Stephen M. Monroe
Fax: 203-846-8300

NORWALK, CT – October 20, 2015 – After a sharp dip in home health and hospice acquisitions in the second quarter, M&A activity picked up in the third quarter with a 50% increase in announced transactions. However, the nine acquisitions in the third quarter were still significantly less than the 15 transactions in the year-ago quarter in 2014.  Most transactions continue to be small with no acquisition price disclosed. For those with disclosed prices in the third quarter of 2015, the total dollar value was $241.9 million, which was less than the year-ago quarter when the dollar total was $410 million. No prices were disclosed in the second quarter of 2015. Only one home healthcare provider made it into the top five acquisitions of the past four quarters. That was LHC Group’s acquisition of Halcyon Hospice in the third quarter. The other four largest transactions were announced by various post-acute providers such as Kindred Healthcare, HealthSouth and Extendicare.  “More post-acute providers are beefing up their home health and hospice businesses in order to compete in the future of healthcare delivery and to get better control over post-acute outcomes, which is how they may be paid,” stated Steve Monroe, a partner at Irving Levin Associates.  “It will be increasingly difficult for small home health and hospice providers to compete in this market, which will drive them into acquisitions with consolidators,” commented Lisa Phillips, Editor of the Health Care M&A Report. The hospice business has been growing quickly, as doctors and families become more comfortable with end-of-life care and all its implications, and hospice care will see more growth.    
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 more 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 health care and senior housing markets.
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