This is a Joint Commission (JC) accredited home health agency near the USC Campus in Los Angeles. This agency was one of the largest agencies in Southern California with the agency having had a census a large as 400 patients and one of the largest staffs in the industry. The owner, who is a Registered Nurse and the current Director of Patient Care Services (DPCS) is motivated to sell, solely for retirement reasons. After 22 years in the industry the owner feels it is time to start enjoying her family and to work less. The owner is very passionate about her agency and she has stated that she would be able to commit at a minimum of 6 months to help in the transition from her to the new owner.
The average daily census is 50-60 patients, of which there is a 50% split between managed care and Medicare patients. The only reason why her census has declined is that she is no longer marketing as aggressively as she once did. She continues to get referrals from various hospital based referral sources to include Cedars Sinai Medical Center (Marina campus), Torrance Memorial and the Keck (USC) Medical Center. The owner is willing to work with the new owner in helping retain these referrals sources as well as to re-tap past referral sources. The fact that she has been in the industry for so long, affords her the ability to have healthy referral sources that have withstood the test of time.
Managed Care. One of the highlights of this agency is that the owner, many years ago, was savvy enough to enter the managed care market. Nowadays, it is virtually impossible for an agency to become a provider on the majority of the managed care programs. In fact, the majority of the panels are closed to new agency applications. This owner has a good number of good paying managed care contracts to include LA Care. What does this imply? Multiple referral streams to your skilled home health agency. The managed care referrals are those referrals that your agency can use to add an increased revenue flow.
Managed Care Contracts include:
2. Aids Healthcare Foundation
3. Anthem Medicare Preferred
4. Blue Cross of California
a.) Blue Cross PPO (Prudent Buyer) Plan
b.) Blue Cross HMO (CaliforniaCare)
c.) Blue Cross Plus
d.) CaliforniaCare PLUS
e.) Blue Cross Senior Secure
f.) Blue Cross Senior Select
g.) Blue Cross Senior Select Plus
5. Blue Shield Of California
6. Centinela Healthsystem
a.) Centinela Hospital Medical Center
7. Children's Medical Services (CCS)
8. Cigna Healthcare
9. Cypress Care
10. Good Samaritan Medical Practice Association, Inc.
13. Integrated Health Plan, Inc.
14. Labor and Industries
15. L.A. Care Health Plan
16. Medi 1/2 1/2cal
18. Medical Services Company (MSC)
19. Pacificare/Secure Horizons
20. Progressive Medical, Inc.
22. South Central Los Angeles Regional Center
a.) Employee Health Systems Medical Group
24. Torrance Memorial
25. Universal Care
26. United Healthcare
27. Veterans Affairs (VA)
28. Veterans Affairs Choice (TriWest)
Software/Electronic Based. The agency is currently using KanTime, a home health specific software package that has an incredibly easy user interface and it helps to coordinate all of the agency daily functions to include patient accountability, staff accountability, billing, plan of care generation and more. The agency as a whole has turned to electronic documentation and therefore electronic charts which have created an ease of use when it comes down to quality assurance (QA) management.
Survey. This agency completed their first survey in 1996! Their most recent JC deemed survey was on March 24, 2018 with minimal deficiencies and this means that their next scheduled deemed survey will be March 2021!
The most recent Medicare Home Health Compare results places this agency at a 4 out of 5 stars with compared to all agencies in California and all agencies on a nationwide basis. This is public information and it helps for consumers in deciding which home health agency to choose from excellent marketing tool!
The current location encompasses a 3100-square foot office with plenty of office space with an enormous conference room and plenty of parking. Insofar as the location, this agency can be left where it is currently with a lease agreement to be generated by myself, the listing agent, or it could be moved within LA County but only under the guidance of CMS to include the CMS distance for moving an agency. We can provide the buyer with a list of qualified Medicare consultants that can help the new owner with a Change of Location (CHOL) and the Change of Ownership (CHOW) paperwork.
This listing is not open to financing options. This is a cash only listing. We recommend any interested buyers to consult with their financial institutions, the SBA or other lending entities to seek information on financing options.
Escrow. This sale will be done via escrow, which means that the buyer will be protected via a UCC filing check. It also means that you are a serious buyer with an LOI in place, a purchase agreement in place, and a 5% earnest deposit in place with our escrow company. We also will be including our Park Regency Business Addendum to the sale package.
Our listing agent will make it a point to walk all parties through the sale/buy process with on-going communication. Serious buyers only.