An affiliate of the private equity firm H.I.G. Capital acquired Reliant Rehabilitation Holdings, Inc., which provides therapy services to more than 800 skilled nursing facilities in 40 states.
“We’re excited to partner with H.I.G. for the next phase of Reliant’s growth,” Reliant CEO Chris Bird said in a press release announcing the acquisition. “H.I.G.’s healthcare knowledge combined with its demonstrated commitment to help companies consolidate fragmented industries will enable Reliant to execute on our growth plans. We will remain dedicated to helping our clients navigate the changes in the post-acute sector while maintaining our high standard of improving patient lives.”
H.I.G. managing director Alok Sanghvi said in the same press release that the firm was impressed with Reliant’s market position, quality metrics, and service offering.
“We look forward to supporting Chris and the team’s efforts to expand their offerings to more facilities, leverage the company’s strong management capabilities, and continue to provide high-level care to the company’s patients,” he said in the release.
Reliant, which is based in Plano, Texas, recently agreed to pay the U.S. government $6.1 million to resolve claims related to its Reliant Medical Management (RMM) program at certain SNFs. The government claimed that Reliant paid kickbacks to doctors and skilled nursing facilities to promote its rehabilitation therapy business. The government claimed that Reliant employed nurse practitioners at client nursing homes for no charge or for a nominal fee to induce facilities to enter contracts with Reliant.
Reliant did not formally admit liability in entering the settlement, and the claims remain allegations.
“RMM is a program we discontinued more than a year ago and we are happy to have this matter behind us,” Bird said in a statement about the settlement that was provided to SNN at the time. “We remain focused on our core contract therapy business of providing quality rehabilitation services to our customers and patients.”
Written by Maggie Flynn