The Care Team (TCT) recently acquired Indiana-based 1st Care Home Health Services, marking the company’s entry into that state and another step along its growth trajectory. Financial terms of the deal were undisclosed.
Winston & Strawn LLP acted as legal counsel to The Care Team, which provides home health and hospice in Michigan, Massachusetts, Pennsylvania, Texas and now Indiana.
This marks the home health and hospice provider’s fourth acquisition since it became a portfolio company of private equity firm Revelstoke Capital Partners in 2019.
Symmetries workplace culture and care delivery between the two companies were among the key draws in the deal, according to The Care Team CEO Dan Shoemaker.
“The Care Team and 1st Care share similar cultures and a strong commitment to quality patient care,” Shoemaker said in an announcement. “‘We see a tremendous growth opportunity by expanding into Indiana and are excited to partner with organizations focused on clinical quality and patient experience.”
The Care Team offers home-based care that includes hospice, nursing and occupational, physical and speech therapy services, as well as medical social workers.
Established in 2016, 1st Care provides home health and hospice in the Indianapolis area and surrounding counties across Central Indiana.
Similar to national trends, demographics are accelerating demand for hospice in the Hoosier State. Indiana University’s Business Research Center projected that seniors will represent 20.9% of the state’s overall population by 2050. This is up from 16.4% currently, according to the U.S. Census Bureau.
The hospice utilization rate among Medicare decedents in Indiana reached 51.9% during 2018, slightly above the national averages that year, the National Hospice and Palliative Care Organization reported.
“1st Care has made great strides over the years, and we are thrilled to be working with The Care Team to support our goal of accelerating growth while maintaining a high level of service to our communities and employees,” said Hari Nagireddy, 1st Care’s CEO and founder.
Some of 1st Care leadership will continue in management roles at The Care Team going forward. The acquisition is the latest move for TCT as the company continues to grow its footprint.
Earlier this year in January The Care Team picked up Texas-based Crossroads Hospice for an undisclosed sum, beefing up its portfolio by establishing a presence in the Houston area.