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MOORESTOWN, N.J. (AP) — The founder of the nation's 10th largest home health agency says he won't be selling the New Jersey-based company and will instead donate it to a charitable foundation.
J. Mark Baiada told The Philadelphia Inquirer (http://bit.ly/291ozsl ) he plans to hand over Bayada Home Health Care, based in Moorestown, to a newly formed nonprofit that's "all mission-driven."
Baiada ruled out selling to a private equity, going public and leaving the company to his five children before settling on the donation. He founded the company in 1975 with $16,000 as a 27-year-old.
"It's hard to have a hereditary system that produces the competencies required to meet the demands of the public and the organization," Baiada said.
Bayada employs 23,000 people in 22 states and brings in $1.1 billion in annual revenue, according to company officials. Its services include home nursing, rehabilitation, therapy, and hospice. About 150,000 patients were served by the agency last year.
If it were for sale, Bayada would've likely been a target for a takeover due to its size. Similar health care companies smaller than Bayada have fetched sale prices equal to their annual revenue or more.
The transition to the yet-to-be-established public nonprofit is expected to take several years. Baiada's plan is for the charitable foundation to own 80 percent of Bayada, with the rest owned by his family and other employees.
"I found out that it's hard to give money away, give a company away, without tax consequences," Baiada said. "I just want to give it away for the public interest. We're working that through."
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Information from: The Philadelphia Inquirer, http://www.inquirer.com
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