In another sign of private equity’s expansion into home care, Superior Health Holdings, a home health and hospice provider based in Louisiana, disclosed Tuesday that it formed a strategic partnership with Pennsylvania private equity group Renovus Capital Partners.

“We are excited to partner with the seasoned and accomplished team at Renovus as we look forward to bringing Superior’s high-quality and compassionate care to more patients and families across the region,” David Martin, Superior’s chief executive officer, said in a statement.

Superior, which was formed in 2021 and consists of several post-acute care providers, serves patients across nearly 30 Louisiana parishes. In addition to home health and hospice, the firm also delivers skilled nursing care, therapeutic services, occupational therapy and more. The investment by Renovus Capital will help the provider to expand its reach and plan new strategic initiatives, Pat Heath, vice president of Renovus Capital’s investment team, told McKnight’s Home Care Daily Pulse Tuesday in an interview.

“They have extraordinary clinical quality … and the management team [is] tremendous,” Heath said. “I think when you find a business that’s grown as quickly as they have, and is committed to the standard of care that they are collectively with a management team like that, it’s really easy to get excited about it.”

Heath noted that Superior Health Holdings marked Renovus Capital’s first investment in the home health space. The care-at-home market presents an “attractive opportunity” for investors, Heath said, as it is the setting where most older patients prefer to receive care.

“Post-acute care is the most efficient mode of delivery for care, and it’s also how patients want to receive care,” Heath said. “We’re big believers in the future of home health as something that is going to continue to grow as a result of the aging population and all the benefits associated with cost of care delivery and patient preference. I think all those things have kept us really bullish on the space.”

Mergers and acquisitions activity in home care has been relatively slow in recent years, but financial experts predict a boom to soon occur as private equity investors begin to activate unused capital.