Home Health and Hospice M&A Activity Jumped in Q3:2020, According to HealthcareMandA.com

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Description: Home health and hospice deals increased by 120% in the third quarter compared with the previous quarter, according to acquisition data from HealthCareMandA.com.

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Unlike most healthcare services sectors dealing with the COVID-19 pandemic, home health and hospice agencies are bouncing back to nearly pre-Covid-19 activity levels.

Deal volume in the home health and hospice sector accelerated in the third quarter of 2020, up 120% with 22 publicly announced transactions, compared with 10 acquisitions in the second quarter of 2020, according to data from HealthCareMandA.com and Deal Search Online. Compared with the same quarter in 2019, M&A activity increased by 10%.

The largest transaction in the third quarter was The Providence Service Corporation’s purchase of Simplura Health Group from One Equity Partners, for $575 million. Simplura operates a large network of home health and personal care agencies across Connecticut, Florida, Massachusetts, New Jersey, New York, Pennsylvania and West Virginia. It employs approximately 14,000 caregivers that provide over 20 million hours of non-medical personal care annually to primarily Medicaid patient populations, including seniors and disabled adults.

Addus HomeCare Corporation also announced a new transaction, acquiring A Plus Health Care, Inc. for $122 million. The acquisition will strengthen Addus' presence in the Montana home health market.

“Unlike most healthcare services sectors dealing with the coronavirus pandemic, home health care and hospice agencies are bouncing back to nearly pre-Covid-19 levels of activity,” said Lisa E. Phillips, editor of The Health Care M&A Report, which publishes the data. “Analysts we’ve talked to expected to see a resurgence of deals in the sector beginning in the third quarter, and they were right. There’s good momentum going into the fourth quarter, too.”

In the third quarter, private equity firms and their sponsored companies remained active buyers, accounting for 43% of all deal activity. Caring People, a portfolio company of Silver Oak Services Partners, added providers in Connecticut, New York and Texas. Bristol Hospice, a portfolio company of Webster Equity Partners, announced two transactions, acquiring California-based Remita Health and VNA California, a nonprofit hospice and home health provider located in Southern California. Bristol Hospice partnered with HealthSure Management Services in that transaction.

All quarterly results are published in The Health Care M&A Report, which is part of the HealthCareMandA.com investment research source. For sector-specific research and analysis, please see The Home Health and Hospice Acquisition Report 2019. 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 headquarters in New Canaan, Connecticut. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.

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