PDGM Changing Home Health M&A Landscape

With a number of upcoming regulatory changes sure to shake up the home health industry — including the Patient-Driven Groupings Model (PDGM), the Review Choice Demonstration (RCD) and a phaseout of Requests for Anticipated Payments (RAPs) — a provider’s future isn’t exactly clear. As a result, questions surrounding how and when to best approach mergers-and-acquisitions […]

Private Equity Buyers Press Pause on Home Health Plans

In a change of pace compared to recent trends, private equity buyers appear to be shying away from home health purchases. There were at least 13 transactions for Medicare-certified home health assets in 2019’s third quarter, with many of those purchases coming from the industry’s big publicly traded companies, according to the latest quarterly M&A […]

Hospice Continues to Trump Home Health Care on M&A Front

Frisco, Texas-based Addus HomeCare Corporation (Nasdaq: Adus) has signed a definitive agreement to purchase Hospice Partners of America LLC for $130 million cash, the multi-state home care services provider announced Monday. The move is yet another example of how hospice is outpacing home health care on the M&A front. Frisco, Texas-based Addus is primarily a […]

Lack of Scalable Home Care Assets Means Buyers May Have to Get Creative

These days, landing a large personal care services acquisition can often feel like finding a needle in a haystack. As a result, potential buyers may have to become increasingly more creative to grow their home care footprint, M&A experts say. The recent agreement between Amedisys Inc. (Nasdaq: AMED) and ClearCare Inc. — which allows Baton […]

Home Health Industry Likely Headed for M&A Rollercoaster

If there’s one thing home health care providers can agree on when it comes to the Patient-Driven Groupings Model (PDGM), it’s that the new model is shrouded in uncertainty. Despite attempting to predict expected reimbursement changes and adapting operations accordingly, agencies won’t know exactly how PDGM will affect them until well after its Jan. 1 […]

[UPDATED] AccentCare to be Acquired by PE Giant Advent International

Global private equity firm Advent International has entered a definitive agreement to acquire AccentCare from its current PE-backer, Oak Hill Capital Partners. Financial terms were not disclosed. The acquisition is one of six home health PE deals announced so far this year, with fewer industry deals happening at a slower pace than in years past. […]

CMS Lifts Moratoria on Home Health After 5 Years

The long-standing moratoria on new Medicare home health agencies is no longer in effect anywhere in the U.S. The Centers for Medicare & Medicaid Services (CMS) allowed the temporary ban to expire on Jan. 30, a move that will likely improve patient access to home-based care in related markets, experts say. CMS initially implemented a […]

PE-Owned Hospice Giant Compassus Reportedly Considering a Sale

Private equity-backed Compassus could soon be up for sale, according to a Jan. 8 report from PE Hub. PE Hub cited “three people familiar with the matter” for its article, which claims Compassus has tapped an advisor from Jefferies Financial Group to help the company prepare for an upcoming sales process. Jefferies had no comment […]

Home Health, Hospice Experiencing Unprecedented M&A Action

Thanks to heightened interest from private equity buyers and companies’ efforts to diversify business operations, 2018 has seen an acceleration in the number and size of home health, hospice and personal care transactions. The hot market should continue going forward, although the new home health payment model and sky-high valuations raise some questions about what […]