HHAeXchange: An Interview with Paul Joiner

Caring for the Caregiver

by Kristin Rowan, Editor

Paul Joiner Talks to The Rowan Report

The care at home industry changes seemingly daily with new regulations, HH agencies opening and closing, more people qualifying for Medicare, technological advances like artificial intelligence, and the list goes on. Since 2008, HHAeXchange has been part of the change and growth of the industry. This week, The Rowan Report sat down with CEO Paul Joiner to discuss HHAeXchange’s recent changes, upcoming changes, and acquisitions. 

Cashé Software

On June 18, 2024, HHAeXchange announced the acquisition of Cashé Software, a Minnesota-based solution for homecare operations and billing. The merging of these two companies yields expanded ability to help homecare providers and billers with compliance, streamlined billing, and optimized workforce management.

Generations Homecare System

Just three weeks later, on July 8, 2024, HHAeXchange announced the acquisition of Generations Homecare System, an all-in-one homecare agency management software solution that connects care teams, simplifies daily tasks, and maintains compliance. This pairing aims to drive innovation and excellence in homecare.

Minnesota Office and Call Center

Ten days after the acquisition of Generations, HHAeXchange announced the opening of a new office and call center in Bloomington, MN. The office will offer localized, skilled agents to provide timely, efficient, and responsive customer support. This location will also be a home base for HHAeXchange employees who work remotely in the area and will provide job opportunities and growth in Bloomington.

Paul Joiner: On the Record

Paul Joiner became the CEO of HHAeXchange in March of 2023. Joiner came to HHAeXchange after serving as CEO in the substance abuse and mental health space. We sat down with Paul this week to talk about his position, the recent acquisitions, and future plans for HHAeXchange.

The Rowan Report:

HHAeXchange has gone through significant change and growth just in the last couple of months. Can you tell us about some of the plans you made for HHAeXchange?

Paul Joiner:

A lot of the growth was keyed up when I came on board. I just took it to the finish line. Implementing growth effectively required some changes. There is some pressure in this industry to evolve quickly.

RR:

What are some of the challenges you faced?

Joiner:

The current issues of recruiting, onboarding, retention, and training put a lot of pressure on technology solutions. And the pace of that change makes it harder for tech solutions to keep up.

Paul Joiner, CEO, HHAeXchange

Paul Joiner, CEO, HHAeXchange

XRR:

Did that drive the strategy behind your recent acquisitions?

Joiner:

Looking at strategy in the context of current challenges: finding people who understand the space and finding knowledge applied in technology is not easy to find or to develop organically. Then we find businesses like Cashé where we like the people, their position, their geography, and they have pieces that will help us build toward our vision of being the leader in Medicaid homecare and driving value and efficiency.

RR:

What does acquiring Cashé do for HHAeXchange?

Joiner:

Well…I can’t tell you, because it’s part of a strategy that comes with a bigger reveal. But I can tell you that acquiring Cashé is part of our technology lift. They have built a new technology with modern architecture. We will use that as a starting point to provide an additional offering in the marketplace. Cashé enables us to build faster, and innovate faster. While we continue to invest in HHAeXchange, Cashé gives us a head start on modern tech that can be added to our current offerings, or sold as a stand-alone solution.

RR:

And what about Generations?

Joiner:

Generations is a great business that has put business logic and rules into their technology. They also have a geographical presence where HHAeXchange does not.

RR:

How did this rapid growth of two acquisitions and a new call center impact HHAeXchange?

Joiner:

Taking on this much change created the need for improved communication across three organizations. That communication helped us provide a better narrative for Cashé and Generations employees who may have been a little nervous about the change.

RR:

You must have some really great teams in those three organizations to navigate these changes.

Joiner:

We have a great team. There are a lot of people we’ve brought on board in the last two years as we continue to grow along with the incredible team of people who have been at HHAeXchange much longer. We’re comfortable dealing with scale, size, and complexity, so the changes didn’t overwhelm us.

RR:

What does future growth look like for HHAeXchange?

Joiner:

We will probably continue to acquire companies. Maybe not multiple companies in a matter of weeks, but we will continue when the opportunity arises. The spirit behind our strategy is to focus on what our customers need. We are in a position in the market to have a big responsibility to be good stewards, help our customers, caregivers, and agencies, and improve the quality of life for patients.

HHAeXchange is focused on getting the right technology into the hands of caregivers. We’ve already done EVV and point-of-care well. Can we make a difference now in how they are onboarded and scheduled? Can we make a difference in billing and how they’re getting paid? That requires acquisitions and investing organically.

