Q3 2025 Homecare, Hospice & DME Update
Subsector Spotlight: Hospice
Strategic divestitures continued across the home health and hospice sector, with regional consolidators maintaining disciplined acquisition strategies focused on regional density and accretive growth driven by localized cost synergies. In parallel, larger multi-state platforms have increasingly explored divestitures to multiple buyers to maximize value, as demonstrated by the Dorilton-backed Traditions transaction and other processes currently in market. Ongoing private equity interest continues to drive secondary and tertiary recapitalizations, highlighted by Bain Capital Double Impact’s partnership with Legacy Hospice.
On the regulatory front, Centers for Medicare & Medicaid Services finalized the Medicare home health payment rule, estimating a 1.3% aggregate reduction in payments, materially less severe than the 6.4% originally proposed.
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