If you have been in the market for a home health agency and or a hospice agency and you have the knowledge and the referral source(s) to create a positive cash flow, this is an opportunity that you need to know about. This sale is for a Joint Commission accredited home health agency AND a Joint Commission accredited hospice agency located near Glendale, California. The offices are strategically situated near each other in a newer industrial park location with plenty of parking. There are a few major freeway arteries that are within a few miles drive from the agency, allowing for an easy commute for you, your staff and for those ancillary providers that will be marketing and providing services to these two agencies. Both the home health agency and the hospice agency are currently under the same corporation with one owner.
By both of the agencies being under the same umbrella, you have certain advantages to include having intra-office communication by the nurses and other professional staff members. For example, if a patient is deemed a hospice patient, you would be able to transition the care much easier than two autonomous agencies. Also, since you have both agencies together, you are able to market to a wider pool of clients, meaning that referral sources now will view you as a one stop referral destination. The next benefit of having both agencies together is the fact that you can share resources such as DME Providers, Diagnostic Providers, Pharmacy Providers, and more.
Next, what is more appealing to me as the agent representing this sale is the fact that this agency is being sold with a plethora of HMO/PPO contracts that are NO LONGER taking contracts. For example, LA Care. Those of you who have experience in the home health and hospice marketplace know that having certain HMO/PPO contracts not only increases your revenue stream, but it also allows you to market to a non-Medicare market that oftentimes is being underserved. As an aside, these two agencies are now billing their HMO/PPOs electronically with a 2-3 week receivables cycle! And yes, both of these agencies are able to service and bill for Medicare clients.
Next, census. The hospice average daily census is at 15-20 patients and the home health average daily census is that 60-70 (Medicare only) not including the HMO/PPO clients. These two censuses are both creating a positive cash flow and the owner will definitely work with the new buyer in the transition. The seller as part of their goodwill will be introducing the new buyer to their referral sources.
Next, this agency is CLEAN! What does this mean? It means that you as a buyer will not be inheriting any liens, any judgements, any z-codes, any ADRs and no EDD issues. One thing that we would like to stress is that the home health agency recently went through their annual 5 chart ADR audit and all of the charts were processed as clean.
If this opportunity appeals to you, then it may be time to pull trigger and acquire these agencies to begin or to continue building your wealth. On this transaction, the seller will NOT entertain any type of financing! This is a cash based offer that will be done via an LOI and thereafter via an escrow office. All buyers will be asked to provide a recent POFs and to sign an NDA. No sensitive or confidential information will be given via any electronic means to include email, fax, text, copies and so forth. Serious buyers only.
Note: The Seller is working on spliting the two agencies to mitigate risk.