Addus HomeCare Corp. (Nasdaq: ADUS) plans to amass Gentiva's private care merchandise enterprise for about $350 million.

These property quantity to greater than 16,000 residence care sufferers per day in Arizona, Arkansas, California, Missouri, North Carolina, Tennessee and Texas. Addus – which simply left New York State – will finance the acquisition by way of its current revolving credit score facility.

“We consider this acquisition is a wonderful strategic match for Addus, and we’re excited in regards to the alternative to increase our private care market protection in seven states, together with Texas and Missouri, that are new markets for Addus,” mentioned Dirk Allison , CEO of Addus. “Particularly, Gentiva is the most important supplier of non-public care companies within the state of Texas, the place we presently don’t have any private care operations. This acquisition is totally aligned with our development technique to leverage our sturdy expertise in private care to construct scale in current markets and enter choose new markets the place we will instantly set up a big presence.”

Addus presently supplies residence well being, residence care and hospice companies to greater than 49,000 shoppers by way of 214 places throughout 22 states.

Finally, Atlanta-based Gentiva is a supplier of residence well being, hospice and palliative care companies. It has greater than 590 places throughout 38 states. The corporate was shaped from Humana's (NYSE: HUM) divestiture of Kindred at Residence's residence care and hospice property to Clayton, Dubilier & Rice (CD&R). As soon as Humana totally acquired Kindred at Residence – and rebranded it as CenterWell Residence Well being – it retained solely Medicare-certified residence care.

Since then, Gentiva – led by CEO David Causby, the previous CEO of Kindred at Residence – has centered totally on hospice and palliative care. The corporate acquired ProMedica's residence care, palliative care and hospice property final 12 months for $710 million.

Causby informed Residence Well being Care Information final 12 months that he believed the corporate would flip a historic loss chief in palliative care right into a “sport changer.”

“One of many issues we're actually making an attempt to construct out is a sophisticated palliative care mannequin,” Causby mentioned. “Palliative care may be very tough today. It’s based mostly on the physician's schedule Half B. It’s a loss chief. There's simply no good compensation. However we personally really feel that this is among the best wants. One of many largest bills in at this time's well being care system is for these sufferers within the center bucket who don’t qualify for residence care and don’t qualify for hospice. That's actually the place palliative care ought to be.”

Now the corporate can focus completely on palliative care and hospice care.

“As a acknowledged chief in private care companies, Addus is the fitting residence for our private care division and our teammates who present care to those necessary shoppers,” Causby mentioned in a press release. “It will guarantee continued development for that phase beneath confirmed management and can enable us to sharpen our give attention to our main hospice and palliative companies, the place we now have the best alternative to ship the compassionate care that defines who we’re, to those that want us most.”

Addus, alternatively, has repeatedly mentioned it desires to proceed buying private care property throughout the nation, and ideally layer on high of residence care companies to increase value-based care choices.

Gentiva's footprint in seven states supplied an ideal alternative to do the previous.

“Acquisitions stay an necessary a part of our development technique, and we are going to proceed to pursue strategic acquisitions that meet our standards and contribute to our enterprise,” Allison continued. “Luckily, our sturdy capital construction helps our technique, and we look ahead to extra alternatives for Addus.”