To say the home care industry in NY is a u landscape would be an understatement. The issues that agencies face here are unlike anything experienced throughout the rest of the country. Many state-wide and locality-based mandates are placed on home care agencies from both the DOH and the DOL.
In recent years, a plethora of compliance guidelines has emerged. The implementation of EVV, updates to the Wage Parity Law, increases in the minimum wage, COVID vaccine protocols, and the fallout from the CDPAP RFO awards are among the top concerns for agencies operating in the state.
In our inaugural post, we focus on a topic with many discussions – Mergers & Acquisitions,
Jamel Wright Founder/CEO of Wage Parity Experts
Here we will use the nursing process to give you a few things to consider before an M&A. It is important to assess if you should acquire another company.
M&A Assessment and Diagnosis
According to a recent analysis by the AMAA Merger and Acquisition Access provided by Deal Ware, the first quarter of 2021 M and A Market reports that healthcare businesses are listed as the top three types of companies to be Merged or Acquired. The healthcare industry represents roughly 30% of M&A activity, showing tremendous opportunities, specifically in-home care. Whether you are considering taking this time to sell or buy a home care agency, these are the things you should consider when thinking about M and A's.
Here are some things to analyze;
1. Assessment- Analyze your company and interview the prospective company
What are we lacking? – Robust training program, Home Health Aide Training School, a leadership team with home care specific knowledge, unionized environment, resources for staff and patients, service areas/ demographics, languages served, population, type of services provided (Pediatric, IV infusion, Medicaid Waiver, Traumatic Brain injury, Concierge Care, Case Management, Medicaid Application Services, Caregiver Support Group, Incentives, Accreditations, etc.) Patient, family, and staff wellness program, referral sources and marketing team, contracts, brand recognition, mission, vision, technological advancements, and operational efficiencies.
Is the company we are trying to acquire synergistic with our needs, goals, vision, and mission?
2. Diagnosis-Gather information & Identify the problems
Financial cost - what range will best fit our company's' sweet spot? What revenue are we looking for?
Financial Liabilities- Leases, Contracts, Tax, Payroll
Contract Rates/Billable hours, A&R
Audits Example DOH Audit, Consumer Affairs, Labor, Justice
Wage Parity Compliance
Profit and Loss
Obtain a Valuation/ Financial Analysis
Brand Portfolio (marketing experiences, employee experiences, culture, patient experiences, and reviews)
Market Distribution Accessibility feasibility
If you are looking to buy or sell your home care agency contact us and we will give you full support and match you with the right agency or buyer/seller. You may contact us with questions at firstname.lastname@example.org or visits us on the web at www.emmanuelconsultingteam.com
To view this guest blog in full go to Wage Parity Experts Blog