Hometown Hospice & Homecare | Case Study

Hometown Hospice & Homecare

  • Status: Exited
  • HQ Location: Midwest
  • Industry: Healthcare Services
  • Fund: Private Credit Fund I
  • Deal Team: Matt Harnett and Paul Oris, CPA
  • Investment Date: 03/10/2017

Company Background

  • Founded in 2013 and headquartered in Brookfield, WI (west of Milwaukee), Hometown is a provider of hospice and homecare services to skilled nursing facilities, assisted living facilities, and residents in the greater Milwaukee area.
  • Hometown’s healthcare services include: skilled nursing care, pain management and control, physician services, homemaker services, patient counseling, and bereavement counseling.
  • In addition to their healthcare services, Hometown offers unique services under their Life Enhancement Program, including; massage therapy, music therapy, aromatherapy, pet therapy and friends/family videoconferencing services.
  • In March 2017, Tecum supported JPB Capital Partners (“JPB” or the “Sponsor”) to acquire Hometown Hospice & Homecare, Inc. (“Hometown” or the “Company”).

Investment Thesis

  • Industry: With the implementation of the Affordable Care Act, the aging of the population (particularly the “Baby Boomers”), and the shift in reimbursement methodologies towards value-based outcomes provided in post acute settings, both the home health and hospice industries enjoy a very favorable outlook in both the near and intermediate terms as an attractive investment and growth opportunity.
  • Opportunity: Greenfield new locations or grow through tuck-in acquisitions.
  • Strategy: Partner with management to support the continued growth of the business by increasing Hometown’s average daily patient census (“ADC”) in their current geography, in addition to expanding the Company’s hospice and homecare service area to contiguous geographies by opening new locations and pursuing acquisitions.

Results

  • Following the completion of the initial acquisition in March 2017, the Company has opened a second location in Fond du Lac, WI (north of Milwaukee) and a third location in Mount Pleasant, WI (south of Milwaukee) in order to better service their growing base of patients Hometown exceeded expectations on all fronts, growing ADC, employees, revenue, and EBITDA substantially.
  • In August 2019, Hometown was acquired by St. Croix Hospice, generating strong returns for Tecum.
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