The Lorient Capital-backed PurposeCare has acquired three more Midwestern home-based care agencies. In total, the company has made seven acquisitions over the last year.
Its latest moves include: acquiring the assets of A/Abiding Care-Elder Bridge (AAEB), a private-pay home care agency in Illinois; acquiring equity interests in Michiana Home Care, which provides home health care via two locations in Michigan and Indiana; acquiring the equity interests of Queen City Skilled Care, another home health agency based in Ohio.
“I think strategically these [businesses] are, obviously, in the geographies that we’re in,” PurposeCare CEO Rich Keller told Home Health Care News. “We’re building out a platform to coordinate care between home care and home health care. We’ve got this footprint in the Northeastern corner of Indiana, plus that Southwestern corner of Michigan. We’re continuing to build that Ohio footprint – Cincinnati is a key market for us. And these are high-quality agencies.”
Based in Chicago and established in 2021, PurposeCare provides both home care and home health care in Illinois, Ohio, Michigan and Indiana. It has a specific focus on the dual-eligible population. The company provides care to more than 4,000 patients per month.
Last March, the company acquired the St. Joseph Michigan-based Home Sweet Home In-Home Care. In July, it announced that it had acquired three more agencies: the Indiana based Scott’s Home Healthcare and Attentive Personal Care, as well as the Ohio-based Choice Nursing Care & Home Health.
It now has about 26 total locations in its network.
With AAEB, the company is delving into private-pay home care – in a meaningful way – for the first time. Keller believes it’s a good opportunity to diversify payer sources.
“The primary payer for home care is Medicaid, and that’ll be the case for us as well,” Keller said. “But obviously there are other payer sources, and it’s nice to have hands in other ones as well.”
In 2024, the company plans to continue growing. It also could enter in new states, though Keller didn’t disclose any specifics.
He did add, however, that entrance into new states will be dependent on the environment for home- and community-based services.
“We want to build depth and density within the four states that we’re in, but to the extent we can find other opportunities in other states, I can envision us entering another state or two over the next year or two,” Keller said. “I wouldn’t say it’s a number of acquisitions that we want to hit, it’s really going to be opportunistic based on where we can find businesses that are strategic.”
The goal in the new year will also be delivering on the strategy that Keller laid out in 2021 when the company launched: to provide coordinated care between home health care and home care.
“This is year three, and it’s really about execution,” he said. “We now have the opportunity to provide coordinated care in every market that we’re in.”