When it comes to acquiring home health care agencies, buyers can afford to be picky. There are more than 10,000 home health providers nationwide, but typically, only a few dozen deals close per year. Between 2011 and 2014, the market saw an annual average of 80 transactions, according to data from the investment banking company […]
Category: M&A
Since the worst stretch of the public health emergency, LHC Group Inc. (Nasdaq: LHCG) has seen a decrease in weekly COVID-related missed visits and improved its average daily census. It has also added thousands of new physician referral sources, a win for the company considering many institutional sources are at a standstill. Those are just […]
The COVID-19 emergency has slowed mergers-and-acquisitions activity in the home-based care space, largely due to travel restrictions, general sector uncertainty and the shifting priorities of top leadership. However, interest in home-based care deals remains robust and valuations remain high. In fact, M&A experts expect deal activity to pick up dramatically come fall 2020 and beyond. […]
Health and well-being company Humana Inc. (NYSE: HUM) has spent the past few years adding to its health care services portfolio while aggressively investing around a home-based care strategy. The Louisville, Kentucky-based company has now revealed its latest step in that direction. On Wednesday, Humana announced a wide-ranging strategic partnership with Heal, the in-home primary […]
Despite the economic turmoil of the ongoing COVID-19 emergency, home health and hospice multiples hit record-breaking numbers in the first half of 2020. Specifically, multiples reached 29 times in the early part of this year, beating their previous high of 26 times in 2019, according to a recent report by PricewaterhouseCoopers’ (PwC) Health Research Institute. […]
Increasingly, home health providers have worked to expand their service offerings to care for patients on a more longitudinal basis. Mergers-and-acquisitions activity in the second quarter of 2020 reflected that trend. Specifically, Q2 saw a number of deals that consisted of home health care and hospice pairings, according to the latest monthly M&A report from […]
Private equity-backed health care software company WellSky has a new investor and a new capital structure, the company announced Monday. TPG Capital — the PE platform that currently owns WellSky — has entered into a definitive agreement to add private equity firm Leonard Green & Partners LP (LGP) as a capital partner. As part of […]
Bayada Home Health Care on Thursday announced plans to form a new joint venture with Universal Health Services Inc. (NYSE: UHS), one of the largest providers of hospital and health care services in the country. Broadly, the goal of the newly announced JV is to meet the increased future demand for in-home care across both […]
Smaller home-based care agencies could be forced to close their doors as a result of the coronavirus, creating merger-and-acquisition opportunities for larger providers in the space. However, the Paycheck Protection Program (PPP) adds a new layer of complexity to some of those M&A opportunities, specifically if an acquisition target is the recipient of a PPP […]
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, […]