When it comes to hospice acquisitions, buyers’ and sellers’ expectations on price tags are becoming more aligned. A surge of deals in 2021 and 2022 led to record-high valuations in the space with multiples reaching in excess of 30x in some instances. While many buyers were willing to pay that premium, some stepped out of […]
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 […]
The U.S. Department of Justice (DOJ) will investigate potential antitrust violations in the UnitedHealth Group (NYSE: UNH) subsidiary Optum’s forthcoming acquisition of Amedisys, Inc. (NASDAQ: AMED). To date, neither Amedisys nor Optum have been accused of any wrongdoing. The DOJ performed a similar investigation when Optum acquired the health care technology company Change Healthcare earlier this […]
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 […]
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 […]
Though investors and strategic buyers didn’t wade quite as deep into the hospice market in 2022 compared to years prior, the tide may be rising for M&A during 2023. Though hospice M&A activity fluctuated last year, volume is expected to rebound, but probably with larger numbers of smaller deals. Swelling demand for hospice and home […]
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 […]
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 […]
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