Company Overview
American Healthcare Capital is pleased to introduce a Medicaid Home Care Agency for sale in Northwestern Pennsylvania. Established in 2016, the company is licensed to provide non-technical, non-skilled attendant services including activities of daily living, in-home personal care services, supportive care, and companionship care to patients across 18 counties.
Financial Overview
In 2021, the company generated gross revenue of $4,808,326 with a pre-tax profit of $762,956. In 2022, gross revenue grew to $6,601,843 with a pre-tax profit of $915,408. In 2023, gross revenue was $7,516,829 with an Adjusted EBITDA of $693,292 (9.22%). Through 9/30/24, gross revenue was $6,258,949 with pre-tax profit of $320,117. 2024 gross revenue is projected to be in the $8,000,000 range. The decline in profit margins beginning in 2023 is attributable in part to an increase in Overtime Expense.
The Company’s payer mix consists of 95% Medicaid, and 5% Private Pay/Insurance. The reimbursement rate for Medicaid is $21.48, and the company receives hourly rates between $25 – $30 for private pay and insurance. The company pays attendants an average hourly wage of $14.00. The Company bills an average of 30,000 hours per month. Their current average census is approximately 180, and they currently serve ten 24/7 patients. Approximately 90% of patients in their current census participate in the Medicaid Waiver program for CDPAP, and approximately 75% of their caregivers qualify for overtime pay.
Staff Overview
The current owners plan to pursue other endeavors after a sale but are available to assist during a reasonable transitional period. The remaining staff members are expected to transition with a new owner.
Asking Price
The sellers will consider competitive offers.
