A SR CARE GROUP Focus: U.S. Home Healthcare Agencies & In-Home Care businesses
“The number of businesses closing or being sold that are owned by people facing retirement is on a big uptick ...”
- David Hammer, Executive Director at the ICA Group
“More healthy businesses are being closed than sold…This not only affects the workers directly but the communities where these businesses reside ...”
- Alison Powers, Program Officer of Strategy, Innovation, and Impact at Capital Impact Partners
Number of active home healthcare agencies in the U.S.
11,500
Percent of U.S. home healthcare agency owners over the age of 55.
60%
Percent of U.S. home healthcare agencies beneath the desired revenue size of notable industry acquirers.
>90%
Transitioning Ownership Expertise
Acquisition begins with a mutual desire to transact. We leverage and employ legal, accounting, and sector-specific diligence to asses suitability for both parties in the transition of ownership. This meticulous process ensures alignment with the seller's objectives near and long-term, all the while making certain the seamless continuity of care needed for all existing and soon-near, on-boarded future client-patients.
DCW Attraction & Retention
We strive to establish agency-based peer mentoring for new hires to reduce turnover in their first 90 days. In terms of financial flexibility, we can provide daily or on-demand access to earned pay. To address the shortage of DCWs, we can seek waivers for state-mandated DCW training hours for nursing students and collaborate with nursing schools and the Reimaging Nurses campaign to institute rotations in a community or home care setting. Lastly, we can develop a daycare exchange application using technology to connect DCWs in need of daycare (3 in 10 DCWs) with those working opposite shifts.
Tailored succession plan
60% of home healthcare agency owners are over the age of 55, with the overwhelming majority being owners of agencies beneath the industry acquirers’ desired size to be considered a viable target for acquisition. We’re set to fill the aging owner’s need for a buyer & understand that each prospective seller has different needs and a different desired timeline and deal structure for their exit.
The Medicare Component
The proposed annual rule for Medicare home health services in 2023 initially suggested an estimated $810 million decrease in payments, which could have resulted in 44% of home health agencies operating at a loss. In response, the Preserving Access to Home Health Act of 2022 limits the Centers for Medicare & Medicaid Services (CMS) from reducing certain payments for home health services based on specific adjustments, but only until 2026. In addition to payment diversification, the goal is to modify the use of inputs to correspondingly reduce the cost per service. This is crucial as otherwise, Medicare payments for health services may progressively fall below providers' costs.
What we bring
Chronic Care Management
Chronic care management (CCM) prowess is critical to a patient-centric approach. CCM professionals enhance overall health outcomes through a proactive approach to patient assistance, preventative readmissions via regular assessments, and promoting self-care and lifestyle alterations. Such management alleviates healthcare costs and boosts the efficiency and efficacy of service delivery.
Medical Coding & Billing Expertise
Given projected Medicare changes, the need for adept medical coding and billing expertise in Medicare-certified home healthcare agencies is paramount. These professionals ensure accurate patient care documentation and claim submission, facilitating compliance with dynamic Medicare regulations and optimizing revenue. They are vital for adapting to changes, minimizing audit risks, and preventing financial penalties from improper billings. Hence, exceptional billing and coding skills are fundamental for the financial sustainability and operational efficiency of agencies.