RR:

Any final remarks on what the future holds for HHAeXchange?

Joiner:

Part of our vision board is building a community of caregivers through technology. The good agencies are trying to figure out how to think as much about the caregiver as they do for the people receiving care. Turnover and training is so hard, so we need to invest in our caregivers.

We also need to be a better supplier of data to arm agencies and health plans with the data they need so they can have useful discussion around the date and how they’re supporting caregivers. I’m sad sometimes because agencies don’t get enough financial support for their effort. The industry can be doing more for their caregivers.

We take our responsibility to do the right thing seriously. Because of this, we are investing in the space and we want more options so we can be better for the industry. Our intention is to make a difference.

RR:

Thank you, Paul for talking with us today. 

About HHAeXchange

Founded in 2008, HHAeXchange is the leading technology platform for homecare and self-direction program management. Developed specifically for Medicaid home and community-based services (HCBS), HHAeXchange connects state agencies, managed care organizations, providers, and caregivers through its intuitive web-based platform, enabling unparalleled communication, transparency, efficiency, and compliance. For more information, visit hhaexchange.com or follow the company on TwitterLinkedIn and Facebook.

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Kristin Rowan, Editor
Kristin Rowan, Editor

Kristin Rowan has been working at Healthcare at Home: The Rowan Report since 2008. She has a master’s degree in business administration and marketing and runs Girard Marketing Group, a multi-faceted boutique marketing firm specializing in event planning, sales, and marketing strategy. She has recently taken on the role of Editor of The Rowan Report and will add her voice to current Home Care topics as well as marketing tips for home care agencies. Connect with Kristin directly kristin@girardmarketinggroup.com or www.girardmarketinggroup.com

©2024 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in Healthcare at Home: The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com

HHAeXchange Acquires Cashé Software

M&A

HHAeXchange

FOR IMMEDIATE RELEASE

Contact:

Michelle Rand, Alloy
855-300-8209
michelle.rand@alloycrew.com

HHAeXchange Acquires Cashé Software, Strengthening Homecare Operations for Thousands of Agencies and Individuals

Acquisition secures expanded access to solutions that enable caregivers, families, providers, and payers to deliver the best care in the home

NEW YORK, June 18, 2024 – HHAeXchange, a leader in homecare management solutions for providers, managed care organizations (MCOs), state Medicaid agencies, and fiscal intermediaries, today announced its acquisition of Cashé Software, a leading Minnesota-based solution for homecare operations and billing. The strategic transaction brings together two premier, complementary providers of end-to-end homecare software platforms, significantly expanding the combined company’s ability to help thousands of homecare providers and payers across the U.S. ensure compliance, streamline billing, and optimize workforce management. 

The homecare industry continues to experience rapid growth, and is expected to increase from $100 billion in 2024 to $176 billion by 2032. Software that streamlines operations and enables agencies to achieve better health outcomes will play a key role in this projected growth, as home and community-based services (HCBS) providers increasingly turn to such tools to manage all aspects of their agency operations. 

“Today marks an exciting milestone as we join forces with Cashé. In addition to its robust product set, the company shares HHAeXchange’s passion for homecare, technology, and innovative software,” said Paul Joiner, HHAeXchange’s Chief Executive Officer. “Homecare agencies need purpose-built technology to support them in delivering quality care. We are thrilled to partner with the Cashé team to collaborate on our vision of delivering the most comprehensive solution that drives operational efficiency, increases compliance, and improves health outcomes.” 

Since 2004, Cashé has provided advanced technology and services to simplify and streamline mission critical processes, benefiting more than 400 homecare agencies in Minnesota. With its recent launch of the Pavillio platform, Cashé continues to demonstrate its commitment to helping agencies get paid faster, increase team capacity, eliminate error-prone manual processes, and automate revenue cycle management. 

“For 20 years, Cashé has been focused on ensuring our customers can rely on our software to help them deliver the best care in the home,” said former Cashé President Praba Manivasager, who now leads the Cashé business unit at HHAeXchange. “This commitment is strengthened by our partnership with HHAeXchange, and we look forward to working together as a team to accelerate our vision of building the software platform that sets the standard for efficient workflows and insightful data.” 

For more information about HHAeXchange, its solutions, or the Cashé acquisition, visit www.hhaexchange.com

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About Cashé Software 

Cashé Software is a leading technology partner for Home and Community-Based Service (HCBS) providers serving the Medicaid aging and disability population. Dedicated to helping agencies implement top operational practices and achieve the highest standards of care, Cashé Software offers end-to-end solutions that have enabled hundreds of agencies automate operations, implement EVV, ensure compliance, and achieve an impressive 99% first-time payment rate on billing. Driven by their mission to positively impact 2 million lives, all of Cashé’s solutions are designed with a person-centered focus to empower the entire care team. 

