Traditions Health has acquired the Kansas City locations of Lumicare Hospice for an undisclosed sum. Lumicare operates in both the Kansas and Missouri sides of that metropolitan area. The transaction marks Traditions’ entry into both of those states.
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 16 states.
“We are extremely excited to expand our services to a new market,” David Klementz, president and CEO of Traditions. “Lumicare shares our mission of providing high-quality care to patients and their families.”
Traditions Health has been active in the mergers and acquisitions market in recent years, completing close to a dozen transactions in 2019 and 2020. This activity has continued in 2021. Acquiring four companies in January, Traditions Health has continued a growth trajectory.
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. Most recently Traditions bought Texas-based Area Community Hospice as well as AmeraCare Family Hospice and Home Health, located near New Orleans.
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.
Hospice utilization in Missouri reached 50.2% among Medicare decedents in 2018, which is in line with that year’s national average, according to the National Hospice & Palliative Care Organization. Utah leads the nation in utilization at 60.4%.
The proportion of seniors older than 65 in Missouri’s population is expected to reach 19.1% by 2025, up from 13.5% in 2000 and 13.6% in 2008, according to the U.S. Census Bureau.
Kansas was 12th in the nation in 2018 for hospice utilization among Medicare decedents at 53.3%. Missouri, at 50.2%, was 24th. The national average is slightly more than 50%.
The proportion of the Kansas population that is older than 60 is growing while the proportion that is under 60 is shrinking. The U.S. Census Bureau estimates that nearly 25% of Kansas residents will exceed that age by 2030, a 32% increase from 2012.
“Lumicare and Traditions were introduced by way of our consulting firm, Triavo Health. We represent the sellers but have strong relationships with agencies looking to acquire throughout the country,” Elyse Rafacz, manager of medical acquisitions for the M&A advisory firm Triavo Health, which assisted with the deal. “[The Kansas City market] provided good opportunity fo growth in elder care and hospice due to the aging population.”
Companies featured in this article:
