A restructuring of the Medicare Hospice Benefit could have impacts on merger and acquisition activity in the industry. Calls for changes to hospice eligibility and length of stay are growing louder among industry stakeholders. A main concern being voiced to the U.S. Centers for Medicare & Medicaid Services (CMS) is that the current six-month prognosis […]
Category: M&A
Agape Care Group has acquired two hospices for undisclosed sums — Birmingham, Alabama-based Hope Hospice and Assured Hospice in Cartersville, Georgia. Agape is a portfolio company of Ridgemont Equity Partners. With the addition of Hope Hospice, the company’s footprint has expanded across 20 Alabama counties. Through the Assured Hospice deal —coupled with a recent de […]
Regulatory challenges have contributed to the hospice sector’s current M&A slump, but this year’s volume nevertheless aligns with experts’ forecasts. In addition to those pressures, the industry is also in a cooling period in which companies focus on integrating the assets that many acquired during flurries of activity in 2021 and 2022, according to Mark […]
Hospice & Community Care has inked a deal to affiliate with Hospice of Central Pennsylvania. The affiliation is set to solidify at the beginning of next year, with each organization retaining its own brand and locations. Joining forces will also allow the two Pennsylvania-based nonprofit hospice and palliative care providers to realize cost-savings potential when […]
When it comes to hospice M&A, both buyers and sellers must have their eyes out for warning signs that could kill a potential deal. Consolidation remains widespread in the hospice space, though transaction volume has slipped in 2023 compared to prior years. During Q1 of this year, about 14 hospice, home care and home health […]
The hospice and home health M&A landscape has become marked with uncertain terrain. Deal volume thus far in 2023 is down 50% to 60% from the previous two years, Cory Mertz, managing partner at M&A advisory firm Mertz Taggart, said at the HI2 Conference in Chicago. While companies that have a positive cash flow and […]
Some hospice owners have been selling their businesses soon after securing a license. This has prompted federal agencies to pursue new regulations to address the problem. The practice appears to stem from a rash of newly licensed hospices that have emerged in California, Nevada, Texas and Arizona. Some of these providers have secured licenses, as […]
Radiant Health’s new partnership with CareSource reflects three key trends impacting the health system — growth in Medicare Advantage, the rising prominence of home-based care and consolidation among payers and providers. Radiant Health is an organization recently established by Metta Healthcare and the senior living operator United Church Homes. Through its partnership with CareSource, Radiant […]
Addus HomeCare Corp. (NASDAQ: ADUS) has reached an agreement to purchase the home health, hospice and private duty operator Tennessee Quality Care for $106 million. Tennessee Quality Care operates 17 locations serving an average of 1,800 patients daily throughout 50 of the 95 counties in its home state. About 70% of its business is home […]
The UnitedHealth Group (NYSE: UNH) subsidiary Optum has penned a deal to acquire Amedisys (NASDAQ: AMED) in an all-cash transaction of $101 per share, or about $3.3 billion. The pending transaction followings a previous offer to aquire Amedisys by the home infusion company Option Care Health (NASDAQ: OPCH) for $3.6 billion. “We are excited about […]