Traditions Health LLC, a portfolio company of the family-owned investment firm Dorilton Capital Advisors, has acquired Serenity Health Management for an undisclosed amount, giving the company a larger foothold in Kansas. While Traditions offers hospice in the Kansas City region, this transaction marks the entry of its home health business into the state.
Serenity Health Management is a hospice and home health provider based in Wichita, Kansas. The home-grown and rooted company is well-established in its market, giving it an edge among even its largest competitors in the state. This has also aided the provider with staff retention, which has become a key consideration in almost every hospice M&A deal since the onset of the pandemic.
Headquartered in College Station, Texas, Traditions Health, LLC is a holding company that focuses on healthcare industry-related businesses including home health, hospice, consulting services and online policy manuals. The company provides care to over 7,500 patients across 17 states.
M&A firm Agenda Health advised Serenity on the deal.
Favorable demographics make Kansas an appealing market for home health and hospice acquisitions. The proportion of the Kansas population older than 60 is increasing, and according to estimates from the U.S. Census Bureau, nearly 25% of Kansas residents will exceed that age by 2030, a 32% increase from 2012. Kansas also ranked 12th in the nation in 2018 for hospice utilization among Medicare decedents at 53.3%, according to the National Hospice & Palliative Care Organization, which is slightly higher than the 2018 national average of 50.3%.
Traditions has become a frequent buyer in the home health and hospice space. Just in the past three years, the provider has completed more than a dozen transactions within the sector. It kicked off 2021 by acquiring four companies (Grace Hospice & Palliative Care, Heritage Hospice, Traditions Home Care and Secure Home Care) in January. Then, in October, Traditions acquired Family Comfort Hospice in Scottsdale, Arizona, the company’s fifth location in that state. Traditions’ entered the Kansas hospice market in November 2021 with the purchase of the Kansas City locations of Lumicare Hospice for an undisclosed sum. Most recently, the Texas-headquartered hospice provider completed a deal in Illinois in December, for Heritage Hospice. Tradition’s continued growth is representative of the rising influence of private equity in the hospice M&A space. Full details for all the mentioned deals can be found on the LevinPro HC platform here.
