Excelin Health, a portfolio company of the private equity firm Corinthian Capital, has purchased three Texas provider licenses as well as the company Grace Home Health in Louisiana. Financial terms for these transactions were undisclosed.
Excelin provides a range of home-based care services including home health, hospice, orthopedic rehabilitation, speech therapy, infusion and wound care, among others. The company provides care out of 19 locations across Texas and California. The Grace Home Health deal marks Excelin’s entry to the Louisiana market.
“We believe hospice is an integral component of our service model and look forward to the ability to support our Texas patients and referral sources,” said Alicia Marr, Excelin’s CEO. “The additional opportunity to expand our home health care delivery footprint into a contiguous state has also been a high priority for our team.”
The company has plans to expand its footprint in all three states in which it operates. It operates under five brands: Excelin Home Health, Advanced Home Health Services, and two others both called Advanced Hospice.
Demographic tailwinds have been fueling a thriving hospice market in Texas. The state has the third largest elderly population in the nation, according to the Texas Demographic Center, a state institution.
The number of Texans 65 or older grew by 49.5% between 2000 and 2014, the center reported. Only California experienced a higher rate of increase among their senior population.
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. Utah had the highest rate of utilization at 60.4%.
Utilization in Louisiana at 50% is slightly lower than the national average of 51.9%. About 12% of the state’s population are seniors, about 4.68 million people, according to the U.S. Census Bureau. The number of people in the state who are 65 or older is projected to rise 42% by the early 2030s.
Excelin’s PE backer Corinthian Capital is a private equity firm targeting investments in services, niche manufacturing, and distribution with EBITDA between $5 million and $30 million.
“The acquisitions of Texas hospice licenses and Grace Home Health represent Excelin’s fourth and fifth investments as part of our consolidation strategy in the home health and hospice space,” said Jackson Yang, vice president of Corinthian and Excelin board member. “Our view remains that the post-acute care model will continue to evolve and shift to a cost-effective home-based care setting.”
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