St. Croix Hospice, a portfolio company of the private equity firm H.I.G. Capital, has launched a de novo location in Sioux City, Iowa. This is the company’s third de novo during 2021.
St. Croix opened seven new locations during 2020 and has been active in the mergers and acquisitions market. The company moved into Illinois earlier this year with the acquisition of Hospice Care of America. Financial terms of that transaction were not disclosed. In March 2020, St. Croix acquired Serenity Care Hospice in Missouri for an undisclosed amount.
“The St. Croix Hospice Sioux City office is a natural extension of our Iowa team, and allows us to expand our services to more communities in the area” said St. Croix’s Chief Clinical Officer Mandy Cosgwell. “Our expert clinical teams live in the communities they serve, which means they’re readily available to provide consultations, admissions and care for local patients and families.”
Cogswell was named a Hospice News Future Leader in 2020.
Iowa ranked seventh nationwide in hospice utilization among Medicare decedents in 2018, with 56.2% electing the benefit, according to the National Hospice & Palliative Care Organization. The national average was slightly more than 50% that year.
St. Croix’s average daily census hit more than 2,200 patients during 2020 from 40 locations in seven states. H.I.G. Capital acquired St. Croix from PE firm the Vistria Group last year for an undisclosed amount in one of 2020’s largest private-equity backed hospice deals.
During the pandemic St. Croix unveiled a comprehensive infection control program branded as the Safe+Care Promise to protect patients, families and staff from the virus. The company also launched its InTouch Family Connection program to facilitate connection between patients and loved ones amid the isolation brought on by COVID-19.
When selecting a new market to enter St. Croix looks for symmetries between potential new locations and their existing operations. They estimate the extent to which they can increase access to the hospice benefit and identify opportunities to establish relationships with new referral partners. The company plans to accelerate its de novo and acquisition activities during 2021, according to CFO Stephen Phenneger.
“On the M&A front we are absolutely looking at and evaluating alternatives and opportunities,” Phenneger told Hospice News in January. “We’ve been fortunate enough to get a fair amount of inbound interest from local operators who see us as a potential partner for them going forward.”
Companies featured in this article:
H.I.G. Capital, Hospice Care of America, Serenity Care Hospice, St. Croix Hospice, The Vistria Group
