New Day Healthcare – one of the fastest-growing home-based care organizations in the country – has picked up more fuel for its growth engine. The company announced Monday that it has closed on a $125 million senior credit facility with First Citizens Bank.

Backed by the private investment company Kaltroco, New Day has executed about a dozen deals since it was founded in 2020. Most recently, it acquired hospice assets from Intrepid USA.

The company, which is based in Fairview, Texas, offers home health care, home care and hospice services. In addition to its home state, New Day provides care in Illinois, Kansas and Missouri via 30 locations.

The funding from First Citizens Bank will “refinance New Day’s existing debt, facilitate four acquisitions under letters of intent, and support future acquisition pipelines,” according to a press release.

“We are pleased to support New Day Healthcare as they continue to expand and enhance post-acute care services,” William Douglass, group head of First Citizens Bank Healthcare Finance, said in a statement. “New Day’s commitment to quality care aligns with our focus on helping healthcare providers grow and meet evolving patient needs.”

New Day’s mantra is “burn the ships.” The company wants to rethink the way home-based care is delivered in the U.S.

“That is our mantra, burn the ships,” New Day CEO G. Scott Herman previously told Home Health Care News. “So we can redesign home care. We’re not forgetting the past, because we learned a lot of lessons there. Instead, we’re constantly looking forward. We’re not going to fall in that trap of, ‘This is how we’ve always done it.’”

One of the specific ways the company is doing things differently is through a remote model. In lieu of having money tied up in brick-and-mortar facilities, New Day tries to keep overhead costs low.

That way, it can offer superior benefits to its workers, which it believes is key in the recruiting and retention battle.

In addition, low overhead costs allow the company to take on patients from a variety of payer sources.

“We can create low overhead and low cost of delivery, which allows us to take large swaths of managed care or per-visit clients, with multiple payers, in a very cost effective manner. That produces a healthy gross margin,” Herman said. “We proved that model can scale, and now we can replicate it. So, with our acquisition strategy, we can buy and integrate companies that have large managed care populations.”

After the Intrepid deal, Herman said that the company will continue to look for transaction targets that fit its overarching strategy in 2025.

“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.”