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Home Health and Hospice Merger and Acquisition Rose 12% in 2016

Posted on Thursday, March 23, 2017 2:12 PM

A variety of sectors in the health care services industry experienced a busy year in 2016, along with the home health and hospice sector. According to the 23rd edition of Irving Levin Associates’ Health Care Services Acquisition Report, home health and hospice deal activity rose 12% year-over-year in 2016.

The report said that deal volume for all of the health care industry’s services sectors increased 1% year-over-year, from 935 transactions in 2015 to 942 transactions. However, the dollar value of those transactions dropped 49% from $140 billion in 2015 to $72 billion in 2016.

In 2016, each sector went through different levels of deal activity. Merger and acquisition (M&A) activity decreased 6% year-over-year in the long-term care sector, but rose 12% year-over-year in the home health and hospice sector and 21% in the rehabilitation sector, the report notes. In addition, deal activity fell 53% year-over-year in the managed care sector.

“The continued shift to value-based outcomes and reimbursements benefitted most post-acute sectors in 2016,” Lisa E. Phillips, the report’s editor, said in a press release. “The slow-down in the long-term care sector is the inevitable result of a bull market finally pausing for breath.”

Sectors that were directly impacted by the passage of the Affordable Care Act (ACA) will be directly impacted by its replacement, Phillips added.

“We’re seeing dramatic declines in M&A in the managed care and hospital sectors, early in 2017,” she said. “Depending on the final legislation, more sectors could be impacted.”

Corridor offers a variety of services to help you navigate M&A – including:
• Due Diligence
• Evaluation and Selection of Partnering Options
• Acquisition / Buyer Identification
• Business Valuation
• Transition and Integration Planning and Implementation
• Corporate Compliance Program Development

Call Corridor today for help with M&A. 1-866-263-3795

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