Though many expect a hospice M&A rebound in 2024, the scales are tipping in favor of home health companies among buyers. Generally, signs point to heightened buyer activity this year, particularly among private equity as interest rates start to come down. After 2023’s slump, PE firms have been sitting on more than $800 million in […]
After a rocky year for M&A, two of the publicly traded hospice providers are poised to pursue more deals in 2024. Based on 2023 earnings trends, The Pennant Group (NASDAQ: PNTG) and Addus HomeCare Cop. (NASDAQ: ADUS) are well-positioned to buy, according to an analysis by the M&A advisory firm Mertz Taggart. While the majority […]
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 […]
Hospice merger and acquisition activity has taken a downturn in 2023, which is in line with projections from M&A experts. Approximately 14 hospice, home care and home health transactions were reported during the first quarter of 2023, according to recent data from Mertz Taggart. Less than a handful (about 4 or 5) of these were […]
The implications of Option Care Health’s (NASDAQ: OPCH) pending $3.6 billion acquisition of Amedisys Inc. (NASDAQ: AMED) reflect rapidly changing market forces that could affect the industry at large. The rationale behind the transaction rests on four pillars, Option Care executives recently indicated — value-based reimbursement, the importance of scale in payer negotiations, a desire […]
Hospice transaction activity has plummeted to its lowest level in years, new dealmaking data suggests. That’s no surprise, as many anticipate health care investors to operate with a more conservative approach in 2023. The cooldown, experts note, is partly due to inflation reaching multi-decade highs, uncertainty in the banking world and credit markets drying up. […]
LHC Group has acquired Delaware-based Summit Home Care for an undisclosed sum, signaling that the company will remain active on the M&A front following Optum Health’s recent $5.4 billion buyout. Optum, a subsidiary of UnitedHealth Group (NYSE: UNH), closed the LHC Group transaction in February and has since been quiet on its plans for its […]
Though hospice deal volume dipped in 2022 compared to previous years, five particular transactions could paint a larger picture of where investors see value in the space. These interesting, unusual or groundbreaking deals could signal what’s to come in 2023 and help shape the hospice market’s long-term future. Optum to pick up LHC Group Though […]
Regulatory attention heating up in the hospice industry could be impacting buyers’ mergers and acquisitions decisions. Nuances in the regulatory environment can be difficult to navigate, perhaps more so for private equity and venture capital investors that are new to the industry. Changes to federal enforcement practices during the next year could bring some additional […]
By continuing to use the site, you agree to the use of cookies. more information
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.
