Giving Home Health Care has secured a $300 million credit facility led by Brightwood Capital Advisors.
With that backing, GHCC plans to grow its patient population significantly. Acquisitions and de novos are on the table, but for now, the company is figuring out how to get the most of the markets that it already serves.
“The capital is more for growing the patient base, growing into new markets,” Brightwood Capital Managing Director Kunal Shah told Home Health Care News. “Acquisitions could be at play, I wouldn’t say they are at the forefront. But of course, the company will always be opportunistic with that.”
GHHC coordinates clinical and non-clinical home-based care for patients in Arizona, Colorado, Nevada, New Mexico, Texas and Utah. Though its patient population is diverse, GHHC specifically tailors its services to individuals involved in work-related accidents.
FS Investments had already made a strategic investment in GHHC, and therefore will be guiding GHHC on its growth trajectory.
“This opportunity, in particular, we found very attractive because they’re coordinating care for chronically-ill people who have had issues working in toxic environments, many of whom worked in these environments prior to a lot of the safety measures that have been put in place over the past couple of decades,” Shah said. “And we found that niche pretty attractive, because you have all these people who really need that care.”
On its end, Brightwood Capital Advisors is a private credit firm. It specializes in providing senior debt capital to businesses with $5 million to $75 million of EBITDA.
One of the primary areas of focus for Brightwood is health care, and home-based care specifically has come into the fold more recently. The company has worked with other home-based care providers in the past, but declined to disclose who those providers were.
“We like the aspects of it being a lower cost of care setting,” Shah said. “There’s been this shift to do the care for these patients at home, which is where the vast majority prefer to have the care done. We just knew that specific sub-sector of health care was an area that’s stable and growing. There’s also macro trends that are going to continue to help with growth.”
In terms of growth, GHHC will look to expand into other states, but, again, will likely do so after growing within its current markets.
Part of what sold Brightwood on GHHC is the latter’s up-to-date processes, something that can be harder to find in home-based care. In fact, Shah said that his firm has walked away from deals with other home-based care providers that hadn’t been as fastidious operationally.
“Brightwood’s healthcare sector expertise and partnership approach were vital in bringing this transaction to fruition,” Rushabh Vora, managing director at FS Investments, said in a statement. “With Brightwood as our trusted partner, we are confident that Giving Home Health Care can further its mission to help a broader range of beneficiaries receive the medical services they need to live comfortably.”
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