Home Health And Hospice M&A Activity Remains Slow In Q1: 2017, According to Data from HealthCareMandA.com

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Home health and hospice acquisition activity remained slow in the first quarter of 2017, rising slightly from a low point in the fourth quarter of 2016, according to acquisition data from HealthCareMandA.com.

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Even though there has been an increased focus on increasing home and community-based supports and services, buyers remain concerned about changes in payment methodology

After hitting a low for the year in the fourth quarter of 2016 with just 12 publicly announced home health and hospice acquisitions, acquisition activity remained slow with a small increase to 13 announced acquisitions in the first quarter of 2017, according to new data from HealthCareMandA.com. The first quarter’s transactions, however, represented a 38% decline in announced acquisitions from the 27 deals in the first quarter of 2016. Most acquisitions in the home health and hospice market are small, and in the first quarter there was just one acquisition with a disclosed price, which was less than $1.0 million.

Jordan Health Services was the most active buyer in the first quarter, announcing three acquisitions during the quarter. Jordan Health is a portfolio company of Palladium Equity Partners. Hospitals or health systems accounted for three of the acquisitions in the first quarter, while private equity firms also announced three acquisitions. “Even though there has been an increased focus on increasing home and community-based supports and services, buyers remain concerned about changes in payment methodology,” stated Lisa Phillips, editor of The Health Care M&A Report, which publishes the data. “Everyone knows that the home health and hospice business will grow. The problem is figuring out how to pay for it,” continued Phillips.

All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the HealthCareMandA.com investment research source. For information, or to order the report, call 800-248-1668. Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the healthcare and senior housing markets.

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Kate Wentworth
Irving Levin Associates
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