Hospice provider The Care Team has acquired InTeliCare Home Health & Hospice in Michigan for an undisclosed amount. The Care Team is a portfolio company of the Denver-based private equity firm Revelstoke Capital Partners.
In addition to hospice care, The Care Team providers in-home nursing services, physical therapy, home health care and speech and occupational therapies. The company also employs medical social workers. Revelstoke acquired the company in October 2019, indicating at the time that expansion to new markets would be a priority.
“[The Care Team] has made significant investments in the corporate infrastructure to build additional scale and improve patient care. We have enjoyed a strong partnership with The Care Team management and look forward to working with them on this transformative acquisition,” said Russ Cassella, managing partner at Revelstoke.
The InTeliCare transaction marks the first acquisition by The Care Team since it became affiliated with Revelstoke. For the time being the company’s growth plans are focused on the Great Lakes region. InTeliCare’s previous owners, Irene Tuttle and Todd Josephson, will remain with the company in advisory positions.
The transaction extends The Care Team’s reach through the lower peninsula of Michigan, where InTeliCare operates three locations. The company intends to leverage its larger geographic footprint in negotiations with payors and referral partners. Size and scale can be important considerations for payors as they select hospices to work with, particularly within Medicare Advantage. Health plans often prefer to work with providers that can cover a wide region.
“With the acquisition of InTeliCare, The Care Team will have the ability to treat patients across the entire lower peninsula of Michigan, which will allow us to be better partners to our payor and referral relationships,” said Jonny Miller, Vice President at Revelstoke.
U.S. Census data in 2019 showed that the Michigan population was aging at a faster rate than the rest of the nation. About 21 of Michigan’s 83 counties have a median age of 50-years-old or older, the highest in the nation that year. Nationally, that number is 38.2-years-old.
Michigan ranked 10th in the nation for hospice utilization in 2018 among Medicare decedents at 53.8%, compared to a national average of 50.1%. Utah led the nation in utilization that year at 60.5%
“The Care Team and InTeliCare share similar cultures and a strong commitment to patient care, clinical excellence and compliance. We see a tremendous opportunity to combine the strengths and capabilities of both companies,” said Jason Laing, CEO and founder of The Care Team.