Category: !News & Press

–       Partnership with Searchlight will accelerate growth in existing markets and support further expansion through M&A

–        Reflects Searchlight’s conviction that long-term tailwinds are driving the growth of the in-home care market

New York, (BUSINESS WIRE): Funds advised by Searchlight Capital Partners, L.P. (“Searchlight”), a leading global private investment firm, today announced the acquisition of a majority stake in Care Advantage, a leading at-home care provider in the United States. Terms of the transaction were not disclosed.

Founded in 1988, Care Advantage offers in-home care services to patients across Virginia, Maryland, Washington D.C. and Delaware. The company’s personal care aides, certified nursing assistants, skilled nurses and therapists provide individuals and their families with the care they need from the comfort of their homes.

Searchlight has acquired the business from BelHealth Investment Partners, a healthcare-focused investment firm. Searchlight is excited to support the company’s growth in its existing markets and accelerate expansion into new states across the U.S.

“For more than three decades, Care Advantage has enabled seniors to maintain independence in the comfort and safety of their own home,” said Timothy Hanold, Chief Executive Officer of Care Advantage. “We have become a trusted provider of care in the home, empowering individuals to live life to the fullest through the support of our compassionate and committed caregivers and clinicians. We look forward to partnering with Searchlight to build upon our strong legacy of care and to further ignite our mission of serving the community.”

Phil Bacal, Managing Director at Searchlight, commented: “We are excited to partner with Tim and the leadership team to grow the business and support its acquisitive growth strategy. We are confident that Care Advantage is well positioned to benefit from strong organic growth in the sector over the long term. The senior population increasingly needs lower-cost caregiving alternatives that allow them to age comfortably in their own homes.”

Eric Zinterhofer, a Founding Partner of Searchlight, added: “Care Advantage is essential to the health of its communities and the broader healthcare ecosystem. Its caregivers are special individuals who serve the senior population and enable the paradigm shift from ‘sick care’ to ‘health care’”

Searchlight was advised by Latham & Watkins and Edgemont Partners. Care Advantage was advised by Moomjian, Waite & Coleman, Norton Rose Fulbright and Cantor Fitzgerald & Co.

The transaction subject to receipt of customary regulatory approvals and is expected to close by the end of July.

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Before we close out 2020, I wanted to share with my recent “year in review” video message. 

There is no question, 2020 is a year unlike any other. As expected, our caregiving family remained brave and resilient throughout. I am immensely proud of the hard work and unwavering commitment everyone brought to the table to keep over 11,000 clients and patients at home and safe.  

I am very optimistic about the New Year and all we will achieve together. Remember to wear your mask, wash your hands and keep your bubble safe. 

Wishing you and your family the happiest of Holidays!

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People everywhere are adapting to the new normal. Home health care is no different. Our industry is responding not only to the coronavirus, but also to long-term trends in health care.

Heading into the 2021 General Assembly session, Virginia lawmakers should prioritize fully funding Medicaid reimbursements for home health care as a critical bridge to a new normal for this industry.

As Virginia pursues the laudable goal of raising the minimum wage, it creates a dollar-for-dollar impact on home care. The minimum wage is set to rise 30%, but the General Assembly only has committed to a 7% increase in Medicaid reimbursements to date — creating a real funding shortfall.

If this shortfall is not addressed, Medicaid patients might lose access to the high-quality home health care services provided by home care agencies.

Care Advantage was founded in Richmond in 1988 to provide care and support to those who need it. Now we serve more than 11,000 patients with nearly 8,000 employees — providing assistance and care for patients in their home, keeping them close to loved ones and familiar surroundings. Our service territory includes 90% of the Virginia population.

Our success gives us insights on long-term trends we cannot ignore. One in four Americans — and more than two-thirds of those who are older than age 65 — have multiple chronic conditions. By 2050, there will be more than 87 million Americans older than 65, significantly increasing the need for a health care system that meets those needs.

As these trends accelerate, policymakers will need to find long-term solutions to ensure people can access the care they need. There are a variety of ways to achieve that goal. But before we get there, Virginia must make sure it fully funds Medicaid reimbursements for home care.

Unlike many home care companies, Care Advantage accepts Medicaid patients, providing valuable care to a vulnerable population.

Agency-directed care is the bridge for Medicaid patients between consumer-directed care provided by a loved one and skilled nursing facilities. Agency-directed care allows patients to receive more specialized health care in their home, avoiding the need for other long-term support services in a facility setting.

The data bears this out.

Providing in-home care represents a 95% cost savings over a hospital stay. And studies show that at least one-third of patients in skilled nursing facilities could be cared for in home, with similar to better clinical outcomes.

