Will Record Home Health M&A Prices Continue?
In 2016, home health company valuations hit impressive new peaks. A handful of landmark deals on Medicare-certified and personal care occurred last year as well. But will this trend continue? To find out more, Home Health Care News (HHCN) is hosting its inaugural Summit this September 14th in Chicago to discuss industry trends and M&A.
At the HHCN Summit, learn more about the trends in home health industry and expand your professional network.
As part of the upcoming event, HHCN recently asked Luke James, Chief Strategy Officer at Encompass Home Health and Hospice and Jim Moskal, Partner and Global Healthcare Practice Leader at Livingstone Partners for their thoughts whether high valuations will continue into 2017.
“Public company multiples are at recent highs,” said James. “This has some trickle down effect depending on the quality and size of the organization being sold.”
“The short answer is yes and they’ve been that way for the last couple of years,” said Moskal.
According to both men, high valuations will still remain, at least in the short-term. Moskal explained how today’s high valuations are often the result of a combination of a few factors such as size and scale.
Both James and Moskal strongly believe that size and scale matter in today’s industry and that organizations must maximize operational efficiency through a combination of size and use of technology.
Strategically though, companies often choose to increase size because of valued based reimbursement. Big hospital systems and Medicare Advantage payers often want to partner with home health providers in order to have geographic reach and provide coverage across a region or state.
“You don’t want to partner with 20 or 30 home health providers – you want to partner with one or a couple,” said Moskal.
But questions still linger. The industry is facing a some regulatory uncertainty surrounding the potential repeal of the Affordable Care Act.
“That is bringing more complexity for buyers to consider, which has various negative effects on deal making,” said James.
8:00am – 9:00am — Coffee, Continental Breakfast & Networking
9:00am – 10:00am — Views from the C-Suite
Top executives at leading home health and personal care companies offer their take on the biggest opportunities and threats today. Get their take on labor challenges, regulatory mandates, new competition, and innovations reshaping care delivery and business practices.
Thom Gilday, President and COO, Brightstar Care
Keith G. Myers, CEO and Chairman, LHC Group
Adam Nielsen, CEO at Great Lakes Caring
Additional Panelists Coming Soon
10:00am – 10:30am — Networking Break
10:30am – 11:30am — M&A Outlook
Home health company valuations hit impressive new peaks in 2016, and the year saw landmark deals on both the Medicare-certified and personal care side. Learn what drove these trends, whether they will continue into 2017, and how to position yourself for success whether you’re looking to buy, sell, or read the market for signs of where the industry is headed.
Luke James, Chief Strategy Officer at Encompass Home Health and Hospice
Jim Moskal, Partner and Global Healthcare Practice Leader at Livingstone Partners
Chris Hendrickson, Managing Director at Ziegler