With the unknown changes in reimbursement starting in 2020 from the Patient-Driven Groupings Model, buyers are showing caution when it comes to home health acquisitions. Home Health and Hospice Managing Director Mark Kulik spoke with Home Health Care News predicting there will be a drop in M&A activity, followed by a potential spike in 2021.
“[PDGM] definitely is causing buyers to tap their brakes. If you’re a large strategic buyer, or even if you’re on the private equity side, you still have to maintain growth goals. I think we’ll see a strong remainder of the year for hospice, private duty and even Medicaid private duty.”