Private equity investment remains down in health care services. But the firms active in home-based care will likely have a major impact on the industry in the near future. The decisions those firms make – while entering or exiting – will have a lasting impact. In the second quarter, there were 164 PE deals across […]
Pitchbook
In connection with its acquisition of For Papa’s Sake Home Care (FPS), Havencrest Capital Management has formed its own home care platform. The new company will be dubbed “Avid Health at Home,” and Havencrest Operating Partner Jen Lentz will be the CEO. “We are very excited about the creation of Avid as well as our […]
June is upon us. The year is nearly halfway gone, and since the turn of the calendar, there have been a lot of learnings on where the home health industry currently sits — and where it may be headed. But everything will be reset in the next month when the Centers for Medicare & Medicaid […]
Dealmaking experts predicted health care M&A activity would drop in 2023 due to a number of headwinds. The first quarter of the year proved them right – and then some. Overall, annualized transaction activity for 2023 is down 32% compared to 2022 levels. Home health, home care and hospice M&A activity was down on a […]
While some of the other subsectors already have more clarity on what their CY2024 may look like, home health operators are still operating in the dark. The home health proposed payment rule is still likely a month away, and the final rule likely more than four months out. It seems most are expecting the worse […]
The home health care workforce shortage is restricting PE dealmaking, experts suggest. That’s especially been the case over the last year and a half, as micro and macro economic headwinds have also affected both agencies and PE firms. “When you think about it, it takes the margin on a business that was already feeling some […]
While home-based care is where health care is going, it’s also very behind from a technology standpoint. Even leaders at top-performing home health and home care agencies admit that their respective spaces are not where they should be in that area. It makes sense, then, that private equity and venture capital firms are intrigued by […]
Last year, home-based care M&A was up by dollar amount and down by volume. CVS Health’s (NYSE: CVS) $8 billion pending deal for Signify Health (NYSE: SGFY) and UnitedHealth Group’s (NYSE: UNH) pending deal for LHC Group Inc. (Nasdaq: LHCG) made sure of the former. While 2021 was an outlier year from an M&A perspective, […]
Rising staffing costs and unfavorable reimbursement dynamics in the home-based care space have created a seller-buyer pricing misalignment that has had ill effects on mergers and acquisitions. After a record-breaking 2021 for M&A in home-based care, the space has seen a sharp decline in deal activity. Although many experts are mostly optimistic about the long-term […]