Traditions Health has acquired Texas-based Area Community Hospice as well as AmeraCare Family Hospice and Home Health located near New Orleans, marking the company’s first entry into the Louisiana home health market. Traditions already has a hospice presence in that state. Financial terms were undisclosed.
Private equity-backed Traditions Health is a portfolio company of the family-owned investment firm Dorilton Capital Advisors. Headquartered in College Station, Texas, Traditions provides hospice, home health care and consulting services to an estimated 5,000 patients across 14 states.
“I am extremely excited to further expand Traditions’ care in both Texas and Louisiana,” said David Klementz, the President and CEO of Traditions. “This is a great accomplishment for our organization and we could not be more excited to welcome both Area Community’s and AmeraCare’s employees and patients into the Traditions family.”
Klementz took the helm at Traditions in April, succeeding Bryan Wolfe, who led the company for the previous 13 years. Klementz came into the role after spending more than 15 years at Encompass Health (NYSE: EHC), where he served as chief strategy officer.
Traditions Health has been active in the mergers and acquisitions market in recent years, completing 10 transactions in 2019 and 2020. The company acquired Illinois-based Harbor Light Hospice at the close of 2020, and purchased Oklahoma-based Centennial Hospice for an undisclosed sum a week after in mid-December. Traditions completed two deals on Physician’s Choice Hospice and Palladium Hospice in September that year, as well as the purchase of Oklahoma-based Faith Hospice in August.
This activity has continued in 2021. Acquiring four companies in January, Traditions Health has continued a strong growth trajectory into hospice and home health spaces.
The company entered the Louisiana hospice market with the acquisitions of Grace Hospice & Palliative Care and Heritage Hospice early in the year, while also beefing up its home health operations in Oklahoma with the purchase of Traditions Home and Secure Home.
Texas ranks 15th among the states in hospice utilization, with 52.8% of Medicare decedents electing hospice in 2018, according to the National Hospice & Palliative Care Organization. Hospice utilization in the Louisiana market was in line with the national average at 50% in 2018. Utah has the highest rate of utilization at 60.4%.