The Federal Reserve cut interest rates by 0.5% on Wednesday, which will likely have an impact on hospice M&A. Interest rates have widespread implications for the hospice mergers and acquisitions market, particularly when it comes to private equity investments. PE firms, and some publicly traded companies, tend to finance their acquisitions by taking on debt. […]
Hospice merger and acquisition (M&A) activity tapered off in 2023 and early 2024 compared to the flurry of prior years, due in part to regulatory and economic pressures. Hospice deal volume and valuations have trended down from record-high levels during 2019 through 2022. The cool down began last year as hospice transaction activity lulled. This […]
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 […]
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