BrightSpring Health Services’ (NASDAQ: BTSG) growth strategy rests on three pillars.

First, the company targets patient populations with complex needs in large, growing markets. This is coupled with a drive towards volume growth and increasing recurring revenue through quality, sales and marketing efforts and the establishment of de novos and acquisitions. Third, the company works to build scale with a suite of diversified services, according to CEO Jon Rousseau.

“We benefit from our scale and complementary services, which allow for greater efficiencies, the deployment of best practices throughout the organization and enhance growth. We leverage our scale and are ever evolving the way we go to market, procure goods, and contract for services to drive these efficiencies,” Rousseau said in an earnings call. “With a continuous improvement mindset and culture. We drive acquisitions synergy through procurement and operational synergies and best practices enabled by our platform.” 

The company went public in January with a successful initial public offering (IPO). BrightSpring is a home- and community-based health care services platform that serves more than 400,000 patients daily. The company indicated its intent to go public in a Jan. 3 filing with the U.S. Securities and Exchange Commission, with a $1 billion IPO.

Prior to going public, BrightSpring was owned by affiliates of the investment firm KKR Phoenix Aggregator L.P. and Walgreens Co., a portfolio company of Walgreens Boots Alliance Inc. (NASDAQ: WBA). These stakeholders continue to hold the majority of Brightspring’s shares.

The company’s net revenue reached $2.7 billion in the second quarter of the year, up 26% from nearly $2.2 billion in the same period in 2023. Its provider services segment, which includes its hospice program, earned $616 million in Q2, a year-over-year increase from $570 million.

The company saw double digit growth for both home health and hospice during Q2, particularly as a result of hospital referrals, Rousseau indicated.

The company remains on the hunt for strategic acquisitions. Going forward, BrightSpring has an “overflowing” pipeline of transaction opportunities, according to Rousseau. This is evidenced by its definitive agreement to acquire Haven Hospice for $60 million, inked in June.

The transaction includes the purchase of two brands, North Central Florida Hospice Inc. and Haven Medical Group LLC. The nonprofit holds hospice certificates of need (CON) for hospice care in 18 Florida counties.

BrightSpring anticipates that Haven will grow into a $15 million EBITDA business, pending the deal’s closing and integration. Integration may take some time due to the need to convert Haven from nonprofit status to for-profit, Rousseau said. Among the benefits of the transaction is the opportunity to expand in a certificate-of-need state with a large senior population.

“[The Haven deal] is a good example of how we’re very opportunistic on M&A and the types of transactions we will do. We structured that very uniquely in a way that we think really works for the balance sheet,’ Rousseau said in the earnings call. “That business we will lean into from a quality and an operational perspective to try to drive operational and performance and with that, we would expect to see both volume, census growth and operational improvements and margin growth occur over time.”