Home-focused software and technology company AlayaCare has acquired Delta Health Technologies, a provider of home health solutions.
Traditionally a home care software enabler, this acquisition accelerates a strategy that AlayaCare has been honing in on: expanding significantly into the U.S. Medicare home health market.
“Our platform does lots of skilled care in other markets,” AlayaCare CEO Adrian Schauer told Home Health Care News. “But in the U.S., we’ve predominantly done private-duty nursing, home infusion, pediatrics and a few other niches where Medicare isn’t the payer. We were already on a journey into the home health and hospice space, but this is an accelerator for us.”
Based in Montreal, Canada, AlayaCare works with over 500 home care agencies in the U.S., Australia and Canada. It provides support in clinical documentation, remote patient monitoring and mobile caregiver functionality, while also leveraging artificial intelligence-based predictive models.
Through the acquisition, it will tack on an additional 100-plus new customers to that count and also gain 45 employees from Delta Health.
The Pennsylvania-based Delta Health provides resource management and billing support to home health, home care and hospice agencies.
Being able to acquire an existing home health software company, in lieu of building a customer base in the sector from the ground up, was crucial for AlayaCare. But the expertise that the onboarding employees will bring may be even more important, Schauer said.
“The acquisition will make [that entrance into the market] substantially easier,” Schauer said. “But, in addition to the customer base, they also have almost 50 employees who’ve been in this space for a long time. So it’s about both of those things.”
The acquisition comes on the heels of a massive Series D funding round. The company announced in June that it had raised $185 million, bringing its funding total to about $206 million USD overall.
“We’re going to continue to invest very heavily in [research and development] in order to improve and expand the platform,” Schauer said at the time. “And also to go into adjacent parts of the home care market.”
AlayaCare’s goal is not dissimilar from many home-focused providers and health systems in the U.S. Both want to be a one-stop shop for their patients or clients in a changing landscape.
Whereas providers want to build out capabilities across the care continuum, AlayaCare wants to be able to provide support in all of those areas, so providers only need one point of contact from a software perspective.
“These [large providers], they would prefer to have a single piece of software to run their business on, right?” Schauer said. “And part of the reason we are able to meet that need is because we’ve operated in Canada, which is a single-payer market, where you don’t have this division between skilled care, personal care and other areas. We built our platform from Day 1 to handle all those flavors of care. And so that we think we’re pretty uniquely positioned to have a single solution for multi-practice home care and home health providers.”
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