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Home Care Company Civitas Reported to Be Exploring Options, Including a Potential Sale

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Home Care Agency For Sale

Home Care Agency For Sale

Civitas Solutions Inc. is a provider of home health care services to individuals with disabilities across the country. As has been the case with several other home health care companies, this one is beginning to explore various alternatives, including possibly selling to another company.

Allegedly, this exploration of a potential sale has not been overtly public knowledge, and while it may not impact the majority of the general public, it does offer some insight into how the home health care industry could be shaped in years to come. It’s not the first and it certainly won’t be the last home health service company possibly bought out by a private equity firm or other company, but it may indicate how small to medium-sized agencies and other companies within this industry operate in the future.

The Boston-based company operates under the brand name The MENTOR Network. It has approximately 23,000 employees and operates in 36 states.

In the Reuters article, Exclusive: Home healthcare provider Civitas explores potential sale – sources, written by Joshua Franklin and Carl O’Donnell:

“Civitas is working with an investment bank to explore a sale, the sources said, cautioning that the deliberations are at an early stage and that no deal is certain. Private equity firm Vestar Capital Partners owns just over half of Civitas and would seek to cash out on its stake, the sources added.

The sources asked not to be identified because the matter is confidential. Civitas and Vestar declined to comment, while Onex and BrightSpring did not immediately respond to requests for comment.

Civitas shares were up 13 percent at $16.58 on the news in late afternoon trading on Friday, giving the company a market capitalization of about $600 million.”

As insurance companies have been transitioning to a “value-based” reimbursement system, buyout firms have been taking advantage of these sale opportunities. Humana Inc. along with two private equity firms took over Kindred Healthcare Inc. last year in a deal that was valued at $810 million. United Health Group Inc. acquired DaVita Medical Group, a managed care provider, for nearly $4.9 billion.

As the benefits and cost of home health care continue to increase and as there is greater demand (with the baby boomer generation retiring as well as more Americans realizing the benefits of receiving quality care at home), combined with increasing financial challenges due to Medicaid cuts and hospitals facing fines if they don’t reduce readmission rates, the home care environment continues to evolve and as it does, these sales and exploratory options will likely continue pressing forth.

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Home Care Company Civitas Reported to Be Exploring Options, Including a Potential Sale
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Home Care Company Civitas Reported to Be Exploring Options, Including a Potential Sale
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Civitas Solutions Inc. is a provider of home health care services to individuals with disabilities across the country. As has been the case with several other home health care companies, this one is beginning to explore various alternatives, including possibly selling to another company.
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HomeCareDaily.com
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Valerie VanBooven, RN BSN, Editor in Chief of HomeCareDaily.com

Editor in Chief of HomeCareDaily.com at LTC Expert Publications
Valerie is a Registered Nurse, Author, and Co-Owner of LTC Expert Publications. Read More at http://www.LTCSocialMark.com
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