Published May 2023
The home health, hospice, and personal care space continues to lead the healthcare services market for M&A activity. With a record-breaking year in 2021 for deal flow, home health and hospice continues to out pace the broader market. While there was a decrease in transaction volume in 2022, total transaction value increased by nearly $4 billion, driven by several large-cap healthcare and tech companies entering the space.
Since 2019 there have been over 400 reported transactions. Favorable macro level tailwinds such as the aging population, the desire for more cost-effective care setting, and favorable reimbursement trends continue to propel the sector. In addition, macro economic changes such as interest rates and volatile market conditions are driving investors towards recession resistant areas like healthcare services.
The home health sector continues to grow at a CAGR of 7.2%. Experts believe the market will reach a projected value of $152.19 billion by 2029. In 2021 the total market value reported was $88.5 billion. Rate increases from CMS and the effects of the Patient Driven Grouping Model have created a favorable market for investor interest and increased potential deal flow.
The hospice market has also grown dramatically over the past decade as private equity has flocked to the sector. The market is currently growing at a CAGR of 8.2% and valued at $32.1 billion as of 2021.
In this white paper, Provident Healthcare Partners (“Provident”), examines the consolidation trends and competitive landscape within the home health, hospice, and personal care space. We will also cover key topics such as valuation expectations, partnership considerations, and the evolving reimbursement landscape.
- Understanding the Current Macro Environment
- Reimbursement Trends
- The Consolidation Wave in Home Health, Hospice, & Personal Care
- Hospice Consolidation
- Home Health Consolidation
- Personal Care Consolidation
- Private Pay Consolidation
- Expansion Across Continuum of Care
- Value Based Care Initiatives
- Partnership Considerations
- Key Consolidators