Bringing integrated healthcare to patients
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YEAR INVESTED
2019
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LOCATION
Framingham, Massachusetts
Impact Metrics Source: All impact metrics reported by HealthDrive, as of December 21, 2022.
Impact Thesis
Preventative and regular healthcare services are critical to support the well-being of all people but are especially important for residents of long-term care and skilled nursing facilities. Early intervention and preventative services support better health outcomes for patients. HealthDrive is a specialty provider of on-site dentistry, optometry, podiatry, and audiology to residents in long-term care, skilled nursing, and assisted living facilities. By providing a comprehensive set of healthcare services on-site, HealthDrive supports increased access and improved quality of care to patients in extended care facilities, and provides consistent, cost-effective care.
Opportunity & Investment
Our investment in HealthDrive was driven by the conviction that we were backing a differentiated business led by a strong management team that could expand services and drive impact for patients. We determined HealthDrive’s model of providing on-site services resulted in better quality of care and greater convenience for vulnerable populations that were long-term residents of skilled nursing facilities (“SNFs”). We also saw the potential to expand the scope of HealthDrive’s service offerings, thereby enhancing the company’s impact on the overall health and quality of life for these patients.
In December 2018, Double Impact acquired a majority stake in HealthDrive. We believe we stood out because of our differentiated insights into the market position of the company, our track record of scaling similar businesses and our strong focus driving both the commercial and impact outcomes of our companies. As Dan Baker, HealthDrive CEO, noted, “It is incredibly important to align the mission and goals of investors with that of portfolio companies. As an organization focused on providing medical care to the most vulnerable, medically fragile population in our society, the opportunity to partner with an impact investing fund like BCDI was both critical and necessary to maintain our mission and drive significant growth.”
Value Creation
During our ownership we enhanced the impact and operational excellence of the company through the following key levers:
Product Line Expansion
We added two service lines through acquisitions: Behavioral Health and Primary Care. The opportunity to continue to expand primary care services across HealthDrive’s SNF footprint was a key source of interest from potential buyers when it came time for us to exit the business.
Geographic Expansion
We collaborated with the company to complete 13 acquisitions as well as greenfield expansion allowing entry into five new states Data as of Q3 2023. and the identification of additional highly attractive markets for future expansion.
Developing Impact Processes
We helped establish an impact council and collaborated on improved governance, employee benefits, metric tracking and reporting, DEI practices, as well as measuring and minimizing carbon intensity.
COVID Recovery
We supported the company’s navigation of the challenging COVID period that was characterized by steep declines in patients in SNFs and highly restrictive visitation policies. We supported the company in putting in place thoughtful and generous employee retention programs that enabled the company to quickly rebound as the pandemic restrictions waned.
Exit
Having achieved our underwriting growth plan, we worked with a sell-side advisor to launch a sale process. The company’s differentiated positioning as a comprehensive provider of care (including primary care), with a strong management team and available whitespace opportunity attracted significant interest from potential buyers. In August 2023 we sold HealthDrive to Cressey & Co., who is excited to continue scaling the company and its impact.
