$8.1 Million (Revenue) Home Health and Hospice Agency located in Southeastern Michigan

M&A Healthcare Advisors is pleased to present a Joint Commission (“JCAHO”) accredited, Medicare and Medicaid certified Home Health and Hospice provider located in the Greater Detroit Metro and Southeastern areas of Michigan. The Company has a strong reputation in their region and currently employ Skilled Nurses, Home Health Aides and Physical, Occupational, and Speech Therapists. They provide a full scope of home-based services across the spectrum from acute services to ADLs (Activities of Daily Living) and have established and maintained a trusted name with referral sources within the state.
In 2020, Covid took its toll, limiting the amount of elective surgery patients and in-patient facility visits. This reduced revenue from $9.2 million in 2019 to $7.5 million in 2020. In 2021, revenues have improved, year-to-date, and are conservatively estimated to reach $8.1 million by year end. Starting in March of 2020, the agency focused on reducing expenses by revamping its payment structure for nurses and therapists, along with reducing its debt load and corresponding interest payments. As a result, over the TTM (Trailing Twelve Months) period, ending September 2021, the company has generated an adjusted EBITDA margin of $1.6 million. We expect that trend to continue and conservatively estimate an adjusted EBITDA margin of $1.6 million through the end of this year.
Currently, 94% of Home Health patients are episodic, with Medicare as the primary payor. The other 6% of their patients are Fee for Service (FFS) through commercial insurance. All Hospice patients are reimbursed through Medicare. It is estimated by year end 2021, their Home Health agency will have approximately 1,800 patient admissions. The average 2021 YTD census for their hospice agency is approximately 50, with a 75-day ALOS.
All employees are expected to remain post-acquisition, including key leadership who are currently managing the day-to-day clinical operations and administration. All employees are expected to remain post-acquisition, including key leadership who are currently managing the day-to-day clinical operations and administration. Of the current ownership team, one partner will entertain a longer-term employment / equity structure and all operational partners will assist during a transitional period.
The asking price for this opportunity is $9.5 million.