Large Health System to Outsource Home Health and Hospice to Compassus

M&A

Bon Secours Mercy Health to Outsource Home Health and Hospice to Compassus

Bon Secours Mercy Health (BSMH), the fifth-largest Catholic health system in the U.S., and Compassus, a leading national provider of home-based health care services, announced on May 2 that they have signed an agreement to form a 50/50 joint venture partnership for BSMH home care and hospice. Under the agreement, Bon Secours will outsource to Compassus, who will manage operations for 10 home health agencies and 11 hospice operations spanning five states.

Under the agreement, BSMH will maintain ownership of its existing hospice house real estate assets in specific locations while Compassus will manage the operations. BSMH will work closely with Compassus to support the home health and hospice associates transferring to employment with Compassus. Under the joint venture, the team will continue to provide spiritually grounded care and will operate in accordance with Ethical and Religious Directives.

The agreement is subject to state and federal regulatory review and final diligence; however, the agreement formalizes the intent of both parties to move forward with the transition and integration.

About Compassus

Compassus provides home-based services including home health, infusion therapy, palliative and hospice care. The company’s more than 6,000 team members serve more than 100,000 patients annually across more than 250 locations in 29 states. This is not the company’s first joint venture. In 2020, Compassus became managing partner of Ascension at Home, a joint venture between Ascension and Compassus.

About Bon Secours Mercy Health

Bon Secours Mercy Health (BSMH) is one of the 20 largest health systems in the United States and the fifth-largest Catholic health system in the country. The ministry’s qualityBon Secours Compassus , compassionate care is provided by more than 60,000 associates serving communities in Florida, Kentucky, Maryland, New York, Ohio, South Carolina and Virginia, as well as throughout Ireland.

Bon Secours Mercy Health provides care for patients more than 11 million times annually through its network of more than 1,200 care sites, which includes 48 hospitals. In 2022, BSMH provided more than $600 million dollars in community investments across five states, ensuring that cost is not a barrier to health care for patients in need.

In addition to charity care, BSMH invests in programs that address chronic illness, affordable housing, access to healthy food, education and wellness programs, transportation, workforce development and other social determinants of health. The Mission of Bon Secours Mercy Health is to extend the compassionate ministry of Jesus by improving the health and well-being of its communities and bring good help to those in need, especially people who are poor, dying and underserved. https://bsmhealth.org/

©2024 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in Healthcare at Home: The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com

New Players in Home Care

Admin

By Kristin Rowan, Editor

Home care is no stranger to mergers and acquisitions. It seems there is news almost daily about companies joining forces or selling parts of their company to new entities. Notably, we reported just last week that Cigna has dropped its entire Medicare Advantage book of business. This week, we have two M&A stories to share with you.

Acquisition

Texas-based agency Angels of Care, previously of Varsity Healthcare Partners, has been bought by Nautic Partners, a private equity company. Angels of Care provides pediatric home health, including private duty and skilled nursing services, along with physical and speech therapy, and respite care. Angels of Care operates in seven states, up from two states prior to their partnership Varsity Healthcare Partners, and employs more than 2,000 nurses, physical therapists, and other service providers.

Nautic Partners, based in Providence, RI, is already a backer of VitalCaring Group, a similar agency with locations across the southern United States, Integrated Home Care Services, providers of DME, home care, and infusion services in Puerto Rico, almost 30 additional healthcare companies. Nautic is a middle-market firm founded in 1986. They specialize in healthcare, industrials, and services.

Partnership

CVS’ Aetna has partnered with Monogram Health to offer in-home care services to Medicare Advantage members with chronic kidney disease. Nurses from Monogram will provide in-home and virtual appointments to eligible members. The two companies will also reportedly work to get timely referrals for kidney transplant evaluations.

Monogram Health is a tech start-up for in-home kidney disease management. Their latest growth funding round garnered $375 million in new funding from health care companies and financial backers, including CVS. Monogram has raised a total of $557 million. Monogram operates by creating value-based care deals with health insurance plans and risk-bearing providers to manage chronic and end-stage renal diseases.

If this model sounds familiar to you, it might be because we wrote last week about Gentiva, which is partnering with risk-based providers to offer palliative care services with risk-sharing benefits on both sides. I expect this is not the last time we will hear/write about risk-sharing partnerships to pay for services that aren’t covered by health care plans.

