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. […]
As M&A in the for-profit space continues its two-year slump, nonprofits are consolidating in rising numbers. Recent years have seen an uptick in consolidation activity among nonprofits in the hospice space. Increasingly, nonprofits are pursuing acquisitions and affiliations, as well as forming regional collaboratives. In addition, some nonprofits have also been acquired by for-profit companies. […]
Interest has mounted in the palliative care arena, but building and sustaining these services requires stronger reimbursement and workforce resources. The palliative care space is gaining momentum, despite large challenges tied to staffing and reimbursement strains, according to Mark Kulik, senior managing director of the advisory firm The Braff Group. Palliative care is becoming an […]
Hospice transactions are facing a new world of challenges during a time when M&A activity is projected to ramp up after recent lulls. More founders who began their organizations when the Medicare Hospice Benefit was established in the 1980s are reaching retirement. A large contingent will be seeking an exit strategy that will sustain their […]
The outlook for the hospice M&A market is equal parts promising and potentially turbulent, with regulatory and reimbursement pressures among the challenges on investors’ radar. Hospice merger and acquisition activity has seen a slump compared to previous record-breaking years. Interest in the space isn’t anticipated to abate anytime soon, but hospice transactions are facing greater […]
As private equity investors seek out hospice and other health care transactions, they should retrain their sights on potential benefits for patients in addition to financial metrics. Driving this is a changing regulatory environment as scrutiny heats up for both hospices and the private equity firms themselves. Tightened regulation in the hospice space has led […]
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 […]
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 […]
Private equity firms in the hospice space are adapting their “roll-up” strategies as economic uncertainties persist. Roll ups are a common approach to private equity investment. This occurs when a firm buys a larger platform company and then gradually acquires smaller organizations to foster growth. But in 2023, deal volume slowed across the board. While […]
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