The private equity fund Tenex Capital is reportedly seeking a buyer for Team Select Home Care, a home-based care services provider that serves the medically complex pediatric population as part of its business model.

Tenex has begun taking bids on Team Select in a process that started about a month ago, according to Axios. The financials of the process include “about $35 million of pro forma adjusted EBITDA, on about $250 million of revenue,” according to Axios’ sources.

The two aspects of Team Select’s business model that make it relatively unique are its above-mentioned commitment to pediatric patients and its involvement in the paid family caregiver model.

The latter has been growing in popularity, both due to regulatory shifts at the state level and through private interest. For example, there’s Arizona’s “Family Licensed Health Aide Program,” which allows parents, relatives and other family members to become paid caregivers. Aveanna Healthcare Holdings (Nasdaq: AVAH) is participating in that program by training and paying family caregivers.

In addition to Arizona, four other states participate in the Family CNA Program: Colorado, Indiana, New Hampshire and Pennsylvania.

Aveanna also happens to be one of the larger at-home, pediatric care providers in the country, though it changed its business to cater more to the senior population following its entrance onto the public market.

Elsewhere, two large private equity firms – DW Healthcare Partners and Linden Capital Partners – recently invested in the self-directed, at-home care enabler Public Partnerships (PPL). The special acquisition company (SPAC) DTRT Health Acquisition Corp. in late September also merged with Consumer Direct Holdings, a self-directed in-home personal care network.

While self-directed care isn’t exactly the same as the Family CNA program, the concepts are very similar. The thought process behind the models is that paying family caregivers helps out those individuals, while also keeping patients out of more expensive, institutional settings.

“The state wins by doing this because they can pay us anywhere between 30% to 50% less per hour for us to staff a CNA compared to an LPN or RN,” Team Select President and CEO Fred Johnson told Home Health Care News in late 2020. “Any state that implements this program is going to see a significant savings on every dollar and every hour worked.”

On its end, the Phoenix-based Team Select provides home-based care – including Medicare-certified home health – as well as senior living services across 11 states. Its Family CNA Program is the company’s fastest growing business line, according to Axios.

“In the pediatric space, it’s generally a much lower margin business, but it’s typically long-term in nature when you’re talking medically fragile children,” Johnson said. “A lot of these kids don’t really have a prognosis to get better. What we can do is keep them comfortable and give them great quality of life by delivering good care in the home so they’re not living out their days in and out of hospitals, skilled nursing facilities (SNFs) and other centers of care.”

Tenex invests in middle-market companies across industries. It originally backed Team Select in October of 2017.

Within health care specifically, it also has investments in the durable medical equipment company Compass Health Brands, Smile Design Dentistry and the life sciences company Black Diamond Networks. It recently realized its investments in the travel nurse staffing company Medical Solutions and the medical equipment company Ohio Medical Corporation.