The Birmingham, Alabama-based post-acute care provider announced plans to purchase Alacare Home Health & Hospice.
Encompass Health announced Monday afternoon that it had reached an agreement to buy Alacare Home Health & Hospice, a home health operator that brought in $117 million in revenues last year.
Alacare, also based in Birmingham, currently operates 23 home health and 23 hospice locations throughout Alabama. Encompass Health views the move as another opportunity to expand its home health and hospice services in the state.
Encompass Health is one of the largest Medicare-certified skilled home health service providers in the country, posting revenues north of $1 billion in Q4 2018.
Related: Encompass Health Income from Shares Slide 57%, Revenues Near $1.1B
The company attributed its revenue success during the latter part of the year on growing volume among its home health and hospice segment as well as its acquisition activity.
Year-over-year, the segment grew $43.9 million, totalling $250.3 million by the end of 2018.
Pending customary regulatory approvals, the deal is slated to close during Q2, at which time Encompass would be among the top 10 largest hospice providers based on Medicare reimbursements.
C-suite perspective:
"Over the past 50 years, Alacare has built a remarkable legacy of providing exceptional home-based care for patients across Alabama," April Anthony, CEO of Encompass Health's home health and hospice business said in a statement. "Encompass Health is committed to upholding and building upon that legacy and is pleased to welcome Alacare's employees and patients to our company."
"We are fortunate to be able to choose Alabama-based Encompass Health from a number of interested partners," John Beard, president of Alacare, said in a statement. "Due to their commitment to patient care and their employees, Encompass Health has been at the top of our list of home health and hospice organizations who are capable of continuing the outstanding care Alacare has provided over the last 50 years."
Related: Encompass Health CEO Earned 134-Times As Much As Median Employee in 2017
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: Photo credit: KONSKIE, POLAND - December 01, 2018: Encompass Health Corporation logo displayed on smartphone - Image / Editorial credit: Piotr Swat / Shutterstock.com
KEY TAKEAWAYS
Alacare, which operates more than 40 home health and hospice locations in Alabama, brought in $117 million last year in revenues.
Encompass Health has seen its hospice segment revenues continue to grow, both through sustained volume and acquisition activity.
The Alacare purchase is slated to close during Q2