Prairie Capital VI, LP partnered with CEO Clark Blair to recapitalize Legacy Hospice Holdings, Inc. (“Legacy” or the “Company”). Headquartered in Livingston, AL, Legacy is a leading provider of hospice services in rural, lower-cost settings with 70% of the Company’s care administered in the patient’s home. Legacy currently services more than 600 patients daily from 21 office locations throughout seven contiguous states in the Southeast.
Legacy is a premier provider in the rural hospice market. Over the last 17 years, the Company has built a platform of clinical excellence with strict adherence to compliance and dedication to delivering exceptional care to its patients and their families, evidenced by industry-leading quality and recommendation ratings. Legacy is strategically located in rural “hubs” to create regional density, maximize coverage area and service patients who may not otherwise have convenient access to healthcare facilities. The delivery of consistent, high-quality care across its footprint promotes strong brand awareness and builds clinical credibility within local communities, making Legacy a preferred provider in its markets.
Hospice care is a large and growing market in the U.S. It is expected to benefit from favorable underlying demand drivers and recession resistant characteristics, including accelerated growth in the aging population, higher acceptance and utilization of hospice among patients and their families, and continued support from regulatory bodies that view hospice as a high-quality, lower cost alternative to end-of-life care. As a result, hospice and palliative care services are expected to grow at 4.4% annually to $44.8 billion in 2022. Hospice utilization is growing faster in rural markets than urban environments and is particularly high in the Southeast. Despite significant consolidation, the industry remains fragmented with approximately 4,500 hospices and only 1% of providers having an average daily census of at least 500 patients. Over the next several years, increased regulatory requirements for quality metrics and transparent reporting is expected to create challenges for smaller hospices, providing opportunities for further consolidation.
Legacy’s current geographic footprint and track record of excellent clinical care position the Company to capitalize on these favorable market dynamics as well as growth prospects unique to its rural markets. In addition to executing on company-building investments in human capital, technology, and sales & marketing, Prairie will work with management to aggressively explore de novo site expansion and add-on acquisitions.
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