Home Health and Hospice M&A Activity Jumps in Q1: 2016, According to Acquisition Data from Irving Levin Associates, Inc.
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NORWALK, CT – May 10, 2016 – After a relatively slow year in 2015, the home health and hospice M&A market picked up the pace in the first quarter of 2016. There were 18 publicly announced transactions in the first quarter, representing a 50% increase over the fourth quarter of 2015 and a smaller 6% increase over the year-ago quarter. The dollars spent on home health and hospice mergers and acquisitions where the price was disclosed also increased, jumping 69% from the fourth quarter of 2015 to $183.5 million and increasing by a smaller 32% from the year-ago quarter. Most transactions are small and many do not have disclosed prices, which makes comparing the periods difficult.
The largest transaction with a disclosed price in the first quarter of 2016 was the purchase of Genesis Healthcare’s home health business for $84 million by Compassus, a private Tennessee-based company. This was followed by acquisitions of $37 million by Almost Family, $28 million by Amedysis, and $18 million by Kindred Healthcare. Kindred announced three separate home health and hospice acquisitions in the quarter. “Post-acute providers continue to seek home health and hospice businesses to round out their networks in local markets, and the large, publicly traded home health and hospice providers remain active in the market,” stated Lisa Phillips, Editor of the Health Care M&A Report.
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information 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.