H2C Advises PACE of the Southern Piedmont on Sale to Kintegra Health and Lutheran Services Carolinas

 

August 11, 2020 — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive investment banker and financial advisor to PACE of the Southern Piedmont in its sale to Kintegra Health and Lutheran Services Carolinas. PACE stands for Program of All-Inclusive Care for the Elderly.

 

The transaction, finalized on June 30, positions PACE of the Southern Piedmont—a not-for-profit joint venture among Cone Health, Advanced Home Care, Well-Spring Retirement Community, and Hospice & Palliative Care Charlotte Region—to strengthen its services for aging Baby Boomers in the Charlotte, N.C., region, the state’s largest market for PACE services.

 

Approximately one-half of the 4,000 PACE-eligible residents in North Carolina currently participate in PACE programs, including more than 400 PACE participants in the Charlotte region. Increasing demand for PACE services offers PACE of the Southern Piedmont the opportunity to expand from one high-performing PACE center to two or three PACE centers to meet residents’ future needs in the four counties it serves: Cabarrus, Mecklenburg, Stanly, and Union.

 

H2C conducted an expansive campaign to find the right partner to provide the capital and other resources required by PACE of the Southern Piedmont for accelerated long-term growth. In doing so, H2C emphasized the organization’s strong financial performance, highly protected market share—with an exclusive license to operate PACE services within certain North Carolina markets—and its attractive position for long-term growth.

 

H2C’s professionally managed marketing process and carefully developed transaction structure for PACE of the Southern Piedmont ultimately led to final approval of the organization’s partnership with Kintegra Health and Lutheran Services Carolinas by the Centers for Medicare & Medicaid Services (“CMS”), the North Carolina Department of Health, and the Attorney General for the State of North Carolina. Under the agreement, leadership, staffing, and operations will remain the same.

 

“This is a great outcome not just for our team at PACE of the Southern Piedmont, which was able to retain all current employees and leaders, but also the greater Charlotte region, which gains continuity in service and the resources needed for long-term growth,” said Skip Hislop, chair of PACE of the Southern Piedmont’s outgoing board. “We’re grateful to H2C for its expertise in healthcare mergers and acquisitions and its deep commitment to helping us find the right partner.”

 

“This transaction demonstrates the power of partnership in strengthening the value of PACE services in communities like the Charlotte, N.C., region,” said William B. Hanlon III, Principal, H2C. “We sincerely appreciate the trust that PACE of the Southern Piedmont put in H2C to find the right cultural fit and deliver the best possible outcome.” Email Bill