Privately held home care firm New Day Healthcare had a debut of sorts this week. The company, which began during the pandemic and is based in McKinney, TX, publicly disclosed that it acquired AdvantageCare Home Health, its seventh acquisition.
“Given the softened multiples in healthcare recently due to economic conditions and some regulatory things, we thought it was a great time to go ahead and make a few announcements, get out there and let the world know that we’re very active in the M&A circle,” G. Scott Herman, CEO and founder of New Day Healthcare, told McKnight’s Home Care Daily Pulse.
While the company made its first public announcement of an acquisition this week, the firm has been steadily growing since it began in 2020. With the latest purchase, New Day has 21 locations across Texas, Missouri, Kansas and Illinois. Serving nearly 82,000 patients annually, the company employs approximately 6,400 team members in home health, hospice, pediatrics, clinical decision support and personal care.
The company has chosen to fly under the radar as it has built out its proprietary data system, Carelytics, that allows it to understand and track patients’ clinical histories and experiences and intervene, said Herman, the former CEO of several home care companies including Elara Caring.
The company sought to do something different when it formed during the pandemic. “Burn the ships” is the firm’s mantra. It is a reference to the firm’s aim to rethink healthcare delivery at a time of rapid transformation with the payer environment, value-based care and such massive developments as the Home Health Value-Based Purchasing program, according to Herman.
“We chose in the middle of the pandemic, myself with some other seasoned home care professionals, that as operators, we would seek to develop something that was innovative, creative and where we could do some things along some predictive analytics streams and do it in the middle of what seems like a pretty tough time,” he said.
More acquisitions are on the way, Herman said. Two are expected to close this year and several more should close in the first quarter of 2024.
“We want companies that are a good-level performers,” Herman said. “Mostly they have very high-quality outcomes, very stable reputations, good management teams in place and clinical care delivery at a very high level.”
