Serving the home health, home care and hospice industry since 1999.
by Tim Rowan, Editor
On October 8, HHAeXchange , the New York-based provider of homecare management solutions for payers, providers, and state Medicaid agencies, announced the closing of a deal to acquire Annkissam, LLC. Boston-based Annkissam is a provider of software focused on state financial management service (FMS) organizations. The company's software supports self-direction programs that help those who are aging or have disabilities thrive in their homes and communities. We spoke with HHAeXchange CEO Greg Strobel and Annkissam co-founder and General Manager Mollie Murphy.
Strobel told us the two companies are a natural fit for a number of reasons, from age and culture to commitment to home care. "We touch over 4,000 home care providers and more than 500,000 lives per day now, and a good number of our home care provider customers also provide Self-Directed and Home and Community-Based Services," he said. "As the industry grows, the need for technology in the self-directed pay sector grows with it. We saw Annkissam as the leader in advanced technology for self-directed care and found that the needs are distinct but complementary."
As Ms. Murphy explains it, when a person qualifies with his or her state's HCBS or Self-Directed Payment program, there is always someone to help create a care plan and arrange for the various services the person might need. This is often a social worker or a nurse, or both, working together. Once the state Medicaid office approves the plan of care, a dollar amount is authorized.
Rather than have the patient receive the money directly to pay for in-home caregivers and other services, state Medicaid regulations say it must be paid to the service providers directly, or to a third-party acting as a fiscal intermediary. These intermediaries handle payments, payroll, taxes, I-9 and W-4 forms, and all the details the employer of an in-home caregiver would normally manage.
These intermediaries need management software to administer their services. That is the software Annkissam provides. "We work with 70 programs in 38 states, and interact with over 200,000 lives," Ms. Murphy told us. "Those numbers can only increase because we are seeing self-directed care programs growing 7.5 percent per year and Home and Community-Based Services at about 3.8 percent."
The combined organization creates a comprehensive SaaS platform for the delivery of advanced business, operational, and financial management technology to the rapidly expanding Medicaid homecare and self-direction services markets, a company news release stated.
The HHAeXchange CEO will lead the combined organization. He explained, "The growth of self-direction services is accelerating, fueled by the pandemic, an aging population, and scarcity of caregivers. As more states move Medicaid toward a managed care model, HHAeXchange with Annkissam is uniquely positioned to support these organizations. With the talented team from Annkissam, we look forward to offering technology solutions to a broader range of programs and organizations across our expanding national footprint."
Ms. Murphy concluded by stating, "We are thrilled to become part of the HHAeXchange family at this important time when the need is expanding for self-direction programs. Along with introducing our solutions to an even broader market, our existing clients will continue to work with the same team members they’ve come to know and trust."
Shasta Partners LLC acted as exclusive financial advisor to Annkissam on the transaction.
©2020 by Rowan Consulting Associates, Inc., Colorado Springs, CO. All rights reserved. This article originally appeared in Home Care Technology: The Rowan Report. homecaretechreport.com One copy may be printed for personal use; further reproduction by permission only. email@example.com