At Home Healthcare, a provider of home healthcare services throughout Texas, has been acquired by Family Home Health Services, a portfolio company of The Edgewater Funds.
Q4-2019 Home Health & Hospice Update – With uncertainty looming around the upcoming Patient-Driven Groupings Model (PDGM), strategic acquirers and investors have focused their attention towards the hospice space in the fourth quarter of 2019 resulting in robust transaction volume. Due to increased competition and a shrinking number of platform opportunities available, Provident has seen valuations drastically increase in the hospice space and expects multiples to remain high throughout 2020.
Q3-2019 Home Health & Hospice Update– Multiples are at all time highs for the home health and hospice industry, driven by the value proposition that in-home care provides to the overall health care system. Evident by Addus HomeCare’s acquisition of Hospice Partners of America, providers are willing to pay premium valuations to expand services offerings in a growing attempt to capture the entire continuum of care.
Market Trends and M&A in Home Health / Hospice– The home health and hospice market remains one of the most fragmented sectors within healthcare services with many independent players holding significant market share in their respective geographies. Given the wide breadth of smaller companies, demand for home-based care, and the non capital-intensive nature of the business, there is significant opportunity in the space for both private equity and strategic-led consolidation.
Q1-2019 Home Health & Hospice Update– Provident expects continued M&A opportunities will arise from smaller agencies not having the operational capacity or resources to adjust to the new PDGM payment framework. Furthermore, larger providers such as Addus, Elara Caring, Humana, and LHC Group will continue to utilize their infrastructure to drive further consolidation in the industry.
Private Equity Interest in Hospice Acquisition Expected to Rise in 2019 – As more private equity firms enter the post-acute health care arena, hospice organizations are increasingly pursuing mergers and acquisitions as a growth strategy, according to the recently released 4th quarter 2018 Home Health & Hospice Update from Provident Healthcare Partners.