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...
Find out what Mark A. Kulik, MAMI, Managing Director at BRAFF, told Home Health Care News regarding trends and themes in health care services.
"Looking ahead to 2021, home health will start off slow but pick up greater deal activity as the year unfolds, especially for mid- and larger-size agencies." Mark A. Kulik, MAMI
“It’s a definite trend,” Mark Kulik, managing director at mergers-and-acquisitions advisory firm The Braff Group, previously told Home Health Care News. “The theme is [that] it’s hard to be great at everything. Your core competency as a hospital is acute care. Home care is very different.”
Mergers and acquisitions activity keeps increasing for hospice businesses due to the availability of capital and demographic growth.