Client Success Story: Remedi SeniorCare Leverages Financing
A long-term care pharmacy needed access to capital to respond to a growing need for its innovative technology for safe, accurate medicine dispensing. What kind of financing solutions made sense as it expanded to new pharmacy locations? How could it finance equipment upgrades at existing locations? And how would it find financing specialists with the right expertise and efficient processes to support its growth?
Based in Baltimore, Remedi SeniorCare is an innovative long-term care pharmacy provider with a keen emphasis on resident safety.
As the exclusive provider of the patented PAXIT® medication administration system, the company has a long history of providing cost effective and highly accurate pharmacy medication pass services to long-term care facilities, including skilled nursing facilities and assisted living communities. “Medication pass”—or med pass—is a common term for the process of dispensing medicine to residents as ordered. PAXIT’s unique 24-hour, unit-dose packaging, organized by med pass time, increases accuracy, efficiency and safety in the med pass process.
Higher levels of accuracy and quality in medication delivery reduces waste and cost for the company’s skilled nursing and assisted living customers, their residents and families. These attributes have increased demand for PAXIT from current and prospective customers, producing high penetration levels in the industry.
To meet demand, Remedi SeniorCare needed to support its robust growth with equally robust financing. In doing so, it could acquire more medicine dosing and packaging systems and upgrade existing equipment, allowing it to expand into new facilities across the United States.
“Remedi SeniorCare is transforming the long-term care service model with cutting-edge technology, and fast and efficient access to capital is vital in our efforts.”
– John Gould, Chief Financial Officer, Remedi SeniorCare
With more long-term/post-acute care and assisted living facilities interested in its state-of-the-art pharmacy solutions, Remedi SeniorCare sought financing for new dispensing machines for pharmacy locations.
A relationship with Cain Brothers®, a division of KeyBanc Capital Markets® and a pre-eminent healthcare investment bank, enabled a new corporate credit facility for Remedi Senior Care. In addition, Cain Brothers facilitated Key Equipment Finance®’s role in providing progress funding, a lease that requires periodic disbursements to vendors for a percentage of the equipment or work completed.
“With its planned expansion, Remedi SeniorCare needed a well-rounded financing relationship that offered expertise in several areas,” said Wyatt Ritchie, managing director, Cain Brothers. “With Key’s collaborative approach to client success, our broader organization offered a holistic solution for the company’s financing needs over time.”
To meet demand, Remedi SeniorCare needed to support its robust growth with equally robust financing.
With this access to capital, Remedi SeniorCare expanded to new pharmacy locations and upgraded equipment at existing locations.
“Remedi SeniorCare needed to acquire financing for a good amount of equipment on order,” said Jay Archambeault, Senior Vice President, Bank Channel for Key Equipment Finance. “We were able to step up to the plate and provide access to capital to finance all of that machinery, and do it in a streamlined, efficient way.”
With access to $20 million in financing from Key Equipment Finance, Remedi SeniorCare added 18 medicine dispensing systems in several locations in the United States. One outcome was improving quality and continuity of care, which are critically important in electronic health record-enabled communities.
“The work of Remedi SeniorCare is inspiring,” said Jim Mestnik, Director, Capital Markets, Key Equipment Finance, “and with the support of financing, the company is increasing its positive impact on the staff of long-term care facilities and the residents who rely on safe, accurate pharmacy services.”
With its growth enabled, Remedi SeniorCare now supports more than 80,000 residents across 30 states and the District of Columbia.
“One of the important functions of Key Equipment Finance is to make the documentation process as smooth as possible,” said Deb Zamudio, Assistant Vice President, Key Equipment Finance, who led Remedi SeniorCare’s leasing process. “We know that if we take really good care of our clients, they will stay with us.”
Key Equipment Finance is here to help with more information on how to provide healthcare financing solutions to maximize benefits for your customers.
Contact Jay Archambeault, Senior Vice President & Director, Bank Channel at 703-429-2002