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:, July 2017

None of the deals announced disclosed financial terms.

Dollars Spent on Home Health & Hospice Mergers & Acquisitions, by Quarter


Five publicly traded companies announced deals in this sector in Q2:17. Addus HomeCare (NASDAQ: ADUS) acquired Options Home Care, based in Clovis, New Mexico, a subsidiary of HB Management Group. The price was not disclosed, but the target’s annual revenues were more than $20 million.

Amedisys, Inc. (NASDAQ: AMED) moved north from its Baton Rouge, Louisiana base to acquire East Tennessee Personal Care Service in Knoxville. ETPCS offers personal care, homemaker services, personal support and licensed practical nurses. It delivers care to 600 clients per year and generates approximately $5 million in annualized revenues.

The Ensign Group’s (NASDAQ: ENSG) home health and hospice subsidiary, Cornerstone Healthcare, acquired Voto Home Health in Auburn, Washington. That company serves the residents of King County, Washington.

ResCare, a subsidiary of Onex Corp. (TSE: ONEX), acquired four branches of Active Day/Senior Care Centers of America, all in South Carolina. ResCare is the largest provider of services to people with disabilities in the United States, and has operations in 42 states.

Outside the United States, French home health and on-site services provider Sodexo (EPA: SW) acquired Prestige Nursing+Care, based in Surrey, U.K. Prestