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 […]
After a 2023 slump, health care dealmakers are voicing optimism for a 2024 rebound. Transaction volume declined in the hospice and home-based care space in 2023, following the two record-breaking prior years. Only three hospice deals took place in the third quarter of this year compared to 11 in Q3 2022 and 18 in the […]
Private equity firms typically turn around and sell an asset within three to five years post-acquisition. However, some may slow that cycle down in today’s economic environment. The presence of private equity firms in the hospice arena has expanded exponentially during the past several years. But this year, deal volume slowed across the board. While […]
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 […]
Payers and private equity investors are among the new entrants stepping deeper into the hospice space. This trend has heated up competition and merger and acquisition (M&A) activity, while posing opportunities for strategic growth in an evolving value-based landscape. The hospice industry has seen a swath of new entrants amid record-level transaction volume and soaring […]
A restructuring of the Medicare Hospice Benefit could have impacts on merger and acquisition activity in the industry. Calls for changes to hospice eligibility and length of stay are growing louder among industry stakeholders. A main concern being voiced to the U.S. Centers for Medicare & Medicaid Services (CMS) is that the current six-month prognosis […]
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 […]
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 […]
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