Home care provider bets on private pay medical services


A home care provider is making a bet.

And that bet is that the number of people who can afford private pay home care will decrease over time, and to win over that population, you have to be hyper-focused on it.

That is, in part, why Family Tree In-Home Care is becoming Family Tree Private Care.


The other reason is that the company has gone from what would be considered a family business (about $4 million in revenue in 2017) to a point where it is in every major market in Texas and Colorado, sometimes with multiple locations. . It was originally founded in 2011.

The rebranding is effective Tuesday in the North and Southeast Texas markets, and will be effective in “coming months” in Central Texas and Colorado.

“We knew the market was changing,” Daniel Gottschalk, president of Family Tree Private Care, told Home Health Care News. “We started really transforming our business a few years ago to really differentiate ourselves from the market. We wanted our brand to reflect that differentiation.”

Family Tree has acquired 14 companies in the last four years, with some of those companies still operating under their legacy brands. Logos, location names and all other branding will now be under the Family Tree Private Care umbrella going forward.

The company’s services include medical and non-medical home care, but all on a private pay basis, not through Medicare fee-for-service. In total, it has about 2,000 employees throughout its network.

“Rebranding, for example, unites a variety of acquired companies,” Gottschalk said. “We needed to unite brands and we also needed to unite systems. And we needed to have a shared vision that would really show the market exactly what it’s really about.”

Family Tree began its acquisition spree by acquiring other home care companies and later expanded into care management as well. However, what really changed things was the recent acquisition of a private nursing agency. He had already been providing private pay home health care, but had not done “as well as them,” according to Gottschalk.

Now those home health services are a bigger part of what the company does.

And while it has medical and non-medical home care capabilities in addition to care management, Family Tree doesn’t want to be a jack of all trades. At the same time, it does.

It wants to provide the most comprehensive private payment services it can to the population that can afford them. Part of the reason is to avoid a diversification of payment sources and thus a reliance on government controlled reimbursement rate increases or decreases.

“We can privately serve a family that wants really complex health care at home, or just a nurse doing a caring task,” Gottschalk said. “But for the most part, these are people who have really complex needs and want you to bring medical services into their own home.”

There is inherent risk in that approach, but the rebranding shows that Gottschalk and Family Tree are willing to bet on themselves, their direct care workers and their new brand.

It also allows them to increase staff salaries and become more competitive in the hiring market. Because the company relies on private pay, and traditionally wealthier clients, it can play with those salaries more smoothly.

“Obviously recruiting is still a struggle, as is finding high caliber people. … We are fighting the same battles as everyone else,” Gottschalk said. “But we’ve had the luxury of being able to pay the best caregivers on the market quite well, because we’re the best on the market for clients. We’re not always the most expensive agency in town for clients, but we’re up to the task. We are competitive, but in the highest percentages”.

Going forward, if the company can’t be that frontline private payment provider in a given market, it’s not interested in that market, Gottschalk said. Also, for now, the company wants to expand the markets it is already in under this unified brand.

At the same time, expanding to more states in the future is not out of the question in the longer-term future.

“We believe our community has long needed an exceptional curated care leader to emerge, and over the past decade, our team has worked tirelessly to fill that void,” said Alex Bonetti, founder and CEO of Family Tree Private Care, it’s a statement. statement. “I couldn’t be more proud to align our private nursing, nursing and care management service lines under a single identity that underscores our commitment to high-quality private care and strongly represents our purpose of transforming the aging experience.”