Palladium Buys DME Express to Scale Hospice Equipment Services

SAN DIEGO, CA – May 12, 2026 – Private equity firm Palladium Equity Partners has acquired a majority stake in DME Express, a major national provider of durable medical equipment for the hospice industry. The deal, which closed on March 25, sees founding investor Accord Asset Partners divest its full interest, positioning DME Express for a new phase of accelerated growth backed by a firm with a deepening interest in the end-of-life care sector.

While financial terms were not disclosed, the acquisition marks a significant strategic move in the rapidly expanding healthcare services market. DME Express, which provides essential equipment such as hospital beds, respiratory devices, and mobility aids to hospice patients across the country, will continue to be led by its current CEO, Mark Borneleit, and his management team. The partnership aims to leverage Palladium's capital and experience to expand DME Express's geographic footprint and service capabilities.

Palladium Deepens Its Bet on Hospice Care

The acquisition represents the second platform investment from Palladium Equity Partners VI, LP, a fund reportedly targeting $1.5 billion, and it is Palladium's second major foray into the hospice industry. This signals a clear strategic focus on a sector benefiting from powerful demographic tailwinds, including an aging population and a growing preference for in-home and palliative care.

Palladium's investment strategy frequently targets founder-led companies in fragmented service industries, aiming to provide the capital and strategic guidance necessary for consolidation and scale. Their portfolio includes past investments like Jordan Health Services, a home-based healthcare provider, where they employed a similar playbook of supporting growth in a specialized healthcare niche. By partnering with the existing DME Express leadership, Palladium is sticking to its model of backing proven management teams to execute ambitious growth plans.

Mark Borneleit, Chief Executive Officer of DME Express, expressed optimism about the new partnership. "Their prior experience in the hospice industry and working with founders seeking to scale their businesses makes them a strong partner to achieve our next phase of growth," he stated. Borneleit added that the collaboration will focus on expanding the company's footprint, enhancing services, and pursuing strategic acquisitions to better serve hospice providers and their patients.

A New Chapter for a Founder-Built Enterprise

For DME Express, the deal marks the culmination of a successful growth story and the beginning of a new, more aggressive expansion era. The company was co-founded over a decade ago by Accord Asset Partners and Mark Borneleit, growing from a founder's vision into a national leader.

Today, DME Express serves a daily average of 20,000 patients across 9 states through a network of more than 70 warehouse locations. The company built its reputation on a specialized model focused exclusively on hospice providers, offering 24/7 service and maintaining a vast inventory of high-quality equipment. This mission-critical service ensures that patients in end-of-life care receive necessary equipment promptly, a crucial factor in maintaining comfort and dignity.

Kevin Webb, Founding Partner of Accord and co-founder of DME Express, reflected on the company's journey. "After more than 12 years growing and developing DME Express alongside Mark Borneleit, I could not be more proud of what this team has built," Webb said. "We have created a mission-critical platform at the intersection of healthcare delivery and logistics, and I am incredibly excited about what lies ahead as DME Express partners with Palladium to scale the business."

Accord's exit represents a successful realization of its investment, having nurtured the company from its inception to a point where it attracted a major private equity player. The focus now shifts to how Palladium's involvement will transform the company's scale and market position.

Navigating a Market of Growth and Scrutiny

The transaction occurs within a durable medical equipment market experiencing robust growth. Valued at nearly $200 billion globally in 2025, the market is projected to grow at a compound annual rate of over 6%, driven by the aging U.S. population and the increasing prevalence of chronic diseases that require long-term equipment support.

However, the infusion of private equity capital into the hospice sector is not without controversy. While firms like Palladium provide essential capital for growth and efficiency, the industry has come under increasing federal scrutiny. In March 2026, regulators launched a cross-agency probe into the effects of private equity ownership on the quality of care in healthcare, including hospice facilities.

Research published in journals like JAMA Network Open has raised concerns, suggesting that for-profit, and particularly private equity-owned, hospices may underperform non-profits on certain quality metrics. Studies have pointed to lower spending on direct patient care and higher rates of caregiver complaints in some for-profit settings. While DME Express is a service provider to hospices rather than a direct care provider, its operations are inextricably linked to the quality and cost dynamics of the clients it serves.

The challenge for the new partnership between Palladium and DME Express will be to pursue its aggressive growth ambitions—expanding geographically and through acquisitions—while maintaining the high-touch, mission-driven service model that is critical in the sensitive field of hospice care. As private equity continues to reshape the healthcare landscape, the performance of companies like DME Express will be closely watched as a barometer for balancing profit-driven expansion with the paramount needs of vulnerable patients.