Transactions: ModivCare to Buy VRI for $315M; Nova Leap Completes Home Care Deal
ModivCare expands into remote patient monitoring
ModivCare Inc. (Nasdaq: MODV), a diversified health care services company with a large personal care business, has signed an agreement to acquire VRI Intermediate Holdings LLC, a provider of remote patient monitoring solutions.
Under terms of the agreement, the Denver-based ModivCare will acquire 100% of VRI for a purchase price of $315 million, subject to customary purchase price adjustments. VRI generated $56 million of revenue and $21 million of adjusted EBITDA for the 12-month period ended June 30, 2021.
“The acquisition of VRI brings us a national remote patient monitoring and medication management platform, accelerating our strategy to build a holistic suite of supportive care solutions designed to address the social determinants of health, deliver better care in the home, enhance patient lives and reduce health care costs,” ModivCare President and CEO Daniel Greenleaf said in a press release.
The announcement about VRI comes roughly a week after ModivCare also revealed plans to acquire CareFinders Total Care LLC for $340 million.
Once that acquisition is completed, ModivCare’s personal care segment will include nearly 16,000 caregivers working across seven states, providing about 30 million hours of care to 18,000 patients per year. ModivCare’s largest business segment is its non-emergency medical transportation arm, which delivers roughly 75 million rides across the U.S. each year.
Strategically, the acquisition of VRI, expected to close to close in the third quarter, will advance ModivCare’s goal of becoming an in-home supportive care powerhouse with a national footprint, according to the company. Additionally, ModivCare believes that having remote patient monitoring capabilities will strengthen its value proposition to health plans and other payers.
On its end, the device-agnostic VRI facilitates over 2.5 million annual person-to-person patient interactions, actively monitoring over 155,000 patients from two 24/7 care centers.
“We are excited to be joining forces with ModivCare, a pioneer in supportive care solutions that address the social determinants of health,” VRI CEO Jason Anderson said in the release. “Our technology and service offering will be highly complementary to ModivCare, and we believe it will have a significant positive impact on the patients ModivCare serves.”
Nova Leap closes on New England home care business
Nova Leap, a publicly traded Canadian home health organization that has been growing in the U.S. as well, has completed the acquisition of a New England home care business. Neither the name of the home care business nor financial terms of the deal were disclosed.
The agreement was previously announced on Sept. 3, 2020.
As a company, Nova Leap is geographically diversified, with operations in seven different U.S. states within the New England, South Central and Midwest regions, plus Nova Scotia in Canada.
“With the licensing process behind us on this particular transaction, we continue to move forward with our expansion plans in New England,” Chris Dobbin, president and CEO of Nova Leap, said in a statement. “We believe the New England market presents a tremendous region for future growth. We have made several investments in the area and continue to seek additional opportunities.”
Prior to the New England deal, Nova Leap’s most recent home care transaction came in December 2020 in Ohio.
LHC Group finalizes three transactions
LHC Group Inc. (Nasdaq: LHCG) has finalized acquisition agreements for three home health, hospice and palliative care providers in Virginia, Indiana and Arkansas. The initial agreements were first announced in July.
In Alexandria, Virginia, LHC Group has purchased Cavalier Healthcare Services, a home health agency that will open up a new service area for the publicly traded in-home care provider. The Virginia agency will continue operating under its existing name, according to LHC Group.
Additionally, in Evansville, Indiana, LHC Group has purchased MSA Hospice, which will now rebrand to OMNI Hospice in alignment with the company’s home health provider of the same name.
Meanwhile, in Crossett, Arkansas, LHC Group has purchased Ashley County Medical Center Home Health, bolstering the company’s home health footprint in the state. The provider will continue operating under its current name.
LHC Group expects annualized revenue from these purchases of about $8 million.
InnovAge announces telehealth investment
InnovAge Holding Corp. (Nasdaq: INNV) has made an equity investment in Jetdoc, a telehealth and virtual urgent care app that connects users with medical professionals. Terms of the deal were not disclosed.
Generally, InnovAge’s investment comes amid continuing demand for virtual health care services across a variety of sectors. As of July 2021, telehealth utilization had stabilized at 38 times higher than pre-pandemic levels, according to a McKinsey report.
Denver-based InnovAge is the largest Program of All-inclusive Care for the Elderly (PACE) organization in the U.S. It currently serves about 6,700 PACE participants across 18 centers in five states.
“Ever since the Centers for Medicare & Medicaid Services issued guidance to PACE organizations in March 2020 in response to the coronavirus pandemic, telehealth has become an important tool as we help seniors live independently and in their own homes for as long as safely possible,” InnovAge President and CEO Maureen Hewitt said in a statement. “The accelerated adoption of telehealth brought on by COVID-19 has demonstrated the need to have a platform that works with the unique aspects of the PACE model, including our interdisciplinary team approach.”
As part of its investment, InnovAge and Jetdoc will work together to create a remote patient monitoring platform specially designed for PACE and its members.
“The platform will be designed to support the unique PACE interdisciplinary care model, in which each senior in the program has a team of medical experts assigned to their care team,” InnovAge noted.