AccentCare announced Monday that it has purchased Southeastern Health Care at Home from private equity firm Geneva Glen Capital.
Southeastern Health Care at Home is the largest privately-owned home health services provider in Pennsylvania. In addition to home health care, the company delivers hospice and mobile primary care services, plus palliative and wound care services.
Overall, it operates across 12 locations in Pennsylvania and Virginia.
Owned by global PE firm Advent International, the Dallas-based AccentCare is a provider of home health, hospice and personal care services, as well as private-duty nursing and care management services. The company has more than 250 locations across 31 states.
From an acquisition standpoint, Southeastern Health Care at Home was an attractive target due to the company’s track record of forming partnerships with prominent acute care providers. That has been a key strategy for AccentCare, which has more than 60 strategic partnerships with health systems, physician practices and insurance companies.
“Both organizations have a long legacy of closely aligning with renowned health systems and physician groups that seek coordinated, collaborative post-acute partners.” Steve Rodgers, CEO of AccentCare, said in a statement. “We expect to bring our combined expertise and evidence-driven learnings to improve the home-based care continuum for families and providers across the Mid-Atlantic.”
A good example of AccentCare’s existing partnership strategy is the post-acute care business it launched with Fairview Health Services in Minnesota last fall.
“It takes a different competency to work with the large health system, compared to some of the smaller, regional, sub-regional hospital systems out there,” Rodgers told Home Health Care News in September. “We want to be able to deploy a full range of resources, to really help the health system both develop a strategy around post-acute care and execute against that strategy.
Southeastern Health Care at Home serves roughly 3,100 patients across its footprint. With the Pennsylvania provider under its umbrella, AccentCare will serve over 200,000 patients in its markets.
Apart from deep-rooted partnership histories, both companies are also aligned when it comes to care delivery, according to Werner Freymann, who has served as Southeastern Health Care at Home’s CEO.
“From our earliest discussions with AccentCare leaders, it was clear we have a shared vision for providing exceptional care to our communities,” Freymann said in the statement. “We’re excited to advance home care as a member of the AccentCare family and what this means to the patients and families we serve.”
From a growth perspective, the deal allows AccentCare to expand its footprint and enter Virginia and Philadelphia, one of the largest Medicare markets in the U.S.
AccentCare’s acquisition of Southeastern Health Care at Home marks its first M&A deal since the company finalized its merger with Rosemont, Illinois-based Seasons Hospice & Palliative Care in 2020. The merger turned AccentCare into one of the five largest home health-hospice providers in the nation.
AccentCare’s significant growth over the years has made some industry insiders speculate that it could be one of the next large in-home care organizations to go public, especially as the demand for home health continues to increase. The company’s annual revenue places it somewhere between publicly traded home-based care providers LHC Group Inc. (Nasdaq: LHCG) and Encompass Health Corp. (NYSE: EHC), AccentCare leaders previously told HHCN.
“AccentCare has the size, especially after the Seasons merger, but it was big before then,” Mertz Taggart Managing Partner Cory Mertz previously told HHCN. “I would expect they’ll be looking at an exit anytime in the next three to four years. I would expect their multiple would be comparable to the current public companies, including Aveanna.”
AccentCare now has a significant presence in nine of the nation’s 10 largest metropolitan areas, according to the company.
“With this acquisition, AccentCare is excited about the opportunities extended to us in not only the Philadelphia market, which is one of the largest home health markets in the country, but also the state of Virginia, where we have not had a presence until now,” Rodgers added.
The post AccentCare Enters Two New Markets with Purchase of Southeastern Health Care at Home appeared first on Home Health Care News.