Dallas-based New Century Hospice, which operates nine hospice centers statewide, received a $20 million infusion from two venture capital firms in California and Tennessee.
"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," said David Fitzgerald, managing partner of Petra Capital Partners in Nashville, according to the Nashville Post.
The other venture capital firm participating in the transaction is Scale Venture Partners in Foster City, Calif.
The capital will be used to expand New Century outside of Texas and into adjoining southern states--particularly Louisiana, Alabama and Georgia, New Century CEO David Gasmire told FierceHealthFinance. The new centers should start appearing in early 2012, he noted.
Gasmire said the South has been strong supporters of hospice care, particularly given the involvement of extended families involving care decisions and the fact it is affordable, due in part to the use of non-unionized workers.
"There have also been a lot of studies showing that hospice care keeps patients out of the hospital," Gasmire said.
Although Gasmire noted most of New Century's care is provided in patients' homes, T. Boone Pickens donated $18.4 million to the company in September to build a 36-bed inpatient hospice in Dallas.