Pharos Capital Group-backed Charter Health Care Group acquired two hospice service providers, Vitality Home Healthcare and Heartwood Home Health & Hospice. The acquisitions are Charter’s third and fourth add-ons in 2020, after Pharos acquired the platform in 2018.
Pharos Capital Group, LLC (“Pharos”), a private equity firm based in Dallas and Nashville, announced that its post-acute care provider platform, Charter Health Care Group (“Charter”), has acquired two hospice service providers, Vitality Home Healthcare (dba Phoenix Home Care & Hospice) in Denver, CO and Heartwood Home Health & Hospice, in the Salt Lake City, UT area. Financial terms of the transaction were not disclosed.
These acquisitions are Charter’s third and fourth add-ons in 2020, following its acquisitions of Las Vegas-based St. Luke’s Home Hospice LLC and Phoenix-based Arizona Select Hospice LLC in March. Pharos first invested in Charter in October 2018.
Charter, based in Southern California, is a provider of post-acute care services that offers a variety of programs including hospice, home health, private duty nursing, complex care management and palliative care services. Phoenix and Heartwood also offer variations of those services to pediatric and adult patients with life-limiting illnesses. Both management teams will remain with their organizations.
“We believe end-of-life and home health services have never been more important as Americans face continuing pressure from the COVID-19 pandemic. Charter is committed to continuing its practice of providing professional, compassionate care while taking precautions to keep its patients and providers as safe as possible,” said Bob Crants, Founding Partner and Chief Investment Officer of Pharos. “In our view, the Company’s track record in Southern California and across the Southwest makes it well positioned to bring its proven model to additional core metropolitan markets, where it plans to grow organically and through partnerships with leading companies.”
Steve J. Larkin, Charter’s CEO, said, “We are pleased to add Phoenix and Heartwood to Charter’s portfolio. We look to partner with teams that share our mission of leading the home care and hospice industry toward the best solutions for patients, families, and caregivers. As always, our vision remains focused on improving patient outcomes and quality of care while reducing the total cost of care provided to chronic, complex, and end-of-life patients.”
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About Charter Health Care Group
Charter Health Care Group (“Charter”), founded in 2006, is an integrated post-acute care provider offering hospice, home health, and transitional care services. The company serves over 3,600 patients and has multiple locations across Arizona, California, Colorado, Nevada, and Utah. Charter is a trusted partner for hospital systems, managed care organizations, assisted living facilities, skilled nursing facilities, medical groups, and surrounding communities. For more information, visit http://www.charterhcg.com/.
About Pharos Capital Group
Based in Dallas and Nashville, Pharos Capital Group (www.pharosfunds.com) is a physician-founded private equity firm focused on growing healthcare companies which lower the total cost of care, improve patient outcomes and expand access to care. Pharos invests to reduce healthcare inequalities in underserved markets across the United States, especially within urban and rural communities. Since inception, Pharos has invested in 54 companies and currently has over $1.1 billion of assets under management. Pharos typically invests $25-$50 million in rapidly growing middle market companies seeking later stage funding for internal growth, acquisitions, leveraged buyouts, management buyouts, or recapitalizations.