Certificate of Need Markets Can Mean Big Business for Home Health Buyers, But Opportunities Are Growing Scarce

Home health mergers and acquisitions got off to a slow start in 2020, then picked up considerably by year’s end. Home health insiders are now predicting a big year for M&A activity in 2021, especially after COVID-19 relief vanishes and economic realities become clearer. The Patient-Driven Groupings Model (PDGM) will likewise play a part in […]

‘The Clock Is Ticking’: What Addus’ $192M Hospice Deal Means for Home Health M&A

On last week’s Q3 earnings call, Addus HomeCare Corporation (Nasdaq: ADUS) effectively declared that its “short pause” on M&A activity was officially over. On Wednesday, the company put its money where its mouth is. The Frisco, Texas-based provider announced it has signed an agreement to acquire Queen City Hospice and its affiliate, Miracle City Hospice, […]

M&A Experts: COVID-19 Has ‘Camouflaged the Initial Impact of PDGM’

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 […]

Home Health, Home Care M&A Activity Is Business As Usual — For Now

Amid the ongoing COVID-19 pandemic, concern has started to bubble up to the surface over a potential disruption to in-home care M&A activity. For now, experts say it’s business as usual. But coronavirus could have some negative impact in the long-run. In fact, on Tuesday, S&P Global economists predicted a global recession for 2020, forecasting […]

With RAP Phaseout Finalized, Writing Is on the Wall for Small Home Health Agencies

When the Centers for Medicare & Medicaid Services (CMS) released its final payment rule last week, the agency all but guaranteed a wave of home health industry consolidation in 2020. That guarantee comes despite CMS’s move to nearly halve the 8.01% behavioral adjustment included in the Patient-Driven Groupings Model (PDGM). But in addition to reducing […]

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 […]

Home Health M&A Activity Expected to Climb Following PDGM, Bankruptcies

Cash flow interruptions and operational changes caused by the Patient-Driven Groupings Model (PDGM) may lead to a spike in the number of home health providers in the U.S. filing for bankruptcy, some experts predict. If the forecast is accurate, that may also mean more initial M&A action as well. “I agree with the premise that […]

Workforce, Financial Challenges Prompt Hospitals to Outsource Home Health Care

As more types of care move into residential settings, an increasing number of hospitals and health systems are turning to outside home health agencies to either replace, reinforce or manage their own operations. Workforce challenges and financial struggles are often the catalysts behind their decisions to outsource home health offerings, M&A experts say. “It’s a […]

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 […]