Bain Capital Double Impact, the impact investing arm of Boston-based Bain Capital Ventures, hopes to snare a bigger share of the health care industry pie with the acquisition of HealthDrive, a provider of on-site dental and health services in skilled nursing facilities, assisted living and long-term care communities.
Bain acquired the 30-year-old company from Boston-based private equity firm Riverside Partners, and declined to share the financial details of the transaction.
Headquartered in Brookfield, Wisconsin, HealthDrive offers on-site dentistry, podiatry, audiology and optometry at skilled nursing facilities, assisted living communities and other long-term care sites. The company serves over 200,000 residents and employs 190 medical and dental providers nationwide. Eighty-five percent of the facilities the company serves are skilled nursing, but HealthDrive takes an agnostic approach to the care levels it serves, President Dan Baker told Senior Housing News.
“We’re a preventative care model, our program is focused on treating residents in place,” Baker said. “Anywhere where we have this congregant living environment that allows us to see patients in a centralized location, we’re willing to do.”
Baker said the new partnership with Bain will facilitate what has been an organic national expansion, and he is excited at the possibility of an increase in outcome-based reimbursement. Podiatry services make up the biggest demand for HealthDrive’s customers. Patients receive podiatry services more frequently — every 60-90 days, on average. Outcome-based reimbursement could develop into a new revenue opportunity, Baker said.
The partnership with Bain will also strengthen HealthDrive’s existing relationships with Medicare Advantage providers in its markets. Medicare accounts for nearly half of HealthDrive’s payer sources, while Medicare Advantage and other Medicare replacement plans make up another 15%-20% of revenue.
The HealthDrive acquisition is Bain Capital Double Impact’s second major health services acquisition. Last October, the company acquired and combined two regional health care firms, Arosa and LivHome, to create a national in-home provider platform.