Traditions Health, LLC has purchased privately owned Round Rock, Texas-based Guiding Hospice, growing the company’s footprint in the Austin area. Financial terms of the transaction were not disclosed. Traditions is a portfolio company of family-owned investment firm Dorilton Capital Advisors.
This is the latest in a string of acquisitions by Traditions Health, which operates in Texas, Arizona and California.
“I am extremely excited to extend our presence in Texas and serve the community of Round Rock and the greater Austin area,” said Bryan Wolfe, the president and CEO of Traditions.
The company earlier this year purchased Tucson, Ariz.-based Pathways Hospice for an undisclosed sum. Also in 2019, Traditions purchased Tyler, Texas-based Hospice Connection, and subsequently completed a transaction to obtain Reflections Hospice and Palliative Care in Mesa, Ariz.
The company entered the California market in 2018 through its purchase of ProCare Hospice Corporation, headquartered in Oxnard, Calif., for an undisclosed sum. Also during 2018, the company acquired Family First Hospice, Inc., and Family First Palliative Care, Inc., growing its presence in the greater Dallas area.
Demographic tailwinds are a significant driver of hospice providers’ interest in Texas. The Lone Star State 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% between 2000 and 2014. Only California experienced a higher rate of increase among their senior population.
Earlier this year, Cornerstone Healthcare Inc., a subsidiary of The Ensign Group (NASDAQ: ENSG) acquired Boerne, Tex.-based All County Home Care and Hospice for an undisclosed sum. Cornerstone followed up that transaction with the purchase of Texas-based Resolutions Hospice in May.
Along with Cornerstone, a number of hospice providers are zeroing in on the Texas market for growth 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.