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Home Care by Black Stone Acquires Caring Hearts Home Health Care
Cincinnati, OH (November 21, 2011)—Home Care by Black Stone, a leading provider of home care services for 3,000 seniors in Southwest and Central Ohio, has finalized an acquisition of Caring Hearts Home Health Care. Because both firms offer assisted non-medical home care, skilled in-home healthcare, and geriatric care management to the elderly and disabled, there was an ideal synergy for both organizations, offered David Tramontana, Chief Executive Officer (CEO) of Home Care by Black Stone.
“Gloria Hayes, the founder and CEO of Caring Hearts Home Health Care, started her company in 1988 with the goal of making a positive, loving difference in the lives of the people she served, and a belief in the human potential of seniors and the disabled,” Tramontana says. “Her guiding principles are closely aligned with our mission at Black Stone, so it’s a perfect fit.”
Tramontana has worked closely with Ms. Hayes’ son Ronnell Spears, Caring Hearts’ Chief Financial Officer (CFO), for many years. The two have advocated together for additional state and local funding for the benefit of seniors. The acquisition allows Ms. Hayes to retire from her position, with Spears coming over to Black Stone as its new Chief Information Officer (CIO).
Ms. Hayes agrees. “When I decided to retire, I considered several offers to acquire Caring Hearts, but only one was from a service provider located in Ohio—Black Stone,” she says. “When I heard they were interested, I stopped considering other offers. Because Black Stone and Caring Hearts use many of the same providers and offer the same services, I think it’s a good fit. I truly believe in continuity of care, so our patients will retain their same aides and they won’t experience any changes in their level of care. “
Serving approximately 1,000 patients, Caring Hearts Home Health Care was the area’s largest minority-owned home health care company with annual revenues in excess of $6.5 million. With the acquisition, Tramontana anticipates Black Stone to reach $33.5 million annually, and the firm will now serve over 4,000 seniors.
Additionally, many of the current Caring Hearts employees will join Black Stone, offering a seamless transition for the clients. This includes 200 home care aides, 50 nurses and therapists, and 11 administrative staffers.
“This marks a 30 percent increase in the number of Home Care Aides we’ll have on-staff,” says Tramontana, who notes that Black Stone employed 750 Home Care Aides prior to the acquisition.
Historically, Black Stone has undertaken small acquisitions to expand the reach of its services geographically, Tramontana says. The Caring Heart acquisition will add two counties—Darke and Preble—to the other counties in which the company currently operates: Butler, Clark, Clermont, Clinton, Franklin, Greene, Hamilton, Madison, Miami, Montgomery, Shelby, and Warren counties.
“This acquisition, however, is bigger than all five previous acquisitions combined,” he continues. “Because there are already many synergies of service offerings between the two companies, our combined structure will help to strengthen the company, allowing us to provide services to more of the community. With that, we hope we can continue to help grow the concept of seniors aging in place.”
Tramontana cites anticipated cuts in reimbursements to care providers from state-funded Medicaid and Federally-funded Medicare as a key reason for the acquisition.
“Since the beginning of the year, the Governor and Office of Health Transformation have been working to modernize the fragmented health care delivery system for Ohioans, with more changes on the horizon,” he says. “One focus has been to integrate and coordinate care for consumers who are eligible for benefits from both programs (dual-eligible). The acquisition will allow us to make significant investments in technology and training to prepare for this changing landscape.”
Spears will lead Black Stone’s new information technology initiative, directing the integration of existing patient care management software systems with the company’s forthcoming investment in new technologies, such as electronic home monitoring of patients. The system will also maintain portable, confidential patient health records in an electronically-accessible format for access by physicians and other care providers as patients transition from an acute care facility (such as a hospital or nursing home) to home-based or residential-style assisted care.
“Integration of software platforms with regard to maintaining patient health and care records is a key component of delivering patient-centered care,” says Tramontana. “By having access not only to a patient’s electronic health record, but also to their complete disease management profile, physicians can more efficiently and effectively help a patient maintain or improve lifestyle and function—whether that patient is in an acute care situation or at home.”
The acquisition of Caring Hearts was finalized on November 21st— Black Stone will take over the day-to-day operations effective immediately. Clients will soon realize the benefits of the acquisition, including the investment in technology, increased staffing, and increased coverage area. Caring Hearts’ Kenwood, Ohio, headquarters will be merged with the Black Stone headquarters, also located in Kenwood, however, the former Caring Hearts locations in Greenville and West Dayton will remain open as Black Stone satellite offices. Black Stone can be reached at 513-891-1127.