Texas-based New Day Healthcare has inked an agreement to acquire New Mexico-based Heritage Home Healthcare LLC for an undisclosed sum. The deal widens the company’s patient reach and marks its entrance into a new state.

The acquisition has been several years in the making, according to New Day Founder and CEO G. Scott Herman. Organizational culture, community reputation and shared values were key considerations that built a solid partnership, Herman said in an announcement on Wednesday.

The transaction is anticipated to close in July, subject to customary closing conditions and regulatory approvals.

“We are pleased to partner with the Heritage Home Healthcare team,” Herman said in a statement shared with Hospice News. “We have been familiar with the company since 2016 and their reputation of high-quality care delivery and the constant pursuit of excellence, coupled with their ‘patient first’ culture, aligns perfectly with New Day Healthcare.”

Heritage Home Healthcare has provided care in New Mexico since 1993. The former nonprofit offers services across four counties in the state. The hospice, home care and skilled care service provider has more than 900 employees and has a daily census of roughly 1,100 patients. Services will continue to be provided under the organization’s current brand.

The transaction is the fifteenth deal for New Day to date, with New Mexico the fifth state in its geographic footprint.

Demographic trends are driving up hospice demand in the state. Seniors 65 and older represent 19.8% of the overall population in New Mexico, reported the U.S. Census Bureau. The volume of individuals in this age cohort is growing at faster rates compared to national averages, according to recent research from the New Mexico Department of Workforce Solutions.

Hospice utilization among Medicare decedents reached 45.08% in 2022, which was near the 49.1% average rate that year, according to a report from the National Alliance for Care at Home.

Founded in 2020, New Day’s roughly 10,000 employees provide hospice, home health, pediatric and personal care to roughly 180,000 patients annually. The company offers services in Texas, Illinois, Kansas, Missouri and now New Mexico. 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.

The company employs a three-pronged strategy that integrates tuck-in deals, market expansion and transformational approaches, Herman previously told Hospice News.

New Day pursues smaller tuck-in deals within its existing markets and co-locates its multifaceted business lines, including home health, hospice, personal care, private-pay nursing and therapy services, he stated.

Through its continuum-based approach to organic growth, along with its disciplined acquisition model, New Day anticipates continued strong expansion across multiple services lines, according to Matthew Griffith, the company’s chief development and strategy officer.

“New Day’s platform has been built to scale and allows for successful expansion into additional geographies,” Griffith said in the statement. “New Day will implement our continuum-based model, along with our proprietary CareLytics software, to drive organic growth and improved patient care workflows.”