After completing 10 acquisitions over the last 24 months, New Jersey-based home care provider CareFinders Total Care is setting its sights on a state-wide reach and an expansion into neighboring Pennsylvania.
“We are planning to grow, grow, grow,” Linda Mintz, CareFinders’ co-chairman, told Home Health Care News.
The in-home care company, which started out as a personal care services provider, has been rapidly expanding and adding complementary services to reach a broader range of clients. The fragmentation of the industry and a lower reimbursement rate across the state of New Jersey has presented several advantages for the company’s acquisition charge.
“There’s a huge consolidation going on in New Jersey,” Mintz said. “The mom and pops are really struggling. We’ve been able to acquire some of the smaller agencies that are struggling with the lower reimbursement rates. Our strategy is to grow geographically in the state.”
Looking ahead, CareFinders plans to acquire a couple additional small locations in the Garden State before expanding into new territory. Currently, the company has two additional acquisitions under letter of intent. While CareFinders doesn’t have a specific allocation amount for acquisitions, executives are looking to grow organically and through acquisitions that are the “right fit.”
“We’re really focused on growing our private pay side of the business,” Mintz said. “We’ve acquired agencies anywhere from $1 million revenue up to $6 million in revenue. In the state, there are a lot of small mom and pops that are in the $1 million to $2 million range.”
When acquiring new locations, the company also does its best to maintain staff members and integrate home health aides and nurses onto its team, according to Mintz.
“We are growing so rapidly that we need people in all departments,” Mintz said.
The rapid expansion comes at the same time as another New Jersey-based home care company is jumping into the space to capture the opportunities in the fragmented state.
CareFinders is similarly seeing opportunities among the smaller mom and pop home care agencies, and the company expects to expand beyond the state’s borders within a year.
“I think we will definitely be out of New Jersey and we will be into Pennsylvania within year,” Mintz said. “The reimbursement rates are higher in Pennsylvania, and that makes it very attractive. The industry in Pennsylvania is highly fragmented just like it is in New Jersey.”