Hospice News, M&A Jet Health Acquires Carrington Hospice
Home health provider Jet Health Inc., based in Irvine, Calif., grew its hospice footprint with the recent acquisition of Arlington, Texas-based Carrington Hospice Care, Inc., for an undisclosed amount. Citing improved continuity of care and patient satisfaction as driving forces, the acquisition will expand community-based service lines, a draw for many entering the hospice marketspace.
“The completion of this transaction in the Dallas/Fort Worth marketplace demonstrates Jet Health’s ability to execute on our strategy of becoming a multiple service line provider of home-based care across the four key home health markets we currently serve,” said Jet Health CEO Stacie Bratcher. “By providing our home health patients a choice to remain in our care as they transition to hospice, we will improve the continuity of care and overall patient satisfaction of those we serve.”
In addition to hospice and home health, Jet Health provides skilled nursing care, physical, speech and occupational therapy, medical social services, personal care and companion services with locations in Colorado, Idaho, New Mexico and Texas. The acquisition of Carrington Hospice Care expands Jet Health’s reach further in the Texas hospice space. The state ranked 15th nationally in hospice utilization among Medicare decedents at 52.8% in 2018, according to data from the National Hospice and Palliative Care Organization. Utah held the highest rate at 60.5%.
Location and scale piqued Jet Health’s interest inCarrington Hospice Care, Bratcher told Hospice News. Founded in 2018, Carrington provides end-of-life care to the greater Dallas and Forth Worth communities. Seniors 65 years and older make up approximately 10% of the Dallas population, according to the U.S. Census Bureau, with a similar percentage in in Forth Worth, Texas.
“Joining Jet Health allows the Company to address this move and helps expand the depth of their offerings,” the Carrington Hospice Care company indicated in a statement. “Jet Health has established a solid reputation for quality patient care and service throughout Texas, and aligning with the Company will advance our market leadership position.”
According to a statement from Carrington Hospice Care, the Dallas/Forth Worth area’s health care landscape is experiencing a shift toward providers with the ability to offer home-based care service lines.
The acquisition is in line with an industry-wide trend in the hospice marketplace toward consolidation. Hospice saw the largest M&A deals in the post-acute health care sector during 2019 and thus far in 2020, even with record-high valuations in the space. Despite COVID-19 headwinds, hospice M&A activity in 2020 remains strong and is expected to burgeon further in 2021.
Private equity investment firms SV Health Investors and Health Enterprise Partners, which partially owns Jet Health financed the deal. Stradling Yocca Carlson and Rauth acted as legal counsel to Jet Health on the transaction, and American Healthcare Capital served as acquisition advisors to Carrington Hospice Care.
SV Health Investors and Health Enterprise Partners also financed Jet Health’s entry into the hospice market last May with the acquisition of Boise, Idaho-based First Choice Home Health and Hospice for an undisclosed amount. First Choice began offering end-of-life care after merging with area hospice and palliative care provider A Better Way Home in 2012.
A “continuum of care offering” drove the decision to move deeper into the hospice space, Brachter shared with Hospice News. Widening hospice services has been part of Jet Health’s trajectory since its inception in 2016, according to founder and previous CEO, Jim Glynn.
Jet Health expects to continue growing operations further with acquisitions and de novo development in its target markets.
“This acquisition affords Jet Health the opportunity to better service both our patients and referral sources in the Texas marketplace and to continue to grow Jet Health’s hospice offering throughout our geographic footprint,” Brachter added in a statement.
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