Mergers and acquisitions in the Home Health & Hospice space are charging into 2018. Six deals were announced in the sector for the month of January, and more will likely turn up in the coming weeks. January’s total is already about half of the number of deals announced in this sector in the fourth quarter of 2017.
It’s no surprise then that companies providing ancillary services to home health and hospice companies are seeing a surge in investor interest. Netsmart Technologies, jointly owned by Allscripts Healthcare Solutions (NYSE: MDRX) and GI Partners, has been building out front-office software solutions (think electronic health records) for providers in this area. Now it’s added a back-office solution.
On February 1, the company announced its acquisition of HomeCare Accounting Solutions, a cloud-based software company that automates back-office and clinical field operations of home care agencies such as home health, hospice, palliative care and private duty. Financial terms were not disclosed.
This deal follows Netsmart’s acquisition of DeVero in July 2017, which provides SaaS solutions to more than 57,000 users at 540 organizations in the home care, hospice and other care-at-home segments with its DeVero CareRecord.
Integrating the HomeCare Accounting Solutions platform creates a unified platform that can grow and adapt as health care shifts to value-based care and payment models.
Netsmart was taken private in November 2006 by venture capital firm Insight Venture Partners for $115 million. At the time, the company designed, developed, marketed and implemented management information systems for the behavioral health care industry.
In March 2016, Genstar Capital, its then-owner, sold Netsmart to Allscripts and GI Partners for a combined total of $950 million. Allscripts contributed 100% of its Homecare EHR business, plus $70 million in cash to the joint venture. GI Partners made a cash investment of $338.8 million, as well as third-party debt financing.