Healthcare

BrightSpring Expands Home Health To Strengthen Service Line Synergies

BrightSpring Health Services (Nasdaq: BTSG) is looking to increase synergies across its service lines by expanding home-based care programs.

Specifically, the company is looking to expand its home infusion, home-based primary care and rehab service lines, according to Jennifer Phipps, BrightSpring’s executive vice president and chief financial officer. Overall, BrightSpring is expecting its home health care segment to continue to grow in terms of service lines and margins.

“Our home health care segment, we see good market growth in that, and we expect that to continue,” Phipps said on Wednesday at the 46th Annual Goldman Sachs Global Healthcare Conference. “We believe that we will be able to grow outside. We’re focused on initiatives that will allow us to grow outside to the market, which is beneficial, and a number of initiatives that we’ve would [hopefully] expand margin there.”

Louisville, Kentucky-based BrightSpring’s home health care segment includes home health, hospice, primary care, rehab and personal care service lines.

BrightSpring’s core strategy across each of its business lines focuses on generating quality leads and driving volume growth, while also promoting synergies across its service lines for patients with multiple needs. The company’s CareRX medication management program is an example of this strategy, Phipps said, and has resulted in reduced hospitalizations compared to average home health patients.

Not all home health patients use the CareRX program, Phipps said, and the company is working with payers to ensure appropriate rates for these programs.

Expanding BrightSpring’s in-home primary care line will “unlock even more opportunities for us across the business,” Phipps said. Primary care connects its service lines because doctors and nurse practitioners who visit patients’ homes for primary care appointments can identify and address other issues that could lead to hospitalizations.

In addition to growing its primary care business, the company is seeking to expand its rehab program.

“It’s really about access and … better coordinated care that, again, is the reason you do this,” Phipps said. “We’re also doing this in order to be able to begin unlocking differential payment plans from a value-based care strategy perspective. We’re in the early innings of that, but as we are producing outcomes that are driving cost reductions in the system, we believe that we should be able to share in those savings.”

BrightSpring is primarily engaged in upside value-based care models and is “trying to treat very carefully,” rather than taking on risk, Phipps said.

The company sees its long-term care pharmacy and home infusion pharmacy as the greatest opportunity for improving margins, Phipps said.

While growing service lines, BrightSpring is also looking to maintain its robust M&A track record. The company has largely focused on small tuck-in deals, Phipps said, and most of its deals are proprietary and based on long-standing relationships.

“We have relationships and theoretical deals that we might be working on for five years, relationships that we’re building, understanding the highest quality providers in the market, building relationships with them, and then staying close to them over whatever time period that would be,” Phipps said. “That pipeline has never been longer.”

About three years ago, BrightSpring made a significant investment that now allows the company’s acquisitions to be more efficient, Phipps said. BrightSpring previously had multiple different operating systems, but by investing time and energy to move to a single platform, the company can now ensure proper reporting and better leverage its processes and infrastructure.

Phipps also commented on BrightSpring’s Tuesday announcement that its majority shareholder, the investment firm KKR & Co. (NYSE: KKR), planned to sell 14 million shares of BrightSpring stock in a secondary offering, with the option to sell an additional 2.1 million shares. 

The news of the secondary offering could have contributed to a drop in the company’s stock price that occurred this week, Phipps said. She said that KKR would own just over 44% of the company’s stock if the secondary offering is fully executed.

“We have no reason to believe that they wouldn’t be extremely balanced in how they would approach an exit of BrightSpring, but they continue to be very supportive of our company, the growth track record, and ultimately, what we are going to deliver as a company,” Phipps said.

The post BrightSpring Expands Home Health To Strengthen Service Line Synergies appeared first on Home Health Care News.

Picture of John Doe
John Doe

Sociosqu conubia dis malesuada volutpat feugiat urna tortor vehicula adipiscing cubilia. Pede montes cras porttitor habitasse mollis nostra malesuada volutpat letius.

Related Article

Leave a Reply

Your email address will not be published. Required fields are marked *

X
"Hello! Let’s get started on your journey with us."
Site SearchBusiness ServicesBusiness Services

Meet Eve: Your AI Training Assistant

Welcome to Enlightening Methodology! We are excited to introduce Eve, our innovative AI-powered assistant designed specifically for our organization. Eve represents a glimpse into the future of artificial intelligence, continuously learning and growing to enhance the user experience across both healthcare and business sectors.

In Healthcare

In the healthcare category, Eve serves as a valuable resource for our clients. She is capable of answering questions about our business and providing "Day in the Life" training scenario examples that illustrate real-world applications of the training methodologies we employ. Eve offers insights into our unique compliance tool, detailing its capabilities and how it enhances operational efficiency while ensuring adherence to all regulatory statues and full HIPAA compliance. Furthermore, Eve can provide clients with compelling reasons why Enlightening Methodology should be their company of choice for Electronic Health Record (EHR) implementations and AI support. While Eve is purposefully designed for our in-house needs and is just a small example of what AI can offer, her continuous growth highlights the vast potential of AI in transforming healthcare practices.

In Business

In the business section, Eve showcases our extensive offerings, including our cutting-edge compliance tool. She provides examples of its functionality, helping organizations understand how it can streamline compliance processes and improve overall efficiency. Eve also explores our cybersecurity solutions powered by AI, demonstrating how these technologies can protect organizations from potential threats while ensuring data integrity and security. While Eve is tailored for internal purposes, she represents only a fraction of the incredible capabilities that AI can provide. With Eve, you gain access to an intelligent assistant that enhances training, compliance, and operational capabilities, making the journey towards AI implementation more accessible. At Enlightening Methodology, we are committed to innovation and continuous improvement. Join us on this exciting journey as we leverage Eve's abilities to drive progress in both healthcare and business, paving the way for a smarter and more efficient future. With Eve by your side, you're not just engaging with AI; you're witnessing the growth potential of technology that is reshaping training, compliance and our world! Welcome to Enlightening Methodology, where innovation meets opportunity!

[wpbotvoicemessage id="402"]