Home Health, Hospice Predicted to See Strong Growth in 2017
Professionals and investors in the health care services industry are optimistic about the industry’s future business performance—and they’re particularly bullish about the growth of the home health and hospice sector in the coming year.
In fact, the home health and hospice sector is likely to see strong growth in the next 12 months, according to 53% of respondents in a recent survey from Capital One (NYSE: COF). The survey was conducted between Aug. 1, 2016, and Oct. 6, 2016, prior to Capital One’s Healthcare Services Conference. The respondents included 150 attendees, including private equity investors, senior-level executives and other intermediaries who shared their opinions on the future of the industry.
About 68% of the respondents surveyed expect the health care service industry’s business performance to gain strength in the next 12 months, while 31% expect the industry to deliver a similar financial performance in the coming year. Only 1% expect next year’s financial performance to be weaker.
“Expectations are looking up as we close out the current year, and our survey revealed a shared sense of optimism by health care executives from all corners of the industry,” Capital One Healthcare President Darren Alcus said in a press release. “We’re seeing more companies evaluate hiring and investment opportunities to further expand their businesses in the year ahead.”
About 67% of survey respondents plan to pursue an acquisition in the next 12 months, and just under half of respondents expect to refinance and/or recapitalize within the next year, the survey revealed.
Companies intend to grow in other ways, too.
About 56% of survey respondents have either made new hires in 2016 or intend to before 2016 ends. Of those hiring, 55% expect to hire C-level executives, and 60% plan to hire managers. Only 17% of respondents revealed that they do not have plans to hire before the end of the year.
Despite anticipating future growth and financial prosperity, health care service industry professionals are not devoid of worry. Regulatory scrutiny is the most concerning aspect of the health care industry, according to 41% of survey respondents. Pay-for-performance, and the implementation of and changes to the Affordable Care Act (ACA), also worry respondents; 23% of respondents said pay-for-performance is their primary concern, while 22% said that of the implementation of and changes to the ACA.
Written by Mary Kate Nelson