The Key Factors Shaping Hospice Multiples in 2023

Grasping the mix of objective and subjective forces fueling hospice valuations is key to maximizing a return on investment when considering a sale, according to dealmaking experts. Hospice valuations have remained high, partly due to an influx of new investors entering the space. Generally, these buyers see a promising return on investment and sustainable business […]

Option Care, Amedisys Deal Reveals a ‘Whole Different Landscape’ for Hospice Providers

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 […]

Interest Rates Likely to Rise, Impact PE Hospice Buyers

U.S. Federal Reserve Chair Jerome Powell has indicated that interest rates may rise faster than expected, which could have a significant impact on hospice M&A trends. Rate hikes are the Fed’s primary weapon against inflation, which climbed at a record pace last year. The U.S. Department of Commerce in January clocked the run of inflation […]

Behavioral Health, Chronic Disease Among Top Health Care Macro-Trends Impacting Hospices

Though operators often feel siloed within the Medicare Hospice Benefit, they are not shielded from the shifting currents in the health care system at large. This is the first of a series of articles that will explore these trends, beginning with the meteoric rise of behavioral health and chronic disease management — both as essential […]

Smaller Deals Likely to Reign in 2023 Hospice M&A

Though buyers remain hungry for hospice acquisitions, smaller deals will likely be the most prevalent during 2023. Acquisition patterns established in 2021 and 2022 are shaping the M&A outlook for the current year. The number of hospice and home health deals fell by nearly a third last year, though a few “megadeals” have driven up […]

5 Game-Changing Hospice Deals from 2022

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 […]

Voices: Mark Kulik, Senior Managing Director, The Braff Group

This article is sponsored by The Braff Group. In this Voices interview, Hospice News sits down with Mark Kulik, Senior Managing Director, The Braff Group, to learn how the HHA and hospice M&A landscape is shaping up for 2022 heading into 2023. He discusses the impact of the recently announced CMS rate cuts, and he […]

Kain Capital Forms New Hospice Holdings Company, Makes First Acquisition

Kansas City-based Hospice Care of America (HCA) was recently acquired by a newly formed holdings company established by the private equity firm Kain Capital LLC. Financial details of the transaction were undisclosed. Kain Capital established PERA Holdings as a way to gain a foothold in the hospice market. HCA marks the company’s first purchase, acquiring […]

As More Hospices Close Their Doors, Staffing Strains Are Becoming Crystalized

Staffing issues have increasingly been at the root of leading causes behind shuttered hospice programs nationwide. Demographics are pushing up demand for end-of-life care amid long-standing staffing shortages in hospice. Some hospices have been unable to sufficiently fill their ranks to keep up with that demand for care, resulting in them either temporarily limiting new […]