The Care Team Beefs Up Texas Presence with Crossroads Hospice Acquisition

Hospice and home health provider The Care Team today completed its acquisition of Texas-based Crossroads Hospice in a deal that further expands the company’s footprint in the Lone Star State. Financial terms of the purchase were undisclosed.

Crossroads Hospice was established in 2018 and provides services across the Houston area and surrounding counties. Some Crossroads leadership will continue in a management and advisory role following the acquisition.

Winston & Strawn LLP acted as legal counsel to The Care Team, which operates in Michigan and Pennsylvania in addition to Texas. The company offers home-based care that includes hospice, nursing and occupational, physical and speech therapy services, employing medical social workers as well.

“We are thrilled to partner with the Crossroads team and expand our presence in Texas,” Jason Laing, founder and CEO of The Care Team said in an announcement. “Crossroads’ culture, quality of care and compliance standards are very well-aligned with those of The Care Team, making this an exciting combination.”

The Care Team declined to comment beyond the press release when contacted by Hospice News.

Hospice utilization among Medicare decedents in the Texas runs high, reaching 52.1% in 2018, tipping above the national average of 50.3% that year, according to the National Hospice and Palliative Care Organization.

Demographics are driving demand for hospice in Texas, with projections from the U.S. Census Bureau indicating that seniors will bulk up to more than 20% of the state’s population by 2030, up from 12.9% currently. A little more than 10% of the population in Houston alone is 65 and older, according to the Bureau.

The Crossroads Hospice deal marks the third acquisition since The Care Team partnered with Revelstoke Capital Partners in 2019. The Care Team in November purchased Pennsylvania-based Arcadia Hospice for an undisclosed amount, acquiring InTeliCare Home Health & Hospice in Michigan at the close of the previous year.

Revelstoke is a private equity firm based in Denver that focuses on building up companies in the health care space as well as related business service sectors. The firm holds roughly $4.3 billion in assets, completing 134 acquisitions since 2013.

Revelstoke previously indicated to Hospice News that the firm intends its investment to support the company’s efforts to build national scale, which includes acquisitions such as the Crossroads deal.

“We have enjoyed partnering with The Care Team in building its corporate infrastructure to support regional scale,” said Russ Cassella, managing partner at Revelstoke. “[We] look forward to adding density in Texas through this meaningful acquisition.”