Ahead of this week’s upcoming earnings call, Encompass Health Corp. (NYSE: EHC) has locked in an agreement to acquire the home-based care assets of Frontier Home Health and Hospice. The company announced the news Monday.
The financial terms of the deal were not disclosed.
Birmingham, Alabama-based Encompass Health delivers care in both facility- and home-based settings. It has 138 hospitals, 241 home health locations and 82 hospices in 39 states and Puerto Rico. The company currently ranks as the fourth-largest home health provider in the nation.
Founded in 2008, Frontier provides home health and hospice care services in Montana, Alaska, Colorado, Idaho, Washington and Wyoming.
“At Encompass Health, our focus remains on aligning with high-quality healthcare providers to best serve patients across the country,” Mark Tarr, president and CEO of Encompass Health, said in a press release announcing the news. “Frontier Home Health and Hospice has a proven track record of success in its growth and patient outcomes and is an exceptional fit for our network. We look forward to welcoming Frontier’s 375 employees to our organization.”
The deal is slated to close in the second quarter of 2021.
Upon completion of the transaction, Encompass Health will add 20 of Frontier’s home health and hospice locations to its national network. In total, those locations brought in $36 million in revenue last year.
The acquisition of Frontier allows Encompass Health to serve new markets in Alaska, Montana and Washington, as well as expand its footprint in Colorado and Wyoming.
Encompass Health’s latest purchase comes a few weeks after news broke that April Anthony — the company’s original founder — would be stepping down from her role as CEO of the company’s home health and hospice segment. Anthony will officially leave the role in June.
“It’s been my honor to lead Encompass Health’s home health and hospice segment, and I am proud of what we have accomplished,” Anthony said earlier this month. “We have developed a premier network of nurses, therapists, social workers and home health aides across the country and have set a new industry standard for providing high-quality, cost-effective integrated care.”
The company is also still “exploring strategic alternatives” to its home health and hospice business, which it first announced last December.
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