BrightSpring’s PharMerica Brings Pharmacy Services to Adobe Healthcare Acquisition

BrightSpring Health Services (BrightSpring) has purchased Abode Healthcare from Summit Partners with a reported valuation of $775 million. The transaction is projected to bring the combined company roughly $6 billion in annual revenue.

Brightspring is a portfolio company of the global investment and private equity firm KKR & Co., which purchased the company in 2018 for approximately $1.32 billion. As part of this transaction, BrightSpring merged with PharMerica Corporation (PharMerica) to become a leading provider of home and community-based health and pharmacy services for high-need and medically complex populations.

Approximately 80% of BrightSpring’s services are provided in the home, primarily serving senior patients and those with behavioral health care needs. The company has been expanding into various specialized health care markets, purchasing Advanced Home Care’s (AHC) home health and specialty infusion businesses in March 2020 for an undisclosed amount.

AHC is a leading home health and infusion pharmacy company, having served Georgia, North Carolina, South Carolina, Tennessee, and Virginia for almost 30 years. AHC’s home health team will join BrightSpring’s Adoration Home Health and Hospice business and will operate as Advanced Home Health. The infusion and specialty pharmacy teams will join PharMerica’s Amerita division and will operate under the name Advanced Home Infusion.

Adobe Healthcare offers these services in about 10 states including Alabama, Arizona, Colorado, Iowa, Indiana, Minnesota, Nevada, Ohio, Pennsylvania and Texas.

PharMerica, with more than 100 long-term care pharmacies in over 45 states nationwide, employs approximately 5,500 employees and pharmacy professionals. PharMerica is broadening its reach to partner with operators that serve people with intellectual and developmental disabilities, while also increasing concentration in the nursing home market.

BrightSpring planned, at the time of its merger with PharMerica, to refine its three-pronged strategy focused on pharmacy, non-clinical home care, and highly clinical intermittent home health care services, all with a care management overlay to enable integrated care. BrightSpring plan to focus on three elements:

  • Pharmacy services, the daily medication management component.
  • Non-clinical day-to-day caregiving components that revolve around social determinants of health.
  • Clinical services provided on a more intermittent basis when required.

 

Takeaway: Acquiring Abode is as part of BrightSpring’s overall strategy to build out complimentary services and expand integrated care for complex and in-person patient populations with chronic comorbidities