WellSky, a technology firm that serves healthcare organizations, has recently announced its intention to acquire SaaS company ClearCare. As a provider of software solutions to personal care agencies, ClearCare's platform will help them develop a larger presence within the home-care segment of the post-acute and community care market.
“ClearCare adds an important new dimension to WellSky’s comprehensive offerings, and this acquisition strengthens …. [our] ability to better connect care across the continuum," said Bill Miller, CEO of WellSky. “ClearCare is an innovative market leader in personal care, and we look forward to building upon that legacy of success. With our shared vision of using interoperable technology to manage individuals across the care continuum, together, we can improve outcomes and close gaps in post-acute and community care.”
WellSky first started in 1980 as a small company with two employees. They built a reputation based on their blood-banking software and grew after going public in 1991. The business expanded into pharmacy management solutions through development and acquisitions and went private again after they were purchased by private equity firm Thoma Bravo in 2012.
Following Thoma Bravo’s investment in the Kansas-based company, they expanded rapidly with the acquisition of a dozen companies in just over six years. In 2014, they purchased Harmony Information Systems and AlphaCM, Inc. which enabled WellSky to break into the home and community-based care market. They also procured human and social service companies in 2016 that specialized in behavioral health, long-term services, information and referral services, and rescue missions.
In 2017 and 2018, there was aggressive expansion into the home health, hospice care and long-term care markets with the addition of Kinnser Software, Fazzi Associates, MEDTranDirect, and Rock-Pond, Blue Strata and Consolo Services Group. There have been some concerns raised amongst investors with WellSky’s recent acquisition of ClearCare – Moody's stated that the company's debt-funded acquisition "is credit negative because it will significantly increase leverage and the higher interest expense will reduce free cash flow."
Moody’s moderated their debt-related concerns with projections that ClearCare’s purchase would give them a good position within the personal care market and, along with their strong management performance, should help the company achieve results by end of 2020. ClearCare’s founder and CEO, Geoff Nudd, echoed this sentiment in his statement about WellSky’s operations.
“WellSky understands ClearCare’s mission to help personal care agencies operate efficiently and scale as payment models evolve and patient volumes shift to lower acuity settings of care,” Nudd said. “Their proven track record of success in post-acute care reflects our shared commitment to delivering excellent care to people in need, and we’re excited to combine our expertise and solutions to support our clients in even more ways.”
The company serves over 10,000 client organizations across the United States, including national hospital systems, post-acute care franchises, state agencies, and human service organizations. WellSky also has an international presence with operations in Canada, Ireland, Britain, South Africa, Holland, Belgium, Norway, Lebanon, and Singapore.