Home Health & Hospice M&A Activity Slows Down in Q:2 2015
|FOR IMMEDIATE RELEASE||
Stephen M. Monroe, Partner
Lisa Phillips, Editor
NORWALK, CT – July 22, 2015 – The home health and hospice acquisition market appeared to take a breather in the second quarter of 2015. There were just five publicly announced transactions in the second quarter, down from 16 in both the first quarter of this year and the second quarter of 2014. None of the transactions in the second quarter of 2015 came with a price, which indicates that the acquisitions that were announced were most likely small. “With the push in Washington, D.C. for more home and community-based care options, home health care will undoubtedly grow as a business. The problem is that Medicare reimbursement has not helped with cash flow, which can cause a slowdown in M&A activity,” stated Steve Monroe, a partner at Irving Levin Associates. In addition, “there are many home health care agencies that are sold as part of a larger transaction, such as the sale of a hospital or post-acute care provider, that do not get into the numbers as stand-alone deals,” commented Lisa Phillips, Editor of the Health Care M&A Report. The hospice business has been growing quickly, and as doctors and families become more comfortable with end-of-life care and all its implications, hospice care will continue to see more growth.