St. Croix Hospice has extended its footprint in Wisconsin with a de novo in the Oak Creek community in the southeastern portion of the state. St. Croix is a portfolio company of the private equity firm H.IG. Capital, which acquired the hospice provider last year for an undisclosed sum.
The company has been aggressive on de novos. St. Croix opened seven new locations during 2020 and five so far in 2021. St. Croix’s approximately 900 employees care for more than 2,500 patients daily out of more than 40 locations in seven Midwestern states. The company expects further growth through 2021 through the addition of new locations as well as acquisitions.
“The St. Croix Hospice Oak Creek office is a natural extension of our Wisconsin teams and allows us to expand our services to more of the Milwaukee area,” said St. Croix CEO Heath Bartness. “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 Oak Creek and surrounding communities.”
St. Croix opened a previous Wisconsin de novo in June in the town of Hudson. 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.
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, concentrated in the Midwestern region, according to CFO Stephen Phenneger.
St. Croix currently operates in Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska and Wisconsin. While looking to continue expanding its footprint, the company is concentrating on the Midwestern region.
The company moved into Illinois earlier this year with the acquisition of Hospice Care of America, which it followed up with the purchase of a Silverado Hospice location in the same state. St. Croix Hospice entered Missouri last year by acquiring Serenity Care Hospice, and threw its hat into the Michigan market through the acquisition of CNS Hospice.
Companies featured in this article:
CNS Hospice, H.I.G. Capital, Hospice Care of America, Silverado Hospice, St. Croix Hospice
