The acquisition will expand Addus' service lines to include home health and hospice care.
Addus HomeCare has acquired Tennessee Quality Care's 17 locations, expanding the home care provider's presence in the state.
In addition to private duty caregiving services, Tennessee Quality Care, owned by American Health Partners, also provides home health and hospice services to an average of 1,800 each day, spanning 50 counties.
"This acquisition fits squarely into our growth strategy to leverage our strong personal care presence and add clinical services in key markets," Dirk Allison, Addus chairman and CEO, said in a statement.
Acquiring Tennessee Quality Care's operations will allow Addus to provide all three levels of care—private duty caregiving, home health, and hospice—which previously would have been difficult, with Tennessee being a Certificate of Need (CON) state.
CON states require a health planning agency or similar entity to approve the creation of new healthcare facilities or the expansion of an existing facility's services in a specified area, according to the National Conference of State Legislatures.
"This combination will benefit everyone associated with Tennessee Quality Care, especially the patients, families, and employees," Michael Bailey, CEO of American Health Partners, said in a statement.
"We believe this acquisition will be an ideal addition for Addus with an established market presence and reputation for quality, compassionate care," Allison said. "We have a shared commitment to provide safe and cost-effective home care services, and we look forward to the opportunity to offer patient-centric care, home health, and hospice services to more patients and families in Tennessee."
The transaction is expected to close in the third quarter of 2023.
“This acquisition fits squarely into our growth strategy to leverage our strong personal care presence and add clinical services in key markets.”
Dirk Allison, chairman, CEO, Addus HomeCare
Jasmyne Ray is the revenue cycle editor at HealthLeaders.