Home Health and Hospice Sector Hit by Headwinds

Home Health and Hospice Sector Hit by Headwinds

The Home Health & Hospice sector has experienced a few headwinds in 2017. Besides the ongoing labor shortage, reimbursement levels would be severely impacted by the passage of the Senate Republicans’ Better Care Reconciliation Act, which curtails federal spending on Medicaid beginning in 2020. Little surprise, then, that deal volume faded in the second quarter, to nine transactions. Deal volume in Q2:17 fell to 10 transactions, which represent 18% of the 55 deals announced in the past 12 months. Compared with the same period a year earlier, deal volume was down 31%. Source: HealthCareMandA.com, July 2017 None of the deals announced disclosed financial terms. Dollars Spent on Home... Read More »

ResCare Switches to ‘Home Health Lite’

ResCare Inc., a portfolio company of Onex Corp. (TSE: ONEX), is changing the direction of its home health segment. ResCare, the nation’s largest private provider of services to people with disabilities, has been divesting its home health assets since 2014. A recent 10-K filing by Onex Corp. stated that ResCare was exiting the skilled line of business in the home care segment and transitioning to home health services without the skilled nursing. The exit resulted in a 2% decrease in revenue between 2015 and 2016, which was substantially offset by acquisitions within the home care and residential services segments, according to the filing. On April 10, 2017, Active Day/Senior Care... Read More »