Activity in the Home Health & Hospice M&A market increased in the second quarter of 2023, with 24 publicly announced transactions, according to data captured by LevinPro HC.
NEW CANAAN, Conn., July 14, 2023 /PRNewswire-PRWeb/ -- Merger and acquisition activity in the Home Health & Hospice (HH&H) sector increased by 20% in Q2:23, according to data captured in LevinPro HC. Despite this growth, the second quarter of 2023 also had a 14% decrease in activity compared with Q2:22, when 28 HH&H acquisitions were announced.
The most active subsector in the HH&H space was home health with 12 deals, followed by home hospice and palliative care and durable medical equipment/respiratory home care each with five deals and multi-service with two deals. Additionally, private equity firms and/or their portfolio companies represented 33% of the buyers in the HH&H M&A market during Q2:23.
"We saw a significant uptick in deal activity for home health agencies and providers" said Dylan Sammut, Editor of Healthcare at Irving Levin Associates. "Demographic tailwinds have drawn interest from a wide range of buyers, from health insurance giants to major corporations. It has created a very active market."
Announced spending increased dramatically in the first quarter from $395 million in Q1:23 to $3.87 billion in Q2:23. The largest HH&H deal by disclosed price was Optum's acquisition of Amedisys, Inc., a provider of home health care, provisional medical staffing and primary care in rural areas and outpatient surgery services, for $101 per share, valuing Amedisys, Inc. at approximately $3.7 billion.
The two busiest acquirers in the HH&H market during Q2:23 were Reliable Medical Supply and The Pennant Group, Inc., both with two deals. While Reliable Medical is interested in acquiring companies in the durable medical equipment space, The Pennant Group is more focused on multi-service and home health providers.
"CMS is considering a decrease in Medicare reimbursement for home health services in 2024," continued Sammut. "That change could slow the industry in the future, but for now, there's plenty of opportunity for investors."
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of LevinPro HC. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.
Media Contact
Dylan Sammut, Irving Levin Associates, 203-846-6800, sammut@levinassociates.com
SOURCE Irving Levin Associates
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