FORT WORTH, Texas, Feb. 27, 2020 /PRNewswire/ -- RSVP Home Care and Pulmonary Partners ("RSVP") (https://www.rsvphomecare.com/), a pediatric specialist group providing medical supplies and services in Kentucky, Ohio, and Indiana recently partnered with Pediatric Home Service ("PHS")(http://www.pediatrichomeservice.com/), a Minnesota-based independent comprehensive home care provider. RSVP Home Care and their adult division, Pulmonary Partners, provide specialized in-home enteral nutrition, respiratory care, and equipment to patients. The transaction was facilitated by VERTESS (https://vertess.com), a leading healthcare M+A advisory firm.
"We believe this new partnership is win-win for RSVP, PHS, and the patients receiving services," noted Bradley Smith, the VERTESS Managing Director/Partner who represented RSVP in the transaction. "Continuity in the quality of care is the highest priority for both RSVP and PHS."
RSVP was founded by a group of respiratory therapists and serves technology-dependent pediatric patients and an adult population. They offer a full range of Durable Medical Equipment (DME), Home Medical Equipment (HME), and clinical respiratory services.
FORT WORTH, Texas, Feb. 13, 2020 /PRNewswire/ -- In a strategic move to better capture opportunities to grow in other states, Mosaic (http://www.mosaicinfo.com), a Nebraska-based provider of personalized services to more than 3,700 people with diverse needs in 10 states, transitioned its Texas services to Caregiver Inc. (http://www.cg-idd.com), a Texas-based provider, effective Feb. 10, 2020.The transaction was facilitated by VERTESS (http://www.vertess.com), a leading healthcare Mergers + Acquisitions (M+A) advisory firm."Our 'Real life. Real possibilities.' strategic roadmap positions Mosaic to grow substantially over the next five years," said Linda Timmons, Mosaic President and CEO. "Our whole-person healthcare model puts people at the center of everything we do. The funding and regulatory model in Texas is no longer a fit with our vision for services."
Mosaic has been in active acquisition and growth mode for several years, acquiring providers in Kansas, Iowa, Arizona and Nebraska. The organization has also expanded its lines of service, adding in-home supports for seniors and others with diverse needs, behavioral and autism-specific services, and managing dramatic growth in its host home service, Mosaic at Home.
"At the heart of this transaction was the desire to provide the best possible resources for the people in Texas. Mosaic and Caregiver were committed to ensuring a smooth transition for all of the clients affected," noted Rachel Boynton, VERTESS Managing Director.
YARMOUTH, Maine – Building on a handful of notable deals in late 2019, M&A analysts say they expect a strong 2020—at least to start.
Among the most active in 2019 was AdaptHealth, which in the fourth quarter bought several sizable companies, including McKesson’s Patient Care Solutions business, and became a public company.
“There is money flowing and deals—good deals—are getting done,” said Don Davis, president of Duckridge Advisors. “I think the buyers are going to be more aggressive, chasing deals and getting people motivated to sell in the first half of the year.”
AdaptHealth also bought the HME business of Advanced Home Care in December.
AdaptHealth’s activity underscores a trend of continued consolidation in the HME industry, despite an already thinned out crowd, analysts say.
PLYMOUTH MEETING, Pa. – AdaptHealth’s acquisition of Patient Care Solutions gives the provider a nice platform for expanding its supplies business, say analysts.
PCS offers disposable medical supplies, including urological, incontinence, wound care and diabetes supplies, as well as breast pumps.
“They’ve been doing supplies as a matter of course and I think this gives them the opportunity to leverage the customer base they have,” said Pat Clifford, managing director, the Braff Group. “It’s a good acquisition.”
Also part of the deal, announced in November: AdaptHealth will enter into a supply and distribution agreement with McKesson for PCS’s service lines.
The pack-and-ship model for supplies is one AdaptHealth already knows, thanks to its acquisition in 2018 of Verus Health, a national provider of CPAP supplies.
