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 […]
Rising interest rates and unlikely to deter investors or strategic buyers from acquiring hospice companies. The Federal Reserve raised interest rates by 0.75% earlier this month. The rates now range from 3.75% to 4%. The Fed will likely institute further rate hikes to combat record-high inflation. Higher interest rates will push up borrowing costs, making […]
Texas-headquartered Choice Health at Home has entered the personal care space with the acquisition of Instant Care of Arizona for an undisclosed sum. The transaction also gives Choice its first foothold in the Grand Canyon State. Established in 2003, Instant Care of Arizona provides in-home senior care and caregiving support to patients and their families […]
While hospice and home health M&A continue to burgeon, non-medical home care is starting to slip out from under their shadows. Deal volume for non-medical home care companies outstripped that for hospice or home health during the first half of the year. As of the end of Q2, this included 23 deals compared to 17 […]
A turbulent economy and slight cool-down in deal activity early in the year have led some to question whether the record-high valuations for hospice assets will start to tumble. Like most business sectors, health care has felt the aftershocks of global economic trends such as rising inflation, supply chain disruption, and the continued effects of […]
Disruption in home health reimbursement has an influence on the hospice mergers and acquisitions market, particularly among the rising number of companies offering both services. The most recent example is the 2020 implementation of the Patient-driven Groupings Model (PDGM). Uncertain about how this new payment system would impact their businesses, a number of strategic buyers […]
More hospice and palliative care providers are pursuing joint ventures with hospitals and health systems. Joint ventures offer unique advantages compared to traditional referral streams, according to Aaron Stein, COO of Contessa Health, a subsidiary of Amedisys (NASDAQ: AMED). Joint ventures allow providers to develop integrated care models that build improved transitions of care, said […]
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