Texas-based New Day Healthcare has inked an agreement to acquire New Mexico-based Heritage Home Healthcare LLC for a private amount. The deal will widen the company's patient reach and mark an entrance into a new state.
According to G. Scott Herman, founder and CEO of New Day, the acquisition has been happening for several years. Organizational culture, community reputation and shared values were key considerations for building solid partnerships in Wednesday's announcement.
The transaction is expected to close in July subject to customary closure conditions and regulatory approval.
“We are delighted 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 its reputation for providing high quality care and a constant pursuit of excellence, coupled with the “patient first” culture, is perfectly in line with the new day health care. ”
Heritage Home Healthcare has been providing care in New Mexico since 1993. The former nonprofit provides services in four counties in the state. Hospice, home care and skilled care service providers have over 900 employees and have a daily census of around 1,100 patients. Services will continue to be offered under the organization's current brand.
The deal is the 15th contract of the new day so far, with New Mexico in its geographical footprint.
Demographic trends are increasing demand for state hospice. Elderly people ages 65 and over represent 19.8% of New Mexico's total population, the U.S. Census Bureau reported. A recent study by the New Mexico Department of Labor Force Solutions found that the volume of individuals in this age cohort is growing faster than the national average.
Hospice utilization among Medicare descendants reached 45.08% in 2022, according to a National Alliance report.
Founded in 2020, New Day's approximately 10,000 employees provide hospice, home health, pediatrics and personal care to approximately 180,000 patients each year. The company serves Texas, Illinois, Kansas, Missouri and now New Mexico. Brands under the New Day umbrella include Phoenix Home Care & Hospice, New Age Hospice, Compassion Hospice, Texas Home Care Providers, Pathfinder Home Health, Envision Health Partners, and AssistCare.
The company is adopting three strategies that integrate tack-in trading, market expansion and a transformational approach, Herman previously told Hospice News.
He said New Day is pursuing smaller tack-in transactions within existing markets and is collaborating on a multifaceted business line, including home hygiene, hospice, personal care, private pay nursing and therapy services.
According to Matthew Griffith, our Chief Development and Strategy Officer, through its continuous approach, with its disciplined acquisition model, with its disciplined acquisition model, with its disciplined acquisition model, with its disciplined acquisition model, with its disciplined acquisition model, with its disciplined acquisition model, with its disciplined acquisition model, through its trained acquisition model.
“New Day's platform is built to scale and allows for successful expansion into additional regions,” Griffith said in a statement. “New Day implements a continuous, based model along with its proprietary Carelytics software to improve organic growth and patient care workflows.”
