There’s never been a hotter time for the buying and selling of home health, home care and hospice agencies. Indeed, for the first time in more than a decade, all three industries are selling at relative high valuations, analysts point out.
There are several contributing factors for the booming M&A landscape, strong borrowing rates, a robust infusion of private equity investment and the overall strong state of the U.S. economy among them.With that being said, there are three clear main drivers, however.
Diversity: Companies are looking to insulate themselves from adverse market and regulatory changes by branching out into different business lines.
A ‘one-stop shop’ mentality: Home health, home care and hospice players are striving to operate throughout the continuum of care so both payers and customers never have to leave their business.
Prioritizing value over volume: Companies are positing themselves to take advantage of value-based care opportunities and alternative-payment models.
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