Choice Health at Home Acquires Alpha Home Health and Hospice

Choice Health at Home has purchased Alpha Home Health and Hospice in Oklahoma for a confidential sum. This marks the company’s third 2021 acquisition in that state. 

Earlier this month the private equity firm Coltala Holdings purchased a stake in Choice, and that investment is spurring the company’s growth strategy of regional expansion throughout the Southwest.

Geography was a key factor in the decision to buy. 

“We are excited about Alpha because it gives us the eastern side of the Tulsa and Oklahoma City markets, in concert with Restore Home Health and Angelic Hospice in the greater Shawnee area,” Choice CEO David Jackson told Hospice News. “Alpha really gives us the Interstate 35 corridor from Oklahoma City to the Texas state border. This provides a really robust footprint in Oklahoma.”

Choice first came to the Oklahoma market in June with the purchase of Angelic Hospice as well as the home health company Restore Home Health. The company also acquired Texas-based Home Therapy of Austin. Financial terms for each of these transactions were undisclosed.

Hospice utilization in Oklahoma reached 50.4% among Medicare decedents during 2018, which is in line with the national average, according to the National Hospice & Palliative Care Organization. This makes the state 22nd in the nation for utilization. 

Seniors 65 and older represent about 16% of the state’s population of more than 3.9 million, according to the U.S. Census Bureau. This is expected to rise to 19.8% by 2075, according to 2012 projections from the Oklahoma Department of Commerce. 

Alpha’s two segments are neck and neck when it comes to patient census and revenue, according to Jackson. Historically Alpha has leaned towards home health, but its hospice revenues grew by 100% during 2021, 12 months trailing. 

Choice’s objective in addition to expanding its footprint is to provide a full continuum of care in the home. The company is aggressively pursuing both home health and hospice acquisitions in multiple Southwestern states in addition to fostering organic growth. The company’s same-store census saw substantial increases in Texas and Oklahoma during 2021, Jackson told Hospice News.

“We are really focused on the southwestern United States. We have some exciting developments in New Mexico that we expect to really take form in August,” Jackson said. “We will continue to be very acquisitive on the M&A front.” 

Jackson founded Tyler, Texas-based Choice in 2008 as a rehabilitation services provider. Choice launched its home health business in 2012 and began offering hospice in 2018. Choice’s more than 800 clinician employees provide care out of 40 locations in Texas, Louisiana and Oklahoma.

Through the Alpha, Restore and Angelic transactions combined, Choice will raise its patient census in Oklahoma to nearly 10,000 by the end of this year, up from 7,200. 

While considering the latest acquisition, Jackson saw cultural symmetries with Choice and the leadership style of Alpha CEO Carl Ganter, a 25-year veteran of the hospice industry. He will remain as an executive in Choice’s Oklahoma operations, as will two of Alpha’s nursing leaders.

“We were really excited about the people involved in the transaction as well as what amounts to 11 new service sites,” Jackson said. “Carl and his team combined bring close to 100 years of experience to the table. Welcoming them is imperative to build a great organization and stay poised for future success and growth.”