Home Health M&A Activity Spikes

Home health merger and acquisition activity has spiked this month, according to newly published figures.

With six announced deals so far, November is already this year’s second most active month in home health and hospice mergers and acquisitions, market intelligence firm Irving Levin Associates reported.

The month has trumped all others in 2015 except January, which had 11 M&A announcements, the firm said.

The acquirers in five of the six November deals were publicly traded companies that have been buying throughout the year, the firm added.

The cumulative deal value of the three November transactions with a disclosed price was $108.7 million.

One large transaction that did include a publicly announced dollar value was Amedysis Inc.’s (NASDAQ: AMED) acquisition of Infinity HomeCare for $63 million.

The spike in M&A activity this month comes during a time of heightened M&A volume in the home health space in general. Despite a challenging Medicare reimbursement environment, home health merger and acquisition activity experienced an upturn in the third quarter of 2015, with nine publicly announced transactions.

The high M&A volume in home health is expected to continue in 2016.

Written by Mary Kate Nelson