Texas-based Three Oaks Hospice entered the market in May 2019 and almost immediately completed three acquisitions. A year later, the organization is poised for continued expansion via acquisitions and de novos.
The company expects to extend its reach to a number of new markets within its home state of Texas during the second quarter of the year and early in the third quarter. Three Oaks currently operates locations in nine locales in Texas, Missouri, Kansas and Illinois, accounting for more than 200,000 patient care days annually.
“We have done a great job of building our Texas footprint, and we will focus on integrating these new locations and expanding our leadership team to further our employee-centric culture,” Three Oaks CEO Andrea Bohannon said. “Then, we will continue to strategically develop other underserved hospice markets outside of Texas.”
In February, Three Oaks acquired Peace Hospice & Palliative Care in Naperville, Ill., near Chicago. Financial terms were undisclosed.
In May 2019, shortly after the hospice opened its doors, Three Oaks completed three transactions to acquire operations in Dallas, Fort Worth and San Antonio for undisclosed sums. The three purchased organizations —Total Hospice & Palliative Care, ABS Palliative and Hospice Care and Fellowship Hospice — increased the Three Oak’s referral network to more than 200 sources.
The Texas hospice M&A market began heating up during 2019, with several transactions occurring in that state, largely due to favorable demographics and the fact that no certificate of need is required.
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.
Texas was 13th in the nation for utilization during 2017 with 52.1% of Medicare decedents electing hospice. Utah has the highest rate of utilization at 59.4%.
Given its rapid expansion, among other factors, the company has some capital to work with as it continues to grow. During 2019, Three Oaks Hospice received more than $21 million in private equity backing from Granite Growth Health Partners, Health Velocity Capital and Petra Capital Partners.
“Grounded in a collective mission to listen, care and serve, we are committed to building a best-in-class hospice company with a culture focused on patient care, clinical quality, robust technology and superior service,” said Bohannon. “We have a team of devoted individuals whose perseverance and ingenuity helped us to continue to grow and provide seamless care amid the global pandemic. While operations may look different, it has not changed our spirit and willingness to serve our vast communities.”