Bristol Hospice Acquires Two California Providers

Bristol Hospice has purchased two California providers from the same owner — A Plus Hospice and NorCal Hospice. Financial terms were undisclosed. The deal comes as companies try to complete their transactions before year’s end, due to the potential for capital gains tax hikes in 2022.

Bristol is a large multi-regional player that has grown seven times larger since Webster purchased the company in 2017. The hospice operates more than 45 locations across 13 states, and its EBITDA exceeds $70 million, according to PE Hub.

M&A Advisory Firm Agenda Health represented A-Plus and NorCal in the transaction. 

“Territory and growth were probably two big factors for this opportunity. Bristol has been a leading buyer in that section of the country for quite some time,” Agenda Health CEO Al Veach told Hospice News. “That area of the country is their home turf, and so they’re always going to be competitive in that marketplace. This particular opportunity is a very healthy, attractive business and headed in the right direction, to say the least.”

Hospice utilization reached 46.1% in the state during 2018, according to the National Hospice and Palliative Care Organization (NHPCO). This trailed behind the national average of 50.6% that year reported by MEDPAC.

Bristol has been very active in the M&A market. The company completed nine acquisitions during 2020 and 14 in total since Webster purchased the agency.

Among its 2020 transactions were the purchases of Remita Health in September, Sojourn Hospice & Palliative Care in March and the hospice operations of Visiting Nurse Association of the Inland Counties (VNA). Financial terms for these transactions were undisclosed.

Bristol also purchased the California operations of Companion Hospice for a confidential sum, filling a gap in its geographic service area. Companion retained its Texas and Arizona locations.

“We all share a similar mindset that we are committed to top quality patient care standards and individualized patient-centered care,” Bristol CEO Hyrum Kirton said. “We look forward to joining this compassionate group of professionals with our existing offices in our service areas.” 

Bristol’s PE backers, Webster Equity Partners, are reportedly seeking buyers for the large hospice asset. A second round of bids began in March, with dollar amounts reaching as high as $1 billion, PE Hub reported.