New Century Hospice, a Texas-based hospice care provider, has closed $20 million in Series A financing to continue its expansion of stand-alone hospice care centers in Texas and neighboring states.
New Century owns nine hospice companies in Texas under the operating names of Century Hospice, Cosmos Hospice, Heritage Care Hospice, Paragon Hospice and Angel Heart Hospice.
Foster City, Calif.-based Scale Venture Partners and Nashville, Tenn.-based Petra Capital Partners led the financing. Upon completion of the deal, Mark Brooks and Lou Bock, both managing directors with ScaleVP, and David Fitzgerald, general partner with Petra Capital, joined New Century's board of directors.
“I started this company with the belief that providing patients with high-quality, end-of-life care is both good for patients and their families and is cost-effective as well,” said David Gasmire, founder and CEO of Century Hospice. “Lou, Mark and David are experienced investors in companies that deliver medical care in a clinical situation. They understand how to scale this type of business successfully, while keeping care for patients the top priority. I look forward to working with them as we expand the company.”
Hospice patients typically have a life expectancy of six months or less, and treatment is focused on comfort care for the patient and the family. This care is called “interdisciplinary” because it involves many healthcare professionals who are focused on the medical, spiritual, psycho-social and personal needs of patients and their families.
The Medicare Hospice Benefit, enacted in 1983, also provides for medication, equipment and supplies related to the patient’s diagnosis.
“ScaleVP has a history of successful investments in healthcare service companies like New Century Hospice, where demographic trends and superior outcomes at lower costs drive growth,” said Brooks. “It is an honor to be working with David and the team at Century Hospice to expand their care centers.”
"Hospice care will play an increasingly important role as more physicians begin to view hospice as the most appropriate option for patients with a terminal diagnosis,” Fitzgerald said. “In our view, hospice care allows patients and their families to address the emotional and physical challenges of end of life care with the support of an interdisciplinary team in the most appropriate care setting.”