Q2 2025 Homecare, Hospice & DME Update
Q2 2025 Homecare, Hospice & DME Update
DME Subsector Highlight:
The DME sector has demonstrated steady M&A activity throughout Q2, highlighted by Sumitomo’s acquisition of ActivStyle from AdaptHealth, coupled with its follow-on investment in Quest Health Solutions. Strategic buyers continue to seek high-caliber add-ons that are positioned to diversify product mix towards high-growth categories, while building scale and capturing expense and revenue synergies.
The re-introduction of Medicare’s DME competitive bidding program has clouded the near-term outlook for DME M&A. Providers and investors are closely monitoring developments following CMS’ proposed rule published in late June to better understand which product categories will fall into this program and the subsequent impact on reimbursement.
Despite this news, Provident anticipates premium assets to continue to attract interest from investors while the industry navigates this latest competitive bidding announcement.
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