The nonprofit Arkansas Hospice has acquired First Choice Senior Care (FCSC) of Little Rock for an undisclosed sum. FCSC provides companion services, personal care and other programs to address the nonmedical needs of the aging and seriously ill.

Arkansas Hospice cares for nearly 600 patients daily from 10 locations and three inpatient facilities in 43 counties in its home state, including a number of rural and remote areas of the state. The organization was founded in 1992. The provider launched a subsidiary, Arkansas Palliative Care, in 2015 to engage seriously ill patients further upstream in their illness trajectory.

“The addition of FCSC to our family of companies is a wonderful opportunity for us to meet the needs of seniors where they are, improve their quality of life and provide an added layer of support for their caregivers.” Arkansas Hospice President and CEO Judy Wooten said. “The non-medical, in-home care afforded by FCSC expands the services of Arkansas Hospice, which added a palliative care division in 2015.”

The First Choice purchases marks the organization’s first entry into the nonmedical personal care space, a growing sector among senior services industries. Estimated industry-wide growth in the personal care space is expected to reach between 9% and 14% by 2024, or about $100 billion, Hospice News’ sister site Home Health Care News reported.

Nonmedical home care is undergoing a growth spurt in terms of acquisition activity as well, beginning in late 2020 and pressing into last year, according to data from the M&A advisory firm Mertz Taggart. At least 19 home care acquisitions occurred in Q4 2021, the firm reported, nearly keeping pace with the burgeoning hospice M&A market. 

Demographic tailwinds will likely continue to fuel both the hospice and nonmedical home care markets. About 17% of the state’s population of more than 3 million are age 60 and older, according to the U.S. Census Bureau. The Arkansas Department of Human Services (ADHS) expects the senior population to grow by 72% between 2000 and 2030.

In 2017, Arkansas ranked 10th among the states in the number of residents who died due to Alzheimer’s disease. The state has the highest number of deaths in the nation due to chronic lower respiratory disease and is third in kidney disease, heart disease and diabetes, ADHS found. More than 27% of adults in Arkansas age 50 and older are in poor or fair general health.

Post-acquisition, FCSC will operate as a subsidiary of Arkansas Hospice, offering services in patient residences, as well as senior housing, skilled nursing and assisted living facilities. FCSC co-founder Kayla Bogle will join Arkansas Hospice in a management role.

 “We’re excited to be a part of the Arkansas Hospice organization, their 30-year legacy, and their outstanding reputation for providing the highest quality of care,” Bogle said.

Hospice utilization in Arkansas was slightly higher than 50% in 2018, which was in line with the national average that year, according to the National Hospice & Palliative Care Organization.