FORT WORTH, Texas--(BUSINESS WIRE)--Caregiver Inc., Texas’ second-largest provider of long-term care services and supports to people with intellectual and developmental disabilities announced today it has entered into a purchase agreement to acquire Mosaic services in Texas. Since Caregiver’s inception in 2015, the private Fort Worth-based company has experienced rapid growth to meet individuals with disabilities’ needs for high-quality care. Caregiver’s origins date back to 1978. The acquisition will expand the company’s presence in Texas and strengthen its portfolio of providers.
“Caregiver’s expertise and investments in technology are solving inefficiencies often experienced by smaller companies. As a result, costs go down, the quality of care goes up, and we’re able to expand services to more individuals and their families,” said Mark Lashley, president and chief executive officer of Caregiver. “Our partnership with Mosaic means conscientious and hard-working team members will have the opportunity to provide personalized services with compassion and respect to even more Texans with disabilities.”
“PDGM [Patient Driven Groupings Model] is going to be big,” says Managing Director Bradley Smith of Vertess, a Texas-based healthcare focused M&A advisory firm.
PDGM is a new case-mix classification model used to structure healthcare payment categories and reimbursement thresholds. Come January 1, 2020, there will be a change in the unit of home health payment from a 60-day period to a 30-day period, forcing smaller providers to make substantial adjustments to their operating models.
“It will be similar to what happened in home health in 2000, and it will cause a massive consolidation. Similar to competitive bids that the DME [Durable Medical Equipment] market went through in 2009 and 2010, we are going to see a consolidation of a significant portion of the marketplace, creating opportunity for existing players and generating more PE interest. PDGM is a disruptive opportunity for them to execute a rollup strategy and capture a substantial part of the market,” says Smith.
BROOKLYN PARK, Minn. – Reliable Medical Supply has grown organically to four locations in Minnesota, but with an outside investor now on board, it has set its sights on expanding through acquisition into new geographical markets.
The first area of focus for the company, whose top product categories are complex rehab and vents: buying another company that will allow it to better serve patients in western Wisconsin.
“There are patient access issues out there,” said Debra Kalk, president and CEO. “There are no suppliers serving that area, especially on the vent side. To give those patients access and two-hour response times and 24/7 on-call services, we need to be strategically closer.”
YARMOUTH, Maine – It’s still early, but CMS’s proposed changes to the competitive bidding program could renew M&A activity, analysts say.
In the short term, the agency wants to implement an any willing provider provision when the current bid contracts expire, allowing any Medicare-enrolled provider to serve beneficiaries while it overhauls the program.
“Now that you don’t have these handcuffs on, you can go out and grow organically or through acquisitions,” said Brad Smith, managing director and partner at Vertess. “That will increase market competition and drive more demand.”
Originally posted by HME News on March 9, 2018
TUCSON, Ariz. – When it comes to mergers and acquisitions in the complex rehab industry, it’s not just the two national providers that are making moves, says Brad Smith, managing director and partner at Vertess.
“There are others,” Smith said, “particularly a number of regional players, $10 million to $50 million, and smaller players, $10 million and under.”
Here’s what Smith had to say about why “there are options out there,” even in this considerably consolidated market.
Originally Published by HME News on January 19, 2018
YARMOUTH, Maine – Expect to see large regional HME players get bigger in the year ahead as they look to increase their market share, say M&A analysts.
“These regionals are really looking to grow their territory,” said Brad Smith, managing director/partner at Vertess. “I think 2018 is going to be a huge year.”
And that’s building on a strong 2017. In the third quarter of last year, 18 transactions were completed in the HME sector, the highest since 2014, according to The Braff Group.
“I think both buyers and sellers are getting comfortable with where true valuations are,” said Patrick Clifford, a managing director at The Braff Group. “Valuations aren’t overly terrific, but they aren’t bottom fishers, either.”