BrightSpring Health Services (Nasdaq: BTSG) is prioritizing the expansion of its home-based care services to create stronger synergies between its various service lines.

According to Jennifer Phipps, BrightSpring’s executive vice president and chief financial officer, the company plans to grow its home infusion, home-based primary care, and rehabilitation service lines. BrightSpring anticipates continued growth in its home health care segment, both in terms of service offerings and profit margins.

“Our home health care segment, we see good market growth in that, and we expect that to continue,” Phipps said at the 46th Annual Goldman Sachs Global Healthcare Conference on Wednesday. “We believe that we will be able to grow outside. We’re focused on initiatives that will allow us to grow outside to the market,wich is beneficial,and a number of initiatives that we’ve would [hopefully] expand margin there.”

The home health care segment for BrightSpring, which is based in Louisville, Kentucky, encompasses home health, hospice, primary care, rehab, and personal care services.

BrightSpring’s primary strategy involves generating high-quality leads and boosting volume across all business lines, while also encouraging collaboration among service lines to address patients’ diverse needs. Phipps cited the company’s CareRX medication management program as a successful example, noting that it has led to fewer hospitalizations compared to the average for home health patients.

Phipps noted that the CareRX program is not used by all home health patients,and the company is actively engaging with payers to secure appropriate reimbursement rates for these specialized programs.

Expanding the in-home primary care line will “unlock even more opportunities for us across the business,” Phipps stated. She emphasized that primary care acts as a central point of connection, as doctors and nurse practitioners conducting in-home primary care visits can identify and manage other health issues that could perhaps lead to hospitalizations.

The company is also focused on growing its rehabilitation program.

“It’s really about access and … better coordinated care that,again,is the reason you do this,” Phipps said. “We’re also doing this in order to be able to begin unlocking differential payment plans from a value-based care strategy viewpoint. We’re in the early innings of that, but as we are producing outcomes that are driving cost reductions in the system, we believe that we should be able to share in those savings.”

BrightSpring is primarily involved in upside value-based care models and is “trying to treat very carefully,” according to Phipps, preferring a cautious approach to risk management.

The company identifies its long-term care pharmacy and home infusion pharmacy services as the areas with the greatest potential for margin enhancement, Phipps added.

In addition to expanding its service lines, BrightSpring intends to continue its active involvement in mergers and acquisitions (M&A). The company has primarily concentrated on smaller, strategic “tuck-in” acquisitions, most of which originate from established relationships, according to Phipps.

“We have relationships and theoretical deals that we might be working on for five years, relationships that we’re building, understanding the highest quality providers in the market, building relationships with them, and then staying close to them over whatever time period that would be,” Phipps said. “That pipeline has never been longer.”

BrightSpring implemented a significant investment approximately three years ago, which has streamlined the company’s acquisition processes, Phipps explained. By transitioning from multiple operating systems to a unified platform, BrightSpring can now ensure accurate reporting and optimize its processes and infrastructure.

Phipps also addressed the announcement made on Tuesday by brightspring’s majority shareholder, KKR & Co. (NYSE: KKR), regarding its plans to sell 14 million shares of brightspring stock in a secondary offering, with the possibility of selling an additional 2.1 million shares.

Phipps suggested that the announcement of the secondary offering may have contributed to the decline in the company’s stock price this week. She noted that if the secondary offering is fully executed, KKR would hold just over 44% of BrightSpring’s stock.

“We have no reason to believe that they wouldn’t be extremely balanced in how they would approach an exit of BrightSpring, but they continue to be very supportive of our company, the growth track record, and ultimately, what we are going to deliver as a company,” Phipps concluded.

“it’s really about access and … better coordinated care that, again, is the reason you do this.”