One of the most fascinating questions surrounding the Centers for Medicare & Medicaid Services’ (CMS) home health proposed payment rule is what effect it will have on M&A. I’ve heard that it will stymie acquisitions. I’ve heard it will drive them. Both make sense, too. Some companies may not be allocating more resources and money […]
Mertz Taggart
With the uncertainty surrounding the U.S. Centers for Medicare & Medicaid Services’ (CMS) new proposed payment rule, buyers and sellers in the home health industry will be proceeding with caution. Home health insiders told Home Health Care News that while the proposed rule is sure to create some pause in overall activity, it shouldn’t be […]
After multiple years of record-breaking M&A activity, home health consolidators are now starting to show an increased interest in organic growth. While the approach to growing a home health business through building existing infrastructure may take longer, the environment in 2022 is more friendly to organic growth than it was during the COVID-19 pandemic. “We […]
Following a record-breaking year for home care, home health and hospice M&A, deal volume took a dive in the first quarter of 2022. In fact, it was record-breaking on the opposite side of the spectrum. Despite the low figures, M&A experts are still optimistic that the number of deals will rebound. A total of 26 […]
The pace hasn’t been as aggressive as some expected, but the home health industry has been undergoing a wave of consolidation over the past several years, with the number of freestanding agencies decreasing annually since at least 2015. While consolidation can certainly bring added stresses for existing operators, experts in the mergers-and-acquisitions field note there […]
Pushed by the White House, federal watchdogs have a new directive – cracking down on private equity in health care. While they’ll largely be targeting nursing homes and PE investment as part of a recently unveiled senior care initiative from the Biden administration, there will likely be ripple effects in the home-based care space. In […]
Earlier this week, Axios reported that Humana Inc. (NYSE: HUM) is gearing up for a sale of Kindred at Home’s hospice business and seeking a multiple of 12 times EBITDA. Two days later, Encompass Health Corporation (NYSE: EHC) reaffirmed its plan to spin off its home health and hospice segment into a new publicly traded […]
Dealmaking in 2021 for home-based care had its highs and lows. On an annual basis, home health, home care and hospice operators saw an overall spike in M&A activity, according to the latest update from advisory firm Mertz Taggart. In total, there were at least 166 home health, home care and hospice deals in 2021, […]
This article is brought to you by Mertz Taggart. The article is based on an interview that took place during a live Q&A session with Cory Mertz and Bruce Vanderlaan, Managing Directors at Mertz Taggart, and Jeff Wiberg, CEO of Family Resource Home Care. The panel took place at the Home Care Conference in Chicago […]
The home health market is made up of about 9,900 agencies, with businesses ranging in size, service mix and structure. The publicly traded home health companies, in particular, offer a snapshot of the industry in the present – and often a sneak peek at what’s to come. While the names of the publicly traded home […]