care of Arizona, which is an in-home personal care provider.
The deal enters Choice – a home health, rehab and hospice services provider – further into the personal care services market.
“The acquisition of Instant Care of Arizona, and entry into this segment, aligns with our mission at Choice,” Choice CEO David Jackson said in a statement. “The business has a great leadership team, and the services they provide truly enhance the life of each client.”
The Instant Care of Arizona acquisition is the second of this year for Choice. The company made 10 transactions last year, primarily expanding its Southwestern U.S. footprint.
“Our journey at Choice has always been about creating a continuum of care in the home,” Choice Health at Home President Trina Lanier said in a statement. “This is a great step and one that establishes an excellent start in the state of Arizona.”
Jet Health acquires Trio Home Health Care and Hospice
The Texas-based Jet Health has acquired Trio Home Health Care and Hospice.
The deal gives Jet Health 10 total locations in Texas and 500-full time workers. Financial terms of the deal were not disclosed.
“This latest acquisition fills our quest to expand our geographic footprint within our primary service areas,” Jet Health CEO Stacie Bratcher said in a statement shared with HHCN sister site Hospice News. “Texas marks the state with the most Jet Health-branded enterprises and is also home to our corporate headquarters. Now, with our 10 locations statewide, coupled with a strong, solid network of caregiving professionals throughout all our service areas, we are well-positioned to meet the home health care and hospice needs of Texans.”
On its end, Jet Health is a home health and hospice provider with locations in Texas, Colorado, Idaho and New Mexico. Trio is based in Denton, Texas.
Bratcher explained Jet Health’s growth strategy to HHCN last November.
“Jet Health was really founded based on the thesis of rolling up smaller home health and hospice companies into more of a platform that could leverage the back-office functions and best practices of those agencies that were performing extremely well in their communities,” Bratcher said.
Frontpoint Health’s PE Backers announce recapitalization of the company
Frontpoint Health is a new home health and hospice provider that is specifically catering to the Medicare Advantage (MA) population.
On Thursday, its private equity backers – the Park City, Utah-based Tacoma Holdings and the Salt Lake City, Utah-based Cimarron Healthcare Capital – announced the recapitalization of the business.
Specifically, the transaction will “provide capital to support growth for Frontpoint,” according to a release.
“I’m grateful for the trust of my new partners at Cimarron and Tacoma,” Frontpoint CEO Brent Korte said in the release. “I’m excited to begin building a differentiated platform focused on connecting the economies of scale of larger platforms with the benefits of local agencies, to thrive as a low-cost provider and to target the growing Medicare Advantage market.”
Tacoma’s portfolio also includes the DME supplier JQ Medical Supply. Meanwhile, Cimarron’s other investments include the behavioral health provider Ascent and Infusion Management, among a few others.