Giving Home Health Care received a $300 million loan led by Brightwood Capital Advisors.
With this support, GHCC plans to significantly increase the number of patients. Acquisitions and de novos are expected, but for now the company is figuring out how to get the most out of the markets it already serves.
“The capital is more about growing the patient base, entering new markets,” Brightwood Capital managing director Kunal Shah said in an interview with Home Health Care News. “Acquisitions can make a difference, I wouldn’t say they’re at the forefront. But, of course, the company will always act opportunistically.”
GHHC coordinates clinical and non-clinical home care for patients in Arizona, Colorado, Nevada, New Mexico, Texas, and Utah. Despite the diversity of patients, GHHC specifically tailors its services to people affected by industrial accidents.
FS Investments has already made strategic investments in GHHC and will therefore guide GHHC on a growth trajectory.
“This opportunity in particular seemed very attractive to us because they are coordinating the care of chronically ill people who had problems working in toxic environments, many of whom worked in these environments before a lot of safety measures were put in place. over the past couple of decades,” Shah said. “And we found this niche quite attractive because you have all these people who really need this care.”
On the other hand, Brightwood Capital Advisors is a private lending firm. He specializes in providing senior debt capital to businesses with EBITDA between $5 million and $75 million.
One of Brightwood’s core businesses is healthcare, and home care has become especially popular in recent years. The company has worked with other home care providers in the past, but has declined to disclose who those providers are.
“We like the fact that it is a lower cost of patient care,” Shah said. “There has been a shift towards caring for these patients at home, where the vast majority prefer to provide care. We just knew that the particular health subsector is a stable and growing area. There are also macroeconomic trends that will continue to drive growth.”
In terms of growth, GHHC will look to expand into other states, but again will likely do so after growth in its current markets.
Part of what Brightwood sold at GHHC was the latter’s state-of-the-art processes, which can be harder to find in home care. In fact, Shah said his firm turned down deals with other home care providers that weren’t as demanding on the job.
“Brightwood’s healthcare expertise and partnership approach was critical to making this transaction a reality,” Rushab Vora, Managing Director of FS Investments, said in a statement. “With Brightwood as our trusted partner, we are confident that Giving Home Health Care will be able to fulfill its mission of helping a wider range of beneficiaries get the health care they need to live comfortably.”