Silverado has entered into a definitive agreement to sell three hospice locations to Mission Healthcare for an undisclosed amount.
The three locations – in Ventura and San Mateo, California, and Salt Lake City, Utah – are among the smallest locations in Silverado’s hospice business and will benefit from being part of a larger organization in the area, Silverado SVP of Sales and Marketing Jeff Frum told Senior Housing News via email.
Silverado, based in Irvine, Calif., Pioneered self-contained memory maintenance communities and has also served in the hospice field since 2004.
“We have a fundamental commitment to the hospice,” said Frum.
In recent years, Silverado has expanded its involvement in the hospice. In 2018, the company set itself the goal of opening two hospices per year for five years. At that time the company operated 11 hospice locations.
âWe care for people in our communities until the end of their lives,â Loren Shook, CEO of Silverado, told SHN in 2108. â86 percent of people in our communities die while receiving hospice care. It is important for your quality of life to be in the hospice, to avoid unnecessary trips to the emergency room and we offer the advantage of guided medical services and funeral services. “
Despite the agreement with Mission Healthcare from San Diego, Silverado remains committed to expanding the hospice.
“Silverado Hospice is strong and growing across Southern California and Texas,” Frum told SHN. “We recently opened a brand new hospice facility in Temecula, California to continue expanding from northern San Diego County to Riverside County.”
The integration of hospice and privately paid senior housing offers a potential business opportunity. Hospice use among Medicare residents rose 35% between 2011 and 2019, but demand for assisted living rose over 100%, according to a Senior Housing News report published in October 2019.
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In addition, a survey of hospice providers conducted by SHN’s sister site Hospice News found that 36% of respondents identified assisted living as the top growth area outside of single-family homes.
But the hospice M&A market is also hot right now, with robust activity and impressive valuations. Brookdale Senior Living (NYSE: BKD) sold an 80 percent stake in its home health and hospice businesses earlier this year for $ 400 million, in part to receive a cash infusion to offset pandemic-related expenses.
A “key motivator” for hospice buyers is to build density in the regions where they already operate, executives at consulting firm Provident Healthcare Partners told Hospice News. For Mission Healthcare, the Silverado deal expands both the company’s existing presence in Northern California and an initial entry into Utah.