Having completed six deals in the past 16 months, New Day Healthcare is on the hunt for acquisitions using a three-pronged strategy.

New Day seeks three kinds of deals, which CEO G. Scott Herman describes as tuck-ins, market expansion and transformational. Tuck-in are smaller deals the company pursues within its existing markets and co-locating its multifaceted business lines, including home health, hospice, personal care, private-pay nursing and therapy services.

Through market expansion transactions, New Day works to spread to new regions or states, primarily in markets that are contiguous with its existing footprint, with some exceptions.

“Transformational” deals are large-scale transactions that can “transform a market,” according to Herman. Since its founding in 2020, New Day has completed two such transactions — Phoenix Home Care and Hospice in Missouri, Kansas and Illinois; and Home Care Providers in Texas, a statewide organization. Financial terms for these transactions were undisclosed.

When choosing new assets, New Day looks for companies whose culture aligns with their own that are strong with clinical quality and regulatory compliance.

“First of all, the culture must align with ours. It doesn’t have to be exact, but it must be very similar. They have to be very strong clinically, and then they’ve got to be compliant,” Herman told Hospice News. “They have to have at least a clear path to compliance for any compliance issues. So those are the things we look at, because we get a good start with them. We don’t have to clean those things up which would take more time, more money and really impact our ability to grow the business. Those three things must align”

New Day Healthcare cares from more than 150,000 patients annually across Texas, Missouri, Kansas and Illinois. The company is owned by the family office Kaltroco North America.

Since its inception, New Day has completed 15 acquisitions to date, with two more on the way in the near future. Two of those transactions took place during Q1 2025, the home health agency Patient Recovery Home Healthcare Services in Houston and the personal care company Christian Senior Care Services, also in Houston. Financial terms were kept confidential.

These deals followed three the prior year, including Good Samaritan Society, Compassion Hospice and Intrepid USA’s hospice operations in Missouri and Texas for undisclosed sums.

To finance acquisitions New Day relies on equity from Kaltroco, cash on hand and a $125 million senior credit facility with First Citizens Bank, Herman said.

“Because we built the organization to its current size, we were able to keep our debt low and our leverage very low,” Herman said. “So we’re currently using debt and being very, very conscientious about what we buy so that it meets our strategy.”

When purchasing a company, New Day generally does not rebrand its new assets. Having done this in the past, they found that rebranding sometimes cost them market share, so they ended the practice, according to Herman.

A key element of integrating new assets into New Day is implementation of its proprietary Carelytics AI platform. This can be done in some cases within three days, Herman said. The system gathers, retains and processes data from inbound and outbound data streams and calling centers as well as tech-enabled media and AI-driven care patterning to identify patients who are in decline and predict changes in their conditions.

Carelytics works with any electronic medical record system, eliminating the need to transition acquired companies to a standardized, company-wide EMR, Herman indicated.

“Our integrations leave the name intact, leave the management in place. We don’t build our models on a bunch of synergies. We leave the local leaders in place,” Herman said. “We created a system called Carelytics that sits over the top of all of our transaction systems and many of our business intelligence systems. We’re done in three days, lock, stock and barrel. So that’s been a great advantage for us, and what it all is driven toward less disruption at the bedside.”