PurposeCare – a relatively new and quickly growing home-based care provider – has acquired the St. Joseph Michigan-based Home Sweet Home In-Home Care.
Backed by Lorient Capital, PurposeCare is a provider of both clinical and non-clinical home-based care. Since it launched in 2021, the company has grown through the acquisitions of other home-based care providers across the Midwest.
“We want to build depth and density in the markets we’re in, that’s our strategy,” PurposeCare CEO Rich Keller told Home Health Care News. “We see a market for providing care to [this population], the vast majority of which are dually eligible for Medicare and Medicaid. This is about building a comprehensive delivery system for those people.”
The Chicago-based PurposeCare cares for about 3,000 patients per week. After the Home Sweet Home deal, its gaining 400 more patients and 300 caregivers.
PurposeCare’s portfolio also includes Purpose Home Health, Alliance Home Health Services, A1 Home Health Care and A1 Nursing Care, Newsome Home Health Care and Honor Home Health. Its coverage spans four states: Indiana, Illinois, Ohio and Michigan.
PurposeCare’s clinical and business strategy are intertwined. The company provides both personal care and home health care, and can therefore layer on that clinical care when a personal care patient’s condition worsens, and also vice versa.
“We know these patients as much as anybody else – we’re in their homes multiple days per week,” Keller said. “In fact, we know them better than anybody. Our ability to manage the care wholly is the position we want to be in.”
Right now, PurposeCare’s business mix slightly favors Medicaid-based personal care. That will likely be the case moving forward, and Home Sweet Home mostly deals with patients in need of personal care.
On Keller’s end, he has been a health care executive for over two decades. He was previously the president of All Metro Health Care, a personal care provider. He then worked with Simplura Health Group after it acquired All Metro Health Care, and then with Modivcare (Nasdaq: MODV) after it acquired Simplura.
After his time with Modivcare, he found a partner in Lorient Capital that was willing to partner with him on the idea for PurposeCare. In less than two years, the company has made some significant strides.
The whole idea was building a company that could get in front of poor outcomes, Keller said.
“I found a partner in Lorient Capital, they were looking to build out a post-acute strategy,” Keller said. “The timing was perfect. We started to work together informally in June of 2021 and then made our first platform acquisition in Purpose Home Home Health in December of 2021.”
After establishing a footprint in four Midwestern states, the goal is to build depth and density in those markets moving forward. But, more importantly, the goal is to build out the full continuum in communities to help patients avoid adverse outcomes.
“We’re always looking for services that that can help us provide a complete continuum of care in the community,” Keller said.