How 3 Hospice Companies Are Beating the Workforce Shortage

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 […]

The Most Significant Hospice Deals So Far in 2023

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 Begins Mulling Strategic Alternatives, Possible Sale

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 […]

‘Progress Has Not Been Fast Enough’: Enhabit Reveals Plans to Launch Strategic Alternatives Process

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 Pressures Contributing to M&A Slump

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 […]

Hospices, MA Plan Leverage Data to Align Contract Incentives

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 […]

Where Hospices Are Seeing the Greatest ROI on Staffing Investments

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 […]

Minority Investor Pushing for Enhabit Sale

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 […]

Enhabit’s 2023 M&A Strategy Leans Toward Hospice Assets

After becoming a public entity last year, Enhabit Inc.’s (NYSE: EHAB) M&A journey has narrowed towards hospice, diverting less in home health’s direction. Reimbursement uncertainties, shrinking pools of available assets, and rising valuations in the home health space are forces steering the company’s sights towards hospice, according to Enhabit executives. Large-scale consolidation in both home […]

Enhabit Sees Hospice Workforce Constraints Ease, Admissions Decline

Enhabit Inc. (NYSE: EHAB) is seeing staffing-related capacity constraints start to ease despite a rocky quarter for its hospice segment. The company hired 101 full-time nurses during the first quarter, including 91 in home health and 10 in hospice. Overall, its full-time vacancy rate dropped from 24.3% to 23.8%, about 50 basis points, according to […]