Forms New Platform Focused on Hospice, Home Health, and Transitional Care Services
Pharos Capital Group, LLC, a private equity firm based in Dallas and Nashville, announced it has made a majority investment in Charter Health Care Group, a leading provider of post-acute care services based in Southern California. Founded in 2006 by industry veterans Fred Frank and Sabina Del Rosario, Charter offers a variety of post-acute care programs including hospice, home health, transitional care, and palliative care services. Terms of the transaction were not disclosed.
The transaction forms the basis for Pharos’s post-acute care platform, which will focus on building and acquiring high-quality hospice and home health companies that manage healthcare needs across the post-acute care continuum while also working to improve the patient experience and lower the costs of care for those patients.
“We are excited to establish a platform in the rapidly growing post-acute care segment of the healthcare industry,” said Bob Crants, Founding Partner of Pharos. “Charter has built a strong model that will lead the industry toward better solutions for patients, families, and caregivers as end-of-life and home health services are increasingly important to patient care.”
Steve J. Larkin, a seasoned industry executive and member of Pharos’s entrepreneur-in-residence program, will serve as Chief Executive Officer of Charter. Mr. Larkin has more than 15 years of post-acute care experience and most recently served as Division President for Hospice Compassus, a nationwide network of community-based hospice, home health, and palliative care services. Mr. Frank, former Chief Executive Officer, will become President of the company, and Ms. Del Rosario will remain as Chief Operating Officer.
Mr. Larkin said, “We are delighted that Charter will form the basis of our new healthcare platform. The company has built an enviable record of mitigating hospital readmissions, reducing acute care length of stay, and bridging care delivery gaps. We aim to replicate those achievements in new markets across the country as the company expands through additional acquisitions and organic growth. Most families will need transitional or home care services for themselves or a family member and our goal is to offer access to high-quality care that ensures comfort while lowering overall healthcare costs.”
Mr. Frank added, “Our goal from inception has been to become the preferred post-acute care provider to patients leaving hospitals and to transition them to the most appropriate level of care. The operational expertise and financial resources Pharos brings will allow us to continue to refine our model while expanding our collaborative efforts with local communities and healthcare providers.”
This marks the tenth platform portfolio investment from Pharos III and III-A, healthcare-focused private equity sister funds. Recent Pharos investments include Behavior Care Specialists, a provider of autism spectrum disorder services and an addition to Pharos’s Family Treatment Network platform, and Verdi Oncology, an oncology practice and clinical research management company.
Date: November 2, 2018
Source: Cision
