2025 Could See Uptick in Hospice M&A, Less ‘Deal Fatigue’

Hospice transactions are facing a new world of challenges during a time when M&A activity is projected to ramp up after recent lulls. More founders who began their organizations when the Medicare Hospice Benefit was established in the 1980s are reaching retirement. A large contingent will be seeking an exit strategy that will sustain their […]

Hospice Compliance, Reimbursement Pressures on M&A ‘Higher Than Ever Before’

The outlook for the hospice M&A market is equal parts promising and potentially turbulent, with regulatory and reimbursement pressures among the challenges on investors’ radar. Hospice merger and acquisition activity has seen a slump compared to previous record-breaking years. Interest in the space isn’t anticipated to abate anytime soon, but hospice transactions are facing greater […]

3 of the Fastest Growing Hospice Companies

Three of the nation’s for-profit hospice companies have hit the accelerator on revenue growth, achieving triple-digit percentages. Each of these organizations — Traditions Health, Fortis Health and HealthFlex Hospice — appeared on Inc. magazine’s 2024 listing of the fastest-growing private companies in the United States. To be eligible for the list, companies must be privately […]

Hospice’s Post-VBID Value-Based Outlook

The post-Medicare Advantage hospice carve-in landscape could include wider value-based reimbursement avenues in the hospice space, leading providers to pivot into MA payer relationships. The forthcoming end of the hospice component of the value-based insurance design (VBID) demonstrative takes effect Dec. 31. Launched in 2021, the carve-in was designed to test coverage of hospice care […]

Hospices Face ‘Hard Roads’ in Budgeting for Sustainable Growth

A myriad of regulatory, reimbursement and workforce pressures have challenged providers when it comes to clinical capacity and associated revenue. Hospice budgeting practices hinge on several factors, according to Matt Chadwick, CFO of Well Care Health. Building a sustainable financial structure for end-of-life care delivery can be a challenging feat when navigating the impacts of […]

Aveanna Battles Labor, Capacity Constraints in Q2

The labor shortage and capacity constraints are the prevailing headwinds facing Aveanna Healthcare Holdings (NASDAQ: AVAH). A cornerstone of the company’s strategy is fostering growth through value-based contracts in its private duty and home health businesses. The company sees this approach as a pathway for improving hiring and building clinical capacity. Aveanna added four value-based […]

Hospice Fuels Enhabit’s Growth Amid Costs, Headwinds

Enhabit Inc. (NYSE: EHB) has seen mixed financial results with headwinds impacting its overall revenue amid hospice tailwinds propelling these services toward sustainable growth. The home health and hospice provider formed when the company spun off from Encompass in 2022. The last year has been filled with various challenges alongside significant opportunities, said Enhabit President […]

The Pennant Group Leverages Partnerships, Deals to Spur Expansion

The Pennant Group (NYSE: PNTG) is in a period of expansion. The home health and hospice provider has pursued a series of acquisitions and new partnerships that brought more than 6,000 new patients into their care, close to a 50% increase, according to CEO Brent Guerisoli. These numbers do not include expected increases from the Pennant […]

Crissy Carlisle Steps Down as Enhabit CFO

Crissy Carlisle is stepping down as CFO of the home health and hospice provider Enhabit Inc (NYSE: EHAB). Carlisle’s departure follows the completion of a strategic review that concluded that Enhabit should remain a standalone company rather than sell. This prompted a feud with minority investor AREX Capital Management, which pushed for a sale. This […]

Addus Pulling Back on Hospice Deals

Strategic priorities for Texas-headquartered Addus HomeCare Corporation (NASDAQ: ADUS) continue to focus on personal care and home health and less on hospice as the company waits for the dust to settle following its Gentiva personal care acquisition. Improvements in hospice valuation trends have not come far enough in recent years to make the market a […]