Stephen M. Monroe, Partner
Phone: (800) 248-1668
Fax: (203) 846-8300
Record Number of Home Health Care Mergers and Acquisitions According to Irving Levin Associates, Inc.
(August 11, 1997 – New Canaan, Connecticut) – The home health care industry has been one of the fastest growing segments of the health care market, and this growth has resulted in a record level of consolidation activity, according to The Home Health Care Acquisition Report, Second Edition. For the 12-month period ended June 30, 1997, there were 139 publicly announced mergers and acquisitions of home health care companies, representing an increase of 24% over the previous 12-month period record of 112 transactions.
“Despite the investigations into alleged fraudulent billing practices, the acquisition market for home health care companies remains robust. In fact, the past two quarters represent two of the three most active quarters over the past four years,” according to Stephen M. Monroe, a partner at Irving Levin Associates, Inc., a leading publisher of health care industry financial research.
In terms of number of transactions, the acquisition market was again dominated by American HomePatient, which accounted for 27 of the announced mergers and acquisitions. Other active buyers in the 12-month period ended June 30, 1997 included Option Care (10 deals), Home Health Corporation of America (nine deals), Integrated Health Services (eight deals) and HealthCor Holdings (eight deals).
“The market continues to be fragmented, as evidenced by the fact that more than 50% of the companies sold had revenues of less than $5 million. Only five of the targeted companies had annualized revenues of $25 million or more,” stated Mr. Monroe.
A record number of publicly traded home health care companies has been the primary catalyst for the consolidating market in home health care. “But the current investigations into Medicare billing practices could result in a new round of acquisitions as some fast-growing companies decide to shed some of their operations. Columbia/HCA Health Care, one of the largest home health care companies in the country, is a case in point,” stated Mr. Monroe.
The Home Health Care Acquisition Report, which is updated annually, is approximately 90 pages. The Report combines a three-year trend analysis of the acquisition market with hard to find information on all of the publicly announced transactions that occurred during the 12 months ended June 30, 1997. Irving Levin Associates is the premier firm tracking merger and acquisition activity in the health care and senior housing markets. To purchase The Home Health Care Acquisition Report, please call (800) 248-1668.
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