Establishing Competitive Advantage in Home Health with Scott Herman, CEO of New Day Healthcare

Host Roy Bejarano sits down with Scott Herman, CEO of New Day Healthcare, to discuss how home healthcare is evolving, the challenges of scaling a home care platform, and how AI is transforming care delivery. New Day Healthcare, founded in 2020, has rapidly grown to 120,000 patients, 7,000 team members, and 29 locations across five states, making it one of the fastest-growing home health providers in the industry.

In this episode, Scott shares insights into the importance of technology-driven home care models, how New Day differentiates itself from traditional home care providers, and why AI-driven analytics are crucial for improving patient outcomes. He also explains how Medicare Advantage is reshaping home care, why avoiding the acquisition "value trap" is essential, and how his company is pioneering a virtual-first home healthcare model.

Timestamps:

• [00:00] Introduction to the podcast and guest, Scott Herman, CEO of New Day Healthcare
• [02:00] Scott’s background: From paramedic and nurse to leading major home health platforms
• [06:00] How New Day Healthcare differs from traditional home care providers
• [10:00] Why a virtual-first corporate model reduces overhead and improves patient care
• [14:30] How New Day avoids the acquisition "value trap" when scaling
• [18:00] The role of AI in healthcare: How New Day uses predictive analytics to manage patient care
• [22:00] Why Medicare Advantage is driving major change in home healthcare
• [26:30] The challenges of integrating different EMRs and billing systems
• [30:00] How AI-driven automation is streamlining patient referrals and intake
• [35:00] The future of home healthcare: AI, predictive analytics, and strategic partnerships
• [40:00] Final thoughts and Scott’s predictions for the future of the home care industry

Key Takeaways:

• New Day Healthcare is revolutionizing home care with a virtual-first model. By eliminating corporate overhead and using AI-powered automation, New Day is able to deliver more resources to bedside care.
• AI in healthcare is transforming home health operations. Predictive analytics, AI-driven patient tracking, and automated referral processing are helping New Day reduce hospitalizations and improve patient engagement.
• Avoiding the "value trap" in acquisitions is key to sustainable growth. Unlike other home care providers, New Day focuses on middle-tier acquisitions and leverages AI to optimize operations instead of overpaying for premium assets.
• Medicare Advantage is forcing home health providers to rethink their business models. With 53% of Medicare patients now enrolled in MA plans, New Day is adapting to lower-margin, high-volume care models.
• Strategic partnerships must be carefully structured. Scott explains why many home care providers fall into inefficient strategic alliances and how New Day selectively engages in payer and provider partnerships.

Resources:

• New Day Healthcare Website https://www.newdayhealthcare.com/
• LinkedIn: Scott Herman https://www.linkedin.com/in/g-scott-herman-10a9a1178/

About Scott Herman:

Scott Herman is a home healthcare industry leader with over 30 years of experience in scaling home health, hospice, and personal care platforms. As the CEO of New Day Healthcare, Scott has built one of the fastest-growing tech-enabled home care companies in the U.S., focused on AI-driven care delivery and operational efficiency.

Healthcare, Healthcare Leadership, Healthcare Trends, Roy Bejarano, Healthcare Innovations, Healthcare Industry Insights, Private Equity in Healthcare, Home Healthcare, AI in Healthcare, Medicare Advantage, Patient Acquisition, Scott Herman, New Day Healthcare,