BIRMINGHAM, Ala. and DALLAS, April 1, 2019 /PRNewswire/ — Encompass Health Corp. (NYSE: EHC), a national leader in integrated post-acute healthcare services, today announced it has entered into a definitive agreement to purchase substantially all of the assets of privately owned Alacare Home Health & Hospice (“Alacare”).
Birmingham, Alabama-based Alacare operates 23 home health locations and 23 hospice locations in Alabama and generated revenues of approximately $117 million in 2018. The transaction is expected to close in the second quarter of 2019, subject to certain customary closing conditions and regulatory approvals. Encompass Health will fund the purchase with cash on hand and borrowings under its revolving credit facility.
“Over the past 50 years, Alacare has built a remarkable legacy of providing exceptional home-based care for patients across Alabama,” said April Anthony, chief executive officer 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.”
John Beard, Alacare’s president and son of Alacare’s founder, Charles D. Beard Jr., stated, “We are fortunate to be able to choose Alabama-based Encompass Health from a number of interested partners. Due to their commitment to patient care and their employees, Encompass Health has been at the top of our list of home health and hospice organizations who are capable of continuing the outstanding care Alacare has provided over the last 50 years.”
Susan Brouillette, Beard’s sister and Alacare’s CEO added, “The Beard family is excited about the continuation of Alacare’s mission of service and care under Encompass Health. Alacare and Encompass Health have had a close working relationship for many years on policy and other issues affecting the industry and share core values and cultures. Today’s agreement furthers the companies’ shared mission and vision and will offer our employees continued opportunities to deliver quality home care and hospice service in the Alabama communities Alacare has been privileged to serve for half a century.”
The Alacare acquisition will expand Encompass Health’s home health and hospice services to new markets and complement existing inpatient rehabilitation services in Alabama. Encompass Health is currently the fourth largest provider of Medicare-certified skilled home health services. Post-closing, it will be among the top 10 largest hospice providers in the country based on Medicare reimbursements.
About Alacare Home Health and Hospice
Alacare Home Health and Hospice is Alabama’s oldest family-owned home health provider, with branches serving almost every county in the state. Since its founding in 1970 by the Beard family, Alacare has cared for thousands of home health and hospice patients and their families across Alabama. For more information, please visit www.alacare.com.
About Encompass Health
As a national leader in integrated healthcare services, Encompass Health (NYSE: EHC) offers both facility-based and home-based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. With a national footprint that includes 130 hospitals, 220 home health locations, and 58 hospice locations in 36 states and Puerto Rico, the Company is committed to delivering high-quality, cost-effective, integrated care across the healthcare continuum. Driven by a set of shared values, Encompass Health is the result of the union between HealthSouth Corporation and Encompass Home Health & Hospice, and is ranked as one of Fortune’s 100 Best Companies to Work For. For more information, visit encompasshealth.com, or follow us on our newsroom, Twitter and Facebook.