“To stay successful and really be effective at managing your revenue cycle management, it’s getting more sophisticated than it used to be for hospice providers. There’s going to be various iterations of programs coming up and policies that are going to require different payers, and you’ve got to be able to partner with those different payers,” Kulik told Hospice News. “That is something that’s going to be new for hospice providers — that sophistication level.”
"Tomorrow Health’s infusion of cash is indicative of rising investor interest in the home-based care space and associated industries like DME. Private equity hospice transactions rose nearly 25% from 2011 to 2020, according to a report from The Braff Group."
“A lot of people in the merger and acquisition world, across the board, believe that 2021 might be a record year in terms of transactions,” Braff said. “It could, in fact, be a record year in autism services as well.”
Despite recent hospice and home-based care acquisitions involving health systems, such transactions are unlikely to become a common practice during 2021 and 2022. However, health systems are taking a closer look at companies that provide non-medical assistance to help seniors age in place.
Rising interest from special-purpose acquisition companies (SPACs) could make competition in an already active hospice M&A market more fierce in coming years.
Private equity interest in the hospice sector has been gaining momentum in recent years, raising the stakes in hospice deals and stepping up competition for acquisition targets.
Over the last few months, Addus HomeCare Corporation (Nasdaq: ADUS) has had to deal with a challenging legislative environment and significant COVID-19 surges that have affected clients and caregivers alike.
HCA Healthcare (NYSE: HCA) is expected pursue speedy growth for the hospice and home health business the company is set to acquire from Brookdale Senior Living (NYSE: BKD).
Private equity firm Webster Equity Partners is considering the sale of Bristol Hospice, which operates 35 locations across 10 states, PE Hub has reported. Bristol’s EBITDA is in excess of $70 million, indicating that the company is about seven times larger than when Webster first acquired it in 2017...
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...