Amedisys Inc. (Nasdaq: AMED) announced Wednesday that it has signed a definitive agreement to divest its personal care division to HouseWorks.
As a company, Amedisys delivers a number of offerings, including home health, hospice, personal care and high-acuity care services. Home health and hospice are its two largest segments.
After Wednesday’s announcement, the plan is for the private equity-backed HouseWorks to take over Amedisys’ personal care division.
“Our personal care division was started with the sole mission to provide patients with a true continuum of care in the home,” Amedisys Chairman and CEO Paul Kusserow said in a statement. “We strongly believe in the value of personal care and this divestiture allows our personal care division to grow under a proven leader in the industry while Amedisys focuses our attention on our core business units of home health, hospice and high-acuity care.”
In fourth-quarter earnings disclosures, Amedisys reported that its personal care division brought in $15.9 million in revenue in Q4, and $61.4 million in revenue for all of 2022. The company also reported that billable hours and clients served fell by 9% and 2%, respectively, year over year.
Amedisys’ personal care footprint includes 13 care centers in three states.
Earlier this year, HouseWorks received a majority investment from InTandem Capital Partners LLC, a health care services-focused private equity firm.
The Massachusetts-based HouseWorks is a personal care company that also offers home-modification services.
HouseWorks CEO Michael Trigilio is the former president of Amedisys’ personal care division. Presumably, this made the deal more seamless and sensical for both sides. He is also the CEO of eCaring, which is now a part of HouseWorks network.
With Wednesday’s news, Trigilio will now be embedding yet another familiar home care division into the personal care company’s portfolio.
He told HHCN last month that the new influx of funds would allow HouseWorks to accelerate the company’s expansion efforts.
In the announcement, Amedisys announced that HouseWorks, in partnership with eCaring, will join the Amedisys personal care network and that a “care coordination partnership” will be formed.
Also on Wednesday, Amedisys announced a new agreement with BlueCross BlueShield of Tennessee to deliver home-based palliative care to the insurer’s millions of members.
This is a developing story. Please check back on homehealthcarenews.com the rest of the week for further updates.
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