It was a busy week for home health & hospice (HH&H) transactions. Results from our Deal Search Online database show there were four announced last week alone, half of September’s total so far. Half of the deals were completed by private equity-backed companies, which highlights the continued interest in HH&H from PE firms.
Jet Health, Inc., a portfolio company of Health Enterprise Partners, kicked off the week by announcing the acquisition of Texas-based Carrington Hospice Care, Inc. Jet Health acquires and operates home health care companies, which offer skilled nursing care, physical, speech and occupational therapy, rehabilitative care, medical social services, personal care and companion services. It was incorporated in 2016.
Carrington Hospice Care provides hospice services to the greater Dallas/Fort Worth marketplace. The company was founded in 2018. The acquisition marks Jet Health’s second one in the hospice arena, and furthers its strategy to offer hospice care in the current home health markets it serves. Funding for the transaction was provided by SV Health Investors and Health Enterprise Partners.
The Pennant Group, Inc. (NASDAQ: PNTG) also made news with its new purchase of assets from CMS Home Health Care in Brownwood & Coleman, Texas. Pennant’s Cornerstone Healthcare division already has home health operations in Abilene, Austin and Dallas, making this off-market acquisition a strategic fit for its Texas portfolio. No terms were disclosed. This is Pennant Group’s third deal of the year so far.
Traditions Health, LLC, a portfolio company of Dorilton Capital Advisors, LLC, expanded its presence in multiple states with the addition of two hospice agencies, Physician’s Choice Hospice and Palladium Hospice and Palliative Care. Physician’s Choice Hospice has five locations in Oklahoma and Palladium Hospice has six locations in South Carolina and two in Mississippi.
And Foothills Visiting Nurse & Home Care, a non-profit community-based agency based in Connecticut, added the neighboring Salisbury Visiting Nurse Association for an undisclosed sum. Founded in 1904, the Salisbury Visiting Nurse Association is the oldest home care agency in northwestern Connecticut. The provider is a state-licensed and Medicare-certified home health and hospice agency. The combined organization will be branded as Visiting Nurse & Hospice of Litchfield County, and the merged company’s daily hospice census ranges from 40 to 50 in addition to their home health and personal care population.