A rich mix of hospice merger and acquisition (M&A) activity at the end of 2023 is fueling trends into next year. Hospice M&A activity has diverged from the frenzied pace set in recent years. The hospice space in the last five years has seen record-breaking multiples, a prevalence of private equity-backed platform transactions and large-scale […]
Enhabit Inc. (NYSE: EHAB) must be put up for sale, according to a letter from minority investor AREX Capital Management to the home health and hospice company’s board. AREX owns about 4.7% of Enhabit’s shares. The hedge fund first posited that Enhabit should be sold in a June letter to the board. Enhabit in August […]
Though most U.S. hospice providers have the same problem — a workforce shortage — many seek to address it using unique solutions. Worsening workforce shortages have been keeping hospice leaders awake at night for several years running. Rising turnover due to the COVID-19 pandemic exacerbated the crisis, leading some hospice providers to shut down their […]
Thus far in 2023, hospice merger and acquisition activity has deviated from prior years. This year is distinctive because of factors such as valuations, asset sizes and the mix of buyers. A number of trends have shifted. The last five years saw record-breaking multiples in the hospice space and private equity-backed platform deals were among […]
Enhabit Inc. (NYSE: EHAB) has confirmed that it will begin considering “strategic alternatives” that could include a potential sale or merger. The Dallas-based home health and hospice provider announced today that it had satisfied the conditions of its Tax Matters Agreement (TMA) with its former parent company Encompass Health (NYSE: EHC). Enhabit emerged from the […]
Enhabit Inc. (NYSE: EHAB) has announced plans to launch a strategic review process that could result in a potential sale. The consideration marks another move among large home health and hospice providers in the industry. The company is getting ready to explore various transaction options in order to satisfy the terms of its Tax Matters […]
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 […]
As more hospices engage with Medicare Advantage (MA) plans, they may be able to learn from the experiences of some home health providers. Historically, MA has not covered hospice. Now, many operators are contracting with managed care plans for other service lines, such as palliative care, or they may be participating in the hospice component […]
Amid persistent workforce shortages, sign-on and employee referral bonuses, as well as enhanced benefits, are bearing the most fruit for hospice providers. Though many providers are reporting upward trends when it comes to recruitment and retention, some clinical and administrative vacancies remain pain points. Filling gaps in the hospice workforce has come with hefty financial […]
A minority investor in Enhabit Inc. (NYSE: EHAB) is urging the hospice and home health provider to consider a “full and fair sale process.” The investor – New York-based hedge fund AREX Capital Management, which holds about 4.5% of the shares of Enhabit – brought up the sale idea in a letter sent to the […]
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