In this month’s Middle Market Junction podcast Dr. Sohail Masood, founder and CEO of KabaFusion Holdings, a home infusion services provider, sits down with Bill Weisbrod of Debtwire Middle Market to discuss the impact the 21st Century Cures Act will have on his company.
KabaFusion, which was recapitalized by BBH Capital Partners in 2014, is one of multiple home infusion companies affected by the Act. As more fully detailed in a Middle Market Memo earlier this month, as of 1 January, Medicare began reimbursing certain drugs provided by home infusion providers at a lower rate. An increased reimbursement for infusion services does not kick in until 2021.
Companies are expected to take an EBITDA hit as a result of the Act. In the short term, this is expected to affect several home infusion providers that have been targets of leveraged buyouts over the past few years, or that have otherwise leveraged balance sheets.
In this month’s edition of the podcast, Dr. Masood opines on how the Act will impact KabaFusion, some of the background behind the company’s decision to recapitalize in 2014, as opposed to an outright sale, and finally forecasts future consolidation in the industry.
CLICK HERE to listen to the podcast
CLICK HERE to read the Middle Market Memo on the issue