Nonprofit Hospices Selling to For-Profit Providers, Trend May Accelerate

Industry consolidation has been robust in the hospice space, with deal volume and valuations outpacing other health care industry sectors. Most of these transactions involve one for-profit company buying another. However, more instances are cropping up in which a for-profit agency purchases a nonprofit hospice. While individual nonprofits have grown in recent years, in aggregate […]

High Hospice Valuations Shift Amedisys M&A Towards Home Health

Amedisys (NASDAQ: AMED) will be honing its acquisitional focus more towards the home health care space heading into next year. Soaring valuations in hospice, along with a crowded market and the complexity of integrating these assets are among the factors pulling the company’s gaze, according to CEO Paul Kusserow. The hospice merger and acquisitions market […]

Hospice Fee-For-Service Model Attractive to Investors

Favorable demographics and rising demand are attracting a range of investors to the hospice space, with private equity leading the way in terms of deal volume. However, the fee-for-service payment model within the Medicare Hospice Benefit is also a key driver of buyers’ interest. Value-based payment programs have opened up to hospices in 2021. This […]

Wellspring Capital Acquires Caring Brands International

Private equity firm Wellspring Capital Management has acquired Caring Brands International, parent company of home health and hospice franchise company Interim Healthcare, for an undisclosed amount. The seller, PE outfit Levine Leichtman Capital Partners, purchased the company in 2015. Caring Brands is the seventh largest home-based care provider in the United States, in addition to […]

Intrepid USA Poised for Growth with New Private Equity Backers

Dallas-based Intrepid USA is gearing up for rapid growth in 2022, fueled in part by an infusion of capital from new private equity investors. The recapitalization is expected to complete in that last quarter of the year or in early 2022, CEO John Kunysz told Hospice News. Intrepid USA provides hospice, home health and personal […]

Small Hospices Could Become Prime Targets for PE Buyers

Private equity investors remain bullish on hospice with no signs of slowing down. However, with a number of high-profile transactions completed or in the works during 2020 and 2021, the number of hospices of scale that are likely to come to market is dwindling. During the next few years, PE firms will likely fix their […]

Hospices Seeking Diversified Assets in Robust M&A Market

With the hospice mergers and acquisitions market showing no sign of slowing down, providers with high performance on quality measures, scale and size are anticipated to attract investors’ eyes. Even as strategic, private equity and non-traditional buyers continue to snap up hospices, those providers are themselves increasingly investing in more diversified assets, such as home […]

Senate Finance Committee to Probe Private Equity Role in Kindred at Home

The U.S. Senate Finance Committee is investigating private equity interest in the home health and hospice provider Kindred at Home. The move reflects growing concern among lawmakers about the impact of private equity’s involvement in hospice.  The private equity firms Welsh, Carson, Anderson & Stowe (WCAS) and TPG Capital in 2018 acquired a combined 60% […]

Hospice M&A Riding High on Demographic Tailwinds, but Staff Shortages Threaten Growth

The hospice mergers and acquisitions market has been burgeoning for the last several years and continues to accelerate. Hospice leads the health care sector in terms of investor interest and valuations, but providers may hit some walls if workforce shortages worsen. Among the driving forces behind this continued acceleration include demographic tailwinds, rising demand and […]

LHC Group Doubles Down on Hospice Deals Despite High Valuations

LHC Group (NASDAQ: LHCG) aims to continue growth of its hospice services as this year unfolds with a number of acquisitions in the works. Record-high multiples for hospice acquisitions are not deterring LHC Group from pursuing those transactions. Hospice deals accounted for 71% of the $502.5 million the company currently earmarked for its M&A pipeline. […]