Tyler, Tex.-based Choice Homecare of Texas LLC., a holding company focused on health care businesses, has acquired Legacy Hospice, also based in Tyler and Sulphur Springs, Tex., for an undisclosed amount.
Legacy will rebrand as Choice Hospice. The transaction marks Choice’s fifth acquisition since Jan. 1, 2018. In addition to hospice, Choice’s holdings include home health care, skilled nursing, consulting, durable medical equipment and rehabilitation services throughout 100 Texas counties.
“Legacy brings with it a tradition of service excellence that is a great fit for the culture of our company,” said David Jackson, president and CEO of Choice. “We feel very positive about the direction of post-acute care. This transaction, coupled with our activity in 2018, will allow for significant expansion of services and coverage for our patients and customers.”
Art Taucher, owner, and the CFO of Legacy Hospice, will transition to Choice in a leadership role focused on further expansion of the company’s hospice footprint.
The Texas hospice M&A market has been heating up in the first quarter of 2019, largely due to favorable demographics and the fact that Texas is not a certificate of need state.
Texas has the third largest elderly population in the nation, according to the Texas Demographic Center, a state institution. The number of Texans 65 or older grew by 49.5 percent between 2000 and 2014. Only California experienced a higher rate of increase among their senior population.
Earlier this year, Cornerstone acquired Boerne, Tex.-based All County Home Care and Hospice for an undisclosed sum, but the company is not alone in pursuing opportunities in Texas. A number of large providers are zeroing in on the Texas market during 2019.
VITAS Healthcare’s Inpatient Hospice Unit in late February began accepting patients in a new dedicated wing of Methodist Dallas Medical Center. The $2.8 million, 13,000-square-foot facility is expected to care for 800 hospice patients annually.
The nonprofit Hospice of Wichita Falls in February expanded its operations into northern Texas, financed through $12 million in donations. Also in February Traditions Healthcare Holding Company, LLC, a portfolio company of Dorilton Capital Advisors LLC, purchased Tyler, Tex.-based Hospice Connection.
Also in an earnings conference call last week, Amedisys CFO Scott Ginn indicated that the company “really has [its] eye on Texas” in regards to M&A.
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