St. Croix Hospice, a portfolio company of the private equity firm H.I.G. Capital, has opened a new location in Hudson, Wisc., the company’s fourth de novo thus far in 2021.
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.
“The St. Croix Hospice Hudson branch is a team of exceptional hospice professionals who continue our tradition of excellent care in their communities,” said Heath Bartness, CEO. “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 in and around the Hudson community.”
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 company’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. St. Croix operates in Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska and Wisconsin. While looking to continue expanding its footprint, the company is concentrating on the Midwestern region.
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.
Adults 65 and older accounted for 17.5% of Wisconsin’s overall population during 2019, according to the U.S. Census Bureau, which reported that 11.6% of this same age demographic resided in the city of Madison. The Badger State’s population of seniors 60 and older was outpacing growth of other age groups in 2012 and projected to increase with an uptick of nearly 36% by 2030.
Hospice utilization in Wisconsin among Medicare decedents reached 55.1% in 2018, compared to a national average of 50.3%, according to the National Hospice & Palliative Care Organization. This was the eighth highest rate in the nation that year.
Companies featured in this article:
H.I.G. Capital, Hospice Care of America, Serenity Care Hospice, St. Croix Hospice, The Vistria Group
