Despite regulatory and operational challenges within the home health and hospice industries, competition remains strong, as evidenced in Chicago-based research firm LexisNexis’ 2017 Top 100 Home Health and Hospice Agencies Rankings.
The 2017 rankings were compiled by LexisNexis Risk Solutions utilizing 2016 medical claims and patient volume data from the company’s proprietary “MarketView” claims database, which annually gathers and assesses data on more than 1.25 billion medical claims across the country.
Home Health Top 10
Claiming the title of top home health provider in terms of market share is Louisville, Kentucky-Based Kindred Healthcare (NYSE: KND). The company has a 5.85% market share according to the rankings, a slight uptick from its share in 2015 (5.81%), when the list was last published.
Rounding out the top 10 of home health providers, in terms of market share, include:
On the heels of the rankings release, Lafayette, Louisiana-based LHC Group, Inc. (Nasdaq: LHCG) and Louisville, Kentucky-based Almost Family, Inc. (Nasdaq: AFAM) announced their $2.4 billion merger Thursday morning.
The merger could benefit companies’ reputations in the long run, explained Chris Golden, strategic account executive at LexisNexis Risk Solutions Health Care.
“Our 2017 Top 100 list is based on 2016 claims data, so, although it is too early to say for certain what exactly the merger will mean for purposes of the 2018 list, it is likely that the merger will solidify the new organization’s position as a top 3 provider in the country,” Golden said in e-mail to Home Health Care News. “This news continues the trend of consolidation among the largest post-acute care providers that we noted in previous years and expect to continue moving forward.”
Hospice Top 10
In terms of hospice providers, Miami-based VITAS Healthcare had the largest market share at 4.52%, knocking Kindred out of the top spot from its 2015 ranking, which has a current market share of 3.54%.
Other top hospice providers, in terms of market share, include:
For Abbey Bernardi, director of market planning at LexisNexis Risk Solutions, the rankings give providers a tool to evaluate the “competitive landscape.”
“The market for home health and hospice providers is fast-paced and almost always changing,” Bernardi said in a press release.
This may hold true, as M&A activity in the home health and hospice sectors may soon see an upswing, particularly as stock prices of home health companies rebounded earlier this month in the aftermath of the Centers for Medicare and Medicaid Services’ (CMS) decision to not implement its home health groupings model (HHGM).
Further, a recent report illustrates the financial viability of companies within the home health industry, in terms of return on equity.
The intent of publishing the rankings—which can be found in full at LexisNexis—is to give home health and hospice providers a benchmark featuring market landscape information to help them better understand their market foothold for potential mergers and acquisitions (M&A) activity and growth for business, according to LexisNexis.
Written by Carlo Calma
Companies featured in this article:
Almost Family, Amedisys Inc., Bayada Home Health, Brookdale Senior Living, Compassionate Care Hospice, Compassus, Crossroads Hospice & Palliative Care, Curo Health Services, Encompass Home Health and Hospice, HCR Manorcare, Hospice of the Valley, Interim Healthcare, Kindred Healthcare, LexisNexis, LexisNexis Risk Solutions, LHC Group, Seasons Hospice & Palliative Care, Trinity Health, Visiting Nurse Service of New York, VITAS Healthcare