Q1 2026 Homecare, Hospice & DME Update
Subsector Spotlight: Durable Medical Equipment
DME transaction activity maintained consistent volume in Q1, with deal flow concentrated in sub-verticals that are insulated from the looming impact of competitive bidding. Palladium’s acquisition of DME Express, a hospice DME provider with a B2B revenue model and no direct reimbursement exposure, and Gauge Capital’s investment in Reliable Medical Supply, focused on complex rehab, are direct examples of this shift.
Further, M&A activity has been impacted by the six-month CMS moratorium announced in late February, which increases restrictions on certain deal structures and NPI transfers. While this has created temporary M&A uncertainty, Provident does not anticipate a long-term impact on investor interest in the space, considering the six-month timeframe and the primary goal of curbing fraud, waste, and abuse, rather than a goal to slow deal activity.
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