# # #

Kristin Rowan

Kristin Rowan has been working at Healthcare at Home: The Rowan Report since 2008. She has a master’s degree in business administration and marketing and runs Girard Marketing Group, a multi-faceted boutique marketing firm specializing in event planning, sales, and marketing strategy. She has recently taken on the role of Editor of The Rowan Report and will add her voice to current Home Care topics as well as marketing tips for home care agencies. Connect with Kristin directly kristin@girardmarketinggroup.com or www.girardmarketinggroup.com

©2024 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in Healthcare at Home: The Rowan Report.homecaretechreport.com One copy may be printed for personal use: further reproduction by permission only. editor@homecaretechreport.com

Transformative Trends in Home Care: Strategies for Successful Business Sale

Admin

by Greg Schriber

In the dynamic landscapes of home health, home care, and hospice services, these industries are experiencing transformative trends, marked by evolving market changes and a surge in demand. Understanding these trends and strategically positioning one’s business for a lucrative sale is paramount. This article provides a detailed guide on understanding the current market landscape and optimizing business value for a successful sale.

Transformative Trends

The industry is witnessing a substantial increase in demand for home-based care services, primarily driven by an aging population and a growing preference for aging in place. This trend has been further propelled by the COVID-19 pandemic, as more families are opting for home care to mitigate the exposure risks associated with institutional settings. Additionally, the advent of technological advancements such as telehealth and health informatics is revolutionizing the way services are delivered, enhancing patient outcomes and operational efficiency. Embracing these innovative solutions is imperative to maintain competitiveness and address the changing needs of clients. The industry is also navigating through shifts in regulatory frameworks, emphasizing quality of care through value-based care models and patient satisfaction. Adherence to new regulations and standards is crucial to sustain the business and avoid penalties. Furthermore, the market is undergoing consolidation, with larger entities acquiring smaller providers to diversify their service offerings and extend their geographic reach. This trend poses both challenges and opportunities for business owners contemplating a sale.

Strategic Positioning for SaleTransformative Trends For Sale

To position a business attractively for sale, optimizing operational efficiency is crucial. Streamlining operations and minimizing overhead costs not only enhance profitability but also make the  business more appealing to potential buyers. Implementing industry best practices and leveraging technology can significantly elevate operational efficiency and service quality. Diversifying service offerings is another strategic move, as it can expand the customer base and open up new revenue streams. Providing a range of specialized and complementary services positions the business as a comprehensive solution, attracting acquirers. Building and maintaining a strong brand reputation through exemplary services, customer satisfaction, and community engagement is also vital. A reputable brand can draw in strategic buyers seeking market leadership. Investing in workforce development is equally important, as a skilled and stable workforce is a valuable asset that can influence business valuation positively. Maintaining financial health and accurate financial records is critical, as it demonstrates the business’s viability and can facilitate the due diligence process during the sale.

Managing the Sale Process

Seeking professional advice from industry experts, financial advisors, and legal counsel can offer invaluable insights and guidance throughout the sale process, aiding in accurate business valuation, negotiation of favorable terms, and navigation of legal intricacies. Negotiations require a strategic approach – understanding the buyer’s motivations, being transparent about expectations, and being willing to compromise can lead to a mutually beneficial agreement. Identifying a buyer whose vision aligns with that of the seller is essential to ensuring the continuity and growth of the business post-sale. Whether the buyer is a strategic entity looking to expand or a financial entity seeking investment opportunities, finding the right fit is crucial. Additionally, being well-prepared for the due diligence process can expedite the sale and reduce the risk of deal fallout. This includes organizing all necessary documents and addressing any potential issues beforehand. Developing a clear transition plan that involves open communication and support is essential to ensuring a successful handover and employee retention post-sale.

Positioning a healthcare business for sale is a multifaceted endeavor, involving operational optimization, brand enhancement, and meticulous strategic planning. By staying abreast of market trends, adopting best practices, and effectively navigating the sale process, business owners can maximize their business value and achieve a successful exit in this rapidly evolving industry. The journey extends beyond the sale; it’s about creating a legacy and ensuring the continued growth and service to the community under new ownership. By being proactive, strategic, and thoughtful, business owners can significantly impact the future of home-based care and improve countless lives.

Greg Schriber is the M&A Senior Advisor for American Healthcare Capital. To learn more about Transformative Trends, Greg can be reached at greg@ahcteam.com

©2023 by Rowan Consulting Associates, Inc., Colorado Springs, CO. All rights reserved. This article originally appeared in Home Care Technology: The Rowan Report. homecaretechreport.com One copy may be printed for personal use; further reproduction by permission only. editor@homecaretechreport.com

Should Insurance Companies Own Home Health Agencies?

