Pre-coronavirus, the home health and home care industries were already poised for historic consolidation, thanks to the Patient-Driven Groupings Model (PDGM), rising minimum wages and other operational pressures. Industry leaders predict that the COVID-19 emergency will only drive M&A further going forward. However, home-based care businesses interested in picking up new agencies should heed caution, […]
Category: M&A
The largest Program of All-Inclusive Care for the Elderly (PACE) provider in the United States is reportedly getting another major investor. On Friday, reports surfaced that London-based private equity firm Apax Partners plans to buy a stake in InnovAge from fellow PE giant Welsh, Carson, Anderson & Stowe (WCAS). Apax Partners’ deal for a piece […]
The Pennant Group Inc. (Nasdaq: PNTG) announced Wednesday that it has purchased two home health agencies with multiple locations throughout southeastern Idaho and northern Utah. The financial terms of the deal were not disclosed. The Pennant Group came to fruition last year, a spinoff of the Ensign Group (Nasdaq: ENSG). Before the newly announced deal, […]
Across the U.S., hospital systems are bleeding money. The coronavirus is largely to blame, with most of the country suspending elective procedures and non-essential hospital services for the majority of spring. The American Hospital Association (AHA), for example, estimates that COVID-19’s financial impact to hospitals and health systems over the four-month period from March 1 […]
Home health care is beginning to manage the COVID-19 crisis at a more sustainable pace, and early signs have suggested that the Patient-Driven Groupings Model (PDGM) may not have been the boogeyman that some providers suspected it was. But the rosy outlook of the first six months of PDGM may be premature. Federal relief funding […]
No stranger to joint venture agreements, LHC Group Inc. (Nasdaq: LHCG) has entered into a new deal with Orlando Health. The JV agreement will focus on strengthening Orlando Health’s home health capabilities, along with its home- and community-based services, in the state of Florida. Announced on Wednesday, LHC Group’s newest JV agreement marks its third […]
Nearly every industry in the country is feeling the impact of the COVID-19 virus in one way or another. And the home-based care space is far from immune. However, the in-home care M&A landscape remains relatively strong. While deal activity will undoubtedly slow as a result of the coronavirus, the future looks bright, according to […]
An international private equity fund that aims to make a social impact with its investments is now tying itself to home health care in the U.S. London-based Bridges Fund Management was started overseas in 2002. Now, its U.S. Sustainable Growth Fund is making its mark domestically as a lower- to middle-market private equity fund that […]
The coronavirus may have pressed pause on the home health industry consolidation some saw coming in 2020, but there’s a decent chance the stoppage will prove short-lived. Currently, the home health market is made up of thousands of individual agencies, many of which are mom-and-pop shops with annual revenues around $1.5 million or less. The […]
In the first quarter of 2020, LHC Group Inc. (Nasdaq: LHCG) boasted organic growth of 7.1% in home health admissions. That metric becomes more impressive when one considers the fact that the coronavirus drastically slowed home health admissions industry wide starting in mid-March. Before the virus took hold, LHC Group enjoyed even better organic home […]