BIRMINGHAM, Ala. (April 3, 2019)—Encompass Health Corp., the fourth-largest provider of Medicare-certified skilled home health services, will buy the assets of the privately owned Alacare Home Health & Hospice.
The companies announced the deal on April 1; the terms were not disclosed. Birmingham, Alabama-based Alacare operates 23 home health locations and 23 hospice locations in Alabama and generated about $117 million in revenues last year.
"Over the past 50 years, Alacare has built a remarkable legacy of providing exceptional home-based care for patients across Alabama," said April Anthony, CEO of Encompass Health's home health and hospice business. "Encompass Health is committed to upholding and building upon that legacy and is pleased to welcome Alacare's employees and patients to our company."
Alacare President John Beard said the company, which was founded in 1970 by his father, had Encompass Health “at the top of our list” of organizations “due to their commitment to patient care and their employees.”
The purchase, which is expected to close in the second quarter of 2019 subject to regulatory approvals and other conditions, will make Encompass one of the top 10 largest hospice providers in the country based on Medicare reimbursements.
Encompass has already seen growth in its home health and hospice business, with a 21% increase in revenue from the fourth quarter of 2017 to the fourth quarter of 2018, from $206 million to $250 million. Their hospice segment grew 74% year-over-year, with an overall revenue of $35 million in the fourth quarter of 2018.
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