Coming off the acquisition of Intrepid USA’s hospice operations in Missouri and Texas, M&A will continue to be a major growth driver for New Day Healthcare.

For New Day, the most recent acquisition will allow the company to have the full care continuum in both markets. This is imperative to the company’s ability to be a one-stop-shop for care delivery.

“One of the things that we committed to doing when we formed New Day in 2020 was to burn the ships and do things differently,” New Day CEO G. Scott Herman told Home Health Care News. “Think about how we manage patients in a longitudinal way, and not just across episodes, or moments in time, or incidents. In order to do that, we had to have a full care continuum in the markets that we serve.”

Founded in 2020, New Day has roughly 30 locations across Texas, Missouri, Kansas and Illinois. The company offers a variety of home-based care services. New Day serves nearly 120,000 patients annually.

Intrepid USA’s hospice assets aren’t the only deal on New Day’s plate. The company is slated to close more transactions over the next several months.

Currently, New Day has integrated 11 acquisitions.

Since New Day’s launch, the company has been an active presence in the M&A space. The company remains bullish when it comes to dealmaking, according to Herman.

“One of the things we focused on was being able to build a comprehensive data system that would allow transaction information from any EMR or data system to flow into one common body, so we could analyze that, do predictive analytics, do source mapping and do pattern analysis,” he said. “That’s our Carelytics system, which sits over the top of 17 different data systems. Carelytics allows us to really begin to focus on the demographics in the areas that we serve and expand our entire continuum, which means in places where we don’t have assets that serve our patients in a longitudinal way, we’re looking to acquire them.”

Herman also noted that post-transaction integration is happening smoother and much faster because the company uses local market labels, names and branding.

“We don’t change that because those organizations have built those brands up over the years, in many cases, decades,” he said. “Since we don’t change that, we don’t disrupt that market flow. We’re able to take the asset, put it in, move it forward, bring a lot of back office support, including net positive benefits on every transaction we’ve done today, and give our 8,000 employees – at every level – access to benefits.”

Ultimately, New Day has what Herman describes as a “disciplined strategy” around acquisitions.

“We don’t buy top-shelf and we don’t buy train wrecks,” he said. “Turnarounds are much harder to integrate. We’d rather buy a good company that’s performing well. We don’t buy top-shelf because there’s nowhere to go.”

The company has a number of key factors it considers when looking to pull the trigger on an acquisition.

“The first is culture,” Herman said. “If our cultures don’t align, we walk away. If our cultures align, then we move to compliance. It’s a tough industry, nobody’s going to be perfectly clean on compliance, but if you don’t have a clear path to clear compliance issues, we walk away. Then we get engaged in clinical and finance. That discipline has helped us pick really good companies, buy good performers and improve them.”