Agency care also comes with more value than just the wage paid to the caregiver. We provide additional support from our medical staff, skills development for caregivers, and accountability for families and the commonwealth.

Agency-directed care also fills another critical need in our society: providing good-paying, purpose-driven careers.

Home care jobs often pay more than the minimum wage, while providing other benefits. At Care Advantage, those benefits include an “instant pay” option, educational scholarships and a career ladder that allows them to move from a personal care attendant to registered nurse.

Unless the General Assembly fully funds Medicaid reimbursement rate increases, agency-directed care for Medicaid patients might not be sustainable long term. This could create a gap in the care continuum at a time when our society cannot afford any fault lines in health care.

The General Assembly and the governor made laudable and important progress toward this goal in 2020. Despite the budget challenges caused by COVID-19, the commonwealth provided a 5% increase in Medicaid reimbursement rates.

Unfortunately, the 2% rate increase scheduled for next year does not provide nearly enough funding to make agency-directed home care sustainable in the long term.

Current rates already are low, making it difficult for agencies to pay caregivers, fund additional medical support and provide the training necessary for this critical part of the health care system.

As the minimum wage increases in the commonwealth, pressure on home care wages also will rise. This, in our view, is a good thing. As a company, we believe in a living wage for our employees.

But agency home care faces dollar-for-dollar pressure as the minimum wage increases. The minimum wage is set to rise 30% over the next several years (again, not something we oppose), but reimbursements only are set to rise another 2% in 2021 — creating a significant funding shortfall.

The General Assembly cannot overlook the importance of fully funding Medicaid reimbursements for home care.

If our leaders fail to act, patients on Medicaid could be left to fall through the cracks of a broken care system, pushed into nursing homes and tens of thousands of good-paying jobs could vanish overnight.

And taking the long-term view, shoring up this immediate need is the first step toward creating the new normal in health care and addressing the inevitable trends of an aging population beset with chronic conditions.

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Tim Hanold is CEO of Care Advantage Inc., a home care agency headquartered in Midlothian, with approximately 8,000 employees in Virginia.

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RICHMOND TIMES DISPATCH LINK

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All About Care and Paradise Home Care, (part of the Care Advantage, Inc. family of brands), and represent the skilled division of the company, offering Medicare-certified home health services, programs and resources, has announced the appointment of a new Medical Director, Dr. Gohar Abbasi.

Dr. Gohar Abbasi began his medical journey in Pakistan, earning his M.B.B.S. at Rawalpindi Medical College. He completed his residency at the esteemed Mercy Hospital in Pittsburgh, Pennsylvania. For nearly 25 years, Dr. Abbasi has amassed a depth of knowledge in caring for patients in-home, hospitals, rehab facilities and nursing homes.

Dr. Abbasi has been stationed all over the state of Virginia, working in large hospitals, rehab centers, a regional jail, hospice care, and more. Dr. Abbasi is board certified in three different medical practices, including Rehab medicine. Dr. Abbasi works closely with home-based facilities to extend a helpful reach to those with diverse needs and circumstances. Today, Dr. Abbasi is the Medical Director at Colonial Heights Rehab Center, working each day to improve the level of care that our industry provides.

“Dr. Abbasi has dedicated his career to ensuring care is given on the highest level. He delivers care that is patient centric, and we admire his practice philosophy that no patient feels forgotten.” Says Pamela Hopewell, Chief Operating Officer of Care Advantage, Inc., All About Care and Paradise Home Care. “His values align so well with ours of Compassion, Attitude, Respect and Excellence that we felt he was the ideal Medical Director to advise and lead our clinicians to deliver the absolute best care in reducing hospitalizations and promoting positive patient outcomes.”

Dr. Abbasi will play a key role on the skilled home health team which is made up of therapists and nurses who will benefit from his clinical insight and expertise. He will also advise on current patient focused programs offered by All About Care and Paradise Home Care as well as being involved in the development of new clinical pathways.

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ALL ABOUT CARE & PARADISE HOME CARE

Located in Richmond VA, All About Care & Paradise Home Care are Medicare certified skilled home health companies, committed to providing exceptional skilled care services to patients in their home. Our skilled home health professionals manage and evaluate the patient’s plan of care, while partnering with their physician to ensure continuity of treatment and best possible outcomes. We offer a wide range of services, programs and resources including Skilled Nursing, Physical, Occupational and Speech Therapies.

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Richmond, VA – December 18, 2019 – Care Advantage, a leading provider of home healthcare services in the Atlantic Mid-South and a BelHealth Investment Partners (“BelHealth”) portfolio company, announced the acquisition of Team Nurse Inc. and its affiliated entities (“Team Nurse”).

Headquartered in South Boston, Virginia, Team Nurse was founded in 2000 and currently operates 17 locations throughout Virginia. The Company provides both in-home personal care and skilled home health services and maintains a staff of over 400 caregivers. The business was founded by Steve Mize, a Virginia-based entrepreneur who has a long-standing relationship with Care Advantage stemming from a purchase of two Care Advantage branches in 2000.

Team Nurse’s rural locations dove-tail neatly into Care Advantage’s existing footprint. The result of which means a more comprehensive offering in terms of service and geographic coverage to all Virginian’s. The acquisition brings Care Advantage’s total number of branches to over 40 and are located throughout Virginia, Maryland, Delaware and Washington D.C. The Company services a mix of private-pay and Medicaid patients, as well as offers personal care services such as bathing, dressing, and companionship. In addition, Care Advantage also provides “skilled” services by licensed nurses and therapists through it’s All About Care and Paradise companies.

Tim Hanold, CEO of Care Advantage, said, “I am thrilled to welcome Team Nurse aboard. We have so much in common and our long history together makes this feel more like a family reunion than an acquisition. With our teams combined, we will further our position as one of the largest home health providers in the state of Virginia. We now have a service area of 90% of the state and provide a full continuum of care to our patients. Our enhanced footprint positions us well for additional growth in the Atlantic Mid-South.”

Steve Mize, founder of Team Nurse, added, “I have long admired Care Advantage and often thought we shared similar values and DNA. High clinical integrity, quality home care services, and deep local relationships are without question attributes we share. We are excited to become part of the Care Advantage family to continually provide exceptional levels of care.”

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Company Overview

Care Advantage is one of the Atlantic Mid-South’s leading privately held providers of home healthcare. The Company specializes in “one-on-one” quality nursing care in the home and is a one-stop shop for home healthcare services. Headquartered in Richmond, VA, Care Advantage’s family includes over 5,000 employees, serving over 7,000 patients per year across 40 branch locations. Located primarily in Virginia, as well as Maryland, Delaware and Washington D.C., Care Advantage is able to reach 90% of the state of Virginia, both in population and geography. The Company provides a mix of self-pay and Medicaid nursing and personal care services such as bathing, dressing, and companionship and also provides “skilled” services primarily by licensed nurses and therapists.

Care Advantage strengthens presence in Northern Virginia

Richmond, VA – January 8, 2020 – Care Advantage, a leading provider of home healthcare services in the Atlantic Mid-South and a BelHealth Investment Partners (“BelHealth”) portfolio company, announced the acquisition of Amaisa Home Care (“Amaisa”). This will be the 11th acquisition for Care Advantage within three years which continues to grow their personal in-home care presence that now covers approximately 90% of the Commonwealth of Virginia in geography and population.

Amaisa provides in-home personal care, companionship and respite care services to patients from its location in Leesburg, Virginia on both an hourly and live-in basis. The business was founded in 2014 and has established a strong reputation for high quality care. Amaisa will strengthen Care Advantage’s existing presence in Northern Virginia via its coverage area of Loudoun, Fairfax and Prince William counties.

Tim Hanold, CEO of Care Advantage, said, “As our neighbors in the northern part of Virginia, Amaisa stood out to us as the type of high-quality, compassionate organization that we love to partner with. Their award-winning culture was evident from day one and a testament to the quality protocols and strong relationships the team has established since its founding. We are thrilled to welcome them to the family and to enhance our market presence in Northern Virginia, which is one of our key regions.”

Michelle Maisus, President of Amaisa, added, “I am extremely excited that Amaisa is joining the Care Advantage family. Tim and the Care Advantage team have proven to be world class at providing quality homecare services. Our clients and caregivers alike can expect a very bright future working with Care Advantage, as they focus on growth and enhancing our top-notch patient care and experience.”

About Care Advantage

Care Advantage is one of the Atlantic Mid-South’s leading privately held providers of home healthcare. The Company specializes in “one-on-one” quality nursing care in the home and is a one-stop shop for home healthcare services. Headquartered in Richmond, VA, Care Advantage’s family includes over 5,000 employees, serving over 7,000 patients per year across 40 branch locations. Located primarily in Virginia, as well as Maryland, Delaware and Washington D.C., Care Advantage is able to reach 90% of the state of Virginia, both in population and geography. The Company provides a mix of self-pay and Medicaid nursing and personal care services such as bathing, dressing, and companionship and also provides “skilled” services primarily by licensed nurses and therapists.

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For further information, please visit:

Care Advantage  

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