Editorial

by Kristin Rowan, Editor

UnitedHealth Group Makes Bid to Buy Amedisys after Acquiring LHC Group

Amedisys is one of the leading providers of home health, hospice, and other healthcare at home services. It operates more than 500 locations in 37 states and the District of Columbia. After acquiring Contessa Health in 2021 for $250 million, Amedisys added hospital-at-home, SNF-at-home, and palliative care to its list of services.

Optum Outbids Option Care Health

In May of this year, Option Care Health and Amedisys issued joint statements announcing a merger of the two companies in an all stock-option bid. Option Care Health provides home and alternate site infusion services, while Amedisys provides home health, hospice, and high-acuity care. The merger was valued at $3.6 billion. It would have increased stockholder value, increased access to care across the United States, and created a network of more than 16,000 health care professionals, according to the joint statement.1

By June 26th, Option Care Health confirmed the termination of the merger and a $106 million termination payment from Amedisys, after Amedisys accepted an all-cash bid from UnitedHealth Group.2

UnitedHealth Expanding Service Options

UnitedHealth Group acquired LHC Group earlier this year for $5.4 billion.3  That acquisition folded LHC Group into UnitedHealth Group’s Optum. The acquisition came after increased demands for home care services. UnitedHealth Group considered this a move toward value-based care. The Federal Trade Commission stalled the merger with requests for additional details in mid-2022. Despite the FTC probe and a shareholder lawsuit, the deal was ultimately approved and the LHC Group delisted its stock on February 22.4

New Merger Faces Federal Scrutiny

Optum and Amedysis expected concerns over anti-trust issues surrounding the merger, according to a joint statement from the two groups. The Department of Justice recently asked for more information.5  The request will push back the timeline for the merger. Amedisys believes there is little geographic overlap between Amedisys and LHC Group and that the scrutiny is a result of other UnitedHealth Group acquisitions.

Optum Amedysis

Optum Remains Optimistic

In a press release about the merger, Optum CEO Patrick Conway, M.D. said, “Amedisys’ commitment to quality and care innovation within the home, and the patient-first culture of its people, combined with Optum’s deep value-based care expertise can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth.”6

Even with the recent acquisitions and mergers, if this deal with Amedisys proceeds, Optum will have only a 10% market share across the U.S. For this reason, as well as the demand for home care far exceeding the supply, Optum believes this merger will be approved.

Opinion

Should a company that brokers health insurance also be allowed to be the provider of care? In this author’s experience, job-based healthcare insurance does not come with many options. There may be different levels of care to fit your budget, but the insurance company is already chosen by the employer. This means that employees and their families choose to have health insurance or not but cannot choose the insurance company.

Home Care, Hospice, Post-Acute Care, Palliative Care, and other in-home services are very personal. The company you choose and the care provider you get have to fit your needs and personality and there is a high level of trust needed to allow a stranger into your home when you are in a vulnerable state. If the insurance company is also providing the care, the option to find a care provider that suits the level of trust needed almost disappears.

Oversight

In 2021, President Joe Biden signed an executive order for more vigorous oversight of the healthcare market. Mergers and acquisitions are being scrutinized more heavily to preclude monopolies of care. The FTC and DOJ, in response to this executive order, have proposed updates to antitrust guidelines that will make healthcare mergers and acquisitions more difficult.7

Medicare Advantage

Medicare beneficiaries enrolled in Medicare Advantage has now reached 50%, making insurance companies more involved in senior care than ever before.8  Insurance companies only recently increased the percentage of revenue spent on patient care to 80%, up from as low as 50% before 2010.9  Given these facts, it may be worth questioning whether the insurance companies have too much control over care now, and if the acquisition of care providers by insurance providers should be eliminated completely to avoid a complete takeover of healthcare by insurance companies that already focus more on profit than people.

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Kristin Rowan, Editor
Kristin Rowan, Editor

Kristin Rowan has been working at Healthcare at Home: The Rowan Report since 2008. She has a master’s degree in business administration and marketing and runs Girard Marketing Group, a multi-faceted boutique marketing firm specializing in event planning, sales, and marketing strategy. She has recently taken on the role of Editor of The Rowan Report and will add her voice to current Home Care topics as well as marketing tips for home care agencies. Connect with Kristin directly kristin@girardmarketinggroup.com or www.girardmarketinggroup.com

©2024 by The Rowan Report, Peoria, AZ. All rights reserved. This article originally appeared in Healthcare at Home: The Rowan Report. One copy may be printed for personal use: further reproduction by permission only. editor@therowanreport.com