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 […]

How the 2023 Home Health Rule Could Change the Game in Hospice M&A

The pendulum of investor interest has swung hard into the hospice market in recent years, but shifts in reimbursement could steer buyers towards home health. Uncertainty earlier this year around Medicare’s proposed 2023 home health payment rates led some stakeholders to expect a swerve towards hospice. The U.S. Centers for Medicare & Medicaid Services (CMS) […]

Hospices Likely to Ramp Up Behavioral Health Investments

Behavioral health care is a rising star in health care in terms of growth and demand, and the trend is leading some hospices to invest in the space. Several considerations are driving their growing interest. For one, addressing the psychosocial and emotional aspects of dying and bereavement has been an intergral part of the hospice […]

M&A Buyers Scour Hospice Financials for Compliance Risks

Buyers in a hot hospice M&A market are bringing compliance under a microscope as regulators keep a tight watch. All hospice transactions undergo some type of compliance review. But there’s nothing routine about these reviews in today’s current hospice regulatory environment. Combing through a hospice’s referral streams and financial or claims data can help identify […]

Gilchrist and Luminis Health Form Joint Venture, Find ‘Sweet Spot’ in Health Care Delivery

Maryland-based hospice and palliative care provider Gilchrist recently formed a joint venture with the hospital system Luminis Health to expand the full scope of senior and geriatric care in the state’s southern region. Through the JV, the two organizations formed the Luminis Health Gilchrist Lifecare Institute as a way to provide an “integrative continuum of […]

Beyond Dollars & Cents: Maximizing Sellers’ Returns in Hospice M&A

Hospices considering a sale should not underestimate their value proposition by limiting their focus to revenues and margins. With hospice M&A staying hot, a host of operational and financial pressures — coupled with record-high valuations in the space — has driven a range of providers to consider selling. While a healthy balance sheet is critical […]

Hospices that Excel During COVID More Attractive to Buyers

Hospice acquisition volumes and price tags have hit record highs for several years running. Now, the companies that performed well under the pandemic’s pressure may be drawing more interest from buyers. While a sizzling hospice market saw a cooled start this year, merger and acquisition activity is still outpacing other health care sectors. Demographic tailwinds, […]

CDR Asks State to Approve Sale of 2 Oregon Kindred at Home Locations

Two Oregon locations included in Humana’s (NYSE: HUM) divestiture of Kindred at Home’s hospice assets are currently under review by the state’s health authority — part of the diligence process involved in any M&A transaction. Humana in April signed a definitive agreement to sell a 60% stake in Kindred at Home to private equity firm […]

Regulators Taking Aim at Hospice PE Backers

Private equity firms are pouring investment dollars into hospices at a record pace. Meanwhile, legislators and regulators as far up as the White House are taking aim at those firms. Despite a cool down in the hospice mergers and acquisitions market during the first quarter of 2022, private equity firms have stayed aggressive on deals. […]