Pharos Capital Group, a middle-market private equity firm with dual headquarters in Dallas and Nashville, boosted its healthcare portfolio with the acquisition of THEMA Health Services, a Medicare-certified provider of hospice, skilled home health and palliative care services across the state of Arizona. Financial details were not disclosed.
THEMA serves over 2,000 patients annually, providing care at residences and in nursing homes, assisted living and skilled nursing facilities. The company also supplies skilled home health and palliative care services to non-hospice patients, including those recovering from surgery, dealing with an illness or living with a chronic health condition.
“As Medicare hospice daily per diem payments cost about four times less than daily skilled nursing facility services and 40 times less than acute-care inpatient services, THEMA’s hospice offering delivers significant institutional cost-saving benefits, while also maximizing quality of life with compassionate, accessible care,” said Pharos Partner Jim Phillips.
Founded in 1998, Pharos is focused exclusively on growing healthcare companies that aim to lower costs of care, improve outcomes for patients and expand access to care in underserved markets. The firm has invested in 55 companies and has over $1.3 billion of private equity assets under management as of June 30.
So far this year, Pharos has acquired cataract surgical service provider Vantage Outsourcing in addition to acquiring a total of five hospice and home care providers — three in Texas, two in Nebraska — by way of its post-acute care provider platform, Charter Health Care Group. The values of all transactions were undisclosed, but Pharos said 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.
The THEMA acquisition is the second investment from Pharos’ latest flagship fund, Pharos Capital Partners IV, which is investing alongside its parallel fund, Pharos Capital Partners IV-A, a licensed Rural Business Investment Company.
THEMA Founder Theresa Lungwitz will retain a minority stake in the company and serve as executive chairperson.
“I am pleased to bring in such an experienced, healthcare-focused partner to help THEMA reach new goals in the next phase of its growth, while being a thoughtful custodian of our history of quality care and compassion for the communities we serve,” she said. “Pharos’ proven track record and significant resources will be invaluable as THEMA seeks to serve more communities as well as expand its hospice and post-acute care service offerings in rural markets.”