Latest / Home Health Revealed (+Palliative and Hospice) / Growth, Cash Flow & Culture: Inside a Home Health Acquisition

Transcript

Growth, Cash Flow & Culture: Inside a Home Health Acquisition · Home Health Revealed (+Palliative and Hospice)

• 0:03
  Speaker A: Welcome to Home Health Revealed, the podcast for home health and hospice leaders who want to stay connected to the industry and ahead of what's next. Okay, so tell us who you are and who you're with.
• 0:14
  Speaker B: I'm Jessica Mandrell. I'm the owner of lifesaver Healthcare here in Columbus. We're a home health agency that provides both skilled and non skilled services.
• 0:24
  Speaker A: Okay, and you just engaged or just opened your agency altogether? Right.
• 0:29
  Speaker B: We actually purchased the agency from a previous owner, so it's been in business for 22 years.
• 0:34
  Speaker A: Okay, and tell me about that process. What was that like?
• 0:39
  Speaker B: It was a learning experience for sure, but actually overall fairly smooth. And once we kind of connected with the former owner and she felt comfortable with us and we felt comfortable with her, that really helped the whole process move forward. And she had a great system and wonderful people in place already. So it was an easy transition.
• 1:02
  Speaker A: So you kept the people. Yes, they're the most valuable asset. And so I think people, more people need to hear that. When you're talking about transitions, even mergers, acquisitions, you coming in, keeping the key people is so vital for that smooth transition.
• 1:18
  Speaker B: Yeah, that was huge for us. I mean, there you have so much knowledge of the business and the industry and everything. And I'm a nurse, but was not in home health care before this. So it was a transition and a learning experience for me too.
• 1:32
  Speaker A: What is something you wish you had known going into it that you're like, man, that was a hard lesson.
• 1:40
  Speaker B: I guess I would say that prior authorizations can be challenging and having your ducks in a row before you do anything is key.
• 1:51
  Speaker A: Yes, they're a really big deal.
• 1:53
  Speaker B: Yes.
• 1:53
  Speaker A: Around here. And as far as engaging in Ohio's association, how has that helped you with your agency?
• 2:04
  Speaker B: Well, so far, I mean, they've been a wonderful source of information. Their help desk I've already reached out to Lisa has been kind of helping to shepherd me through some of these changes and just giving me advice, looking at the business with me and saying, hey, we see where you could do this or this might help you. So, yeah, just a wonderful team to have on your side.
• 2:32
  Speaker A: Yes, I definitely agree as far as like future and growth. I mean, I think anytime you acquire a business, right, you go in with this, like, hopeful anticipation and it's going to be great and you maybe learn some lessons, you know, along the way. But what is your future plan and growth projection?
• 2:51
  Speaker B: I mean, we planned to take the business to the next level. The former owner had gotten it to a good place where she was comfortable and she was nearing the end of her career, and so kind of just let it hang out there naturally. And, you know, my husband purchased the business with me, and we're younger, and we're like, hey, let's see where we can go, where we can grow. I think the industry as a whole is growing, and I think it's kind of the future of healthcare is to be able to keep people at home. And so, yeah, we're excited for it.
• 3:25
  Speaker A: Is this your first event with the council? Yeah. So we're only half a day in.
• 3:31
  Speaker B: Yeah.
• 3:31
  Speaker A: What sessions did you listen in on? Kind of. What did you learn? What'd you think?
• 3:35
  Speaker B: Yeah, I was in the Palmetto session this morning for home healthcare, and honestly, it was actually a wealth of knowledge for me because I. I haven't really been involved in Medicare billing before jumping into this endeavor, so I learned, actually a lot of things from it. It was good.
• 3:56
  Speaker A: Did you jump into doing your own billing or did you have that team in place?
• 3:59
  Speaker B: No, that team was in place. Thank goodness.
• 4:02
  Speaker A: That was a godsend. Yes.
• 4:04
  Speaker B: Yeah.
• 4:05
  Speaker A: That's great. Because when cash flow ceases or has a little bit of a bottleneck, that's really a. That's a problem.
• 4:11
  Speaker B: Yeah. And that's been a huge thing for us with the transition is that the business had really great cash flow, and so it's allowed us to kind of muddle through what they call the J curve in acquisitions, where things kind of get a little rough as the new owners just try to settle in and figure out how things work. So that was a blessing for sure.
• 4:33
  Speaker A: Now you and your husband are working together in this business.
• 4:36
  Speaker B: Had you worked together before raising children
• 4:40
  Speaker A: and that is a job. Yes, I know, but how has that been like. Has that been a good thing? Is that something you wanted to do?
• 4:48
  Speaker B: Yeah, it's actually fantastic. He is like a tasker and a doer, and I get things done, and I'm like a big vision, kind of larger picture, networking kind of person. And so we actually complement each other really well, which has been helpful. That is a great.
• 5:07
  Speaker A: You sound like a great pair. That sounds like a business venture. Dynamite duo right there.
• 5:12
  Speaker B: I hope so.
• 5:13
  Speaker A: Well, what question have I not asked you that you'd love to share with people on a home health podcast?
• 5:19
  Speaker B: I think just that, like, what I'm learning about the industry and home health, it's all about the people, right? I mean, the patients come first, and, you know, you can do things the right way and you can make money and you can raise other people up with you along the way. And that's, like, the most exciting part about being in the ownership role of it. So.
• 5:41
  Speaker A: Yeah, just kind of pouring into everybody around you, raising up the next set of leadership. Yeah, I love that. Well, thank you so much for sitting down with me. It's great to have you here. I hope this is a wonderful first experience. We'll be at the annual as well, so love to see you there, too.
• 5:55
  Speaker B: Yeah, I'll see you there.
• 5:56
  Speaker A: Thanks.