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 sites in Silverado’s hospice business and will benefit from being part of a larger organization in the region, Silverado SVP of Sales and Marketing Jeff Frum told Senior Housing News via email.
Irvine, California-based Silverado is a pioneer of standalone memory care communities and has also operated in the hospice space since 2004.
“We have a foundational commitment to hospice,” Frum said.
In recent years, Silverado has been expanding its involvement in hospice. In 2018, the company set a goal of opening two hospices a year for five years. At that time, the company operated 11 hospice sites.
“We take care of people in our memory care communities through the end of life,” Silverado CEO Loren Shook told SHN in 2108. “Eighty-six percent of people in our communities pass away on hospice care. It is important for their quality of life to be on hospice, to avoid needless trips to the emergency room, and we provide the advantage of guided medicine services and grieving services.”
Despite the deal with San Diego-based Mission Healthcare, Silverado remains committed to hospice expansion.
“Silverado Hospice is strong and growing throughout Southern California and Texas,” Frum told SHN. “We recently opened a brand new hospice site in Temecula, California, to expand further from northern San Diego County into Riverside County.”
There is a potential business opportunity to seize in integrating hospice and private-pay senior living. Hospice utilization among Medicare enrollees grew by 35% between 2011 and 2019, but the demand in assisted living skyrocketed by over 100%, according to a Senior Housing News report released in Oct. 2019.
Furthermore, a survey of hospice providers conducted by SHN’s sister site, Hospice News, found that 36% of respondents identified assisted living as the top area for growth outside of single-family homes.
But the hospice M&A market is also hot at the moment, with robust activity and impressive valuations. Brookdale Senior Living (NYSE: BKD) earlier this year sold an 80% stake in its home health and hospice business for $400 million, in part to gain a cash infusion to offset pandemic-related expenses.
A “key motivator” for hospice buyers is to create density in regions where they already operate, leaders with advisory firm Provident Healthcare Partners told Hospice News. For Mission Healthcare, the Silverado deal both expands the company’s existing footprint in Northern California and marks an initial entry into Utah.
The post Silverado Sells 3 Hospice Locations But Still Committed to the Line of Business appeared first on Senior Housing News.