Texas-based New Day Healthcare LLC has announced its acquisition of Good Samaritan Society’s hospice operations in its home state. The financial terms of the deal were undisclosed. 

The transaction includes Good Samaritan’s hospice assets in El Paso, Texas, expanding New Day’s existing presence in that market. The deal marks an important strategic move as New Day Healthcare ramps up M&A activity in the near future, according to CEO and Founder G. Scott Herman.

“Acquiring these strong-performing hospice operations from Good Samaritan allows us to further execute our plans to provide multiple service lines in the El Paso market,” Herman said in a statement shared with Hospice News. “We have been public with our plans to be very strategic in obtaining assets that dovetail nicely with our overall growth and acquisition strategy. We also only acquire companies who are already leading class in terms of patient care.”

Good Samaritan Society’s hospice program includes pain and symptom management, emotional and spiritual care, palliative care and other home-based services. The faith-based organization also provides home health, home care and telehealth services. Good Samaritan’s geographic footprint spans 15 states, including Texas.

The new acquisition comes on the heels of New Day’s recent purchase of Intrepid USA’s hospice operations in Missouri and Texas for an undisclosed amount.

Growing aging populations are fueling demand for hospice in Texas and nationwide. Seniors 65 and older represent 13.8% of the state’s overall population, according to the U.S. Census Bureau.

Hospice utilization among Medicare decedents reached 52.23% in Texas during 2022, reported the National Alliance for Care at Home. Hospice utilization rates hovered at 49.1% nationwide that year, according to the Alliance report.

New Day launched in 2020, led by a group of former hospice and home health professionals. The organization, through several home care brands, offers hospice, home health and personal care, along with pediatric services and clinical decision support.

The company recently secured a $125 million senior credit facility with First Citizens Bank, which will support its acquisition pipeline in home health, hospice and personal care. Part of the funds will be utilized to complete the acquisition of four facilities, as well as several other transactions under consideration, Herman previously told Hospice News in a statement.

To date, New Day has integrated 12 acquisitions into its pipeline, the company reported. The company’s estimated 7,800 employees provide care to nearly 120,000 patients annually across 30 locations in Illinois, Kansas, Missouri and Texas. New Day has an average daily census of 12,000 patients.

Brands under the New Day’s umbrella include Phoenix Home Care & Hospice, New Age Hospice, Compassion Hospice, Home Care Providers of Texas, Pathfinder Home Health, Envision Health Partners and AssistCare, among others.

New Day is well-poised for growth across its health service continuum, according to Matt Griffith, chief development and strategy officer at New Day.The company’s two-pronged strategy hinges on organic growth and acquisitions, with more transactions expected to come to fruition in coming months, Griffith indicated.

“This acquisition further emphasizes New Day’s disciplined and strategic approach to M&A growth as we expand our service offerings in key markets,” Griffith said in the announcement. “Our pipeline for future deals is robust, and we are excited heading into 2025.”