New Day Healthcare, a home care company that serves an average of 12,000 patients daily in four states, has expanded rapidly through its innovative care delivery models. CEO G. Scott Herman, who founded the company in 2020, has focused on creating a high-volume, low-margin business based on nonepisodic care that works with Medicare Advantage plans. Part of that formula includes an emphasis on virtual care and not having a corporate office, which limits overhead costs, Herman explained to McKnight’s Home Care in a Newsmakers podcast.
The latest example of New Day’s innovative care delivery models is integrating a long-term therapy virtual staffing partner into its Texas Medicare Advantage (MA) business. New Day now is hoping to expand this model to other regions. This development, which entailed integrating an episodic care agency into a nonepisodic business, is an extension of the company’s “burning the ships" mantra, which means rethinking business in the wake of MA’s penetration, Herman said. Kaltroco North America, a private equity company that owns New Day, has helped the home care firm succeed with its belief in “doing well by doing good,” Herman said. And thanks to its diversified service lines, New Day has been able to weather continued home health Medicare payment cuts, as well as the 80/20 Medicaid rule. The company is building out its proprietary Carelytics software that allows it to handle chronically ill patients with a longitudinal care approach, predict when they are about to have problems, and intervene.
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Show contributors:
McKnight’s Home Care Editor Liza Berger; G. Scott Herman, CEO and Founder, New Day Healthcare