San Francisco-based Home Care Assistance has entered into an agreement to acquire the California home care operations of Silverado, a large senior living, hospice and in-home care provider that specializes in dementia services.
The agreement is effective July 8, Silverado confirmed to Home Health Care News.
“Silverado has been looking for a long-term partner for our At-Home business as we focus the organization more fully around memory care, hospice and palliative care,” Loren Shook, CEO of Silverado, told HHCN in a statement. “I am pleased to report that we have found the ideal partner in Home Care Assistance.”
The companies declined to comment on the financial terms of the agreement.
Irvine, California-based Silverado operates memory care and assisted living facilities while also providing home care, palliative care and hospice services. It has locations in eight states total, though its home care business is mostly based in California, with a further footprint in Houston, Texas.
Silverado’s Houston home care operations will continue to operate as usual, a company spokesperson told HHCN.
Meanwhile, Home Care Assistance is an international company that provides hourly home care, 24-hour care and hospital-to-home services, in addition to Alzheimer’s and dementia care. Home Care Assistance has more than 200 locations and 10,000 employees across the United States, Canada and Australia.
“Home Care Assistance will continue Silverado’s legacy of world-class care through the established strength of our operations and deep commitment to elevating quality of life and client experience,” Lily Sarafan, CEO of Home Care Assistance, told HHCN in a statement.
As a part of the deal, Home Care Assistance will offer employment to all of Silverado’s At-Home associates working in California.
Once the deal with Silverado is finalized, Home Care Assistance will become the senior living provider’s preferred home care partner in the Golden State. Many of Silverado’s residents already receive services from the company’s in-home care line.
Overall, Silverado does about $350 million in annual revenue, CFO Christian Sweetser previously told HHCN sister site Senior Housing News. Its At-Home line is a roughly $15 million business, with about 90% of that coming from its communities.
Historically, Silverado has reaped significant synergies from its home care arm, he said.
“Our At-Home caregivers will bring folks into the communities to participate in the programming,” Sweetser said. “I think that’s something we do very, very well. We’ve done it for 12 years now, and it’s been very successful. For At-Home clients who are appropriate candidates for the communities, our conversion from At-Home to the community is about 75%.”
Broadly, Silverado’s planned move to sell of its home care assets signals a greater shift toward memory care, hospice and palliative care. Silverado’s home care business is substantially smaller than its hospice business, according to the spokesperson.
Earlier this month, real estate investment trust Welltower (NYSE: WELL) tapped Frontier Management to take over operations of 20 memory care properties currently operated by Silverado.
Silverado was the fifth-largest U.S. memory care operator last year, according to rankings compiled by industry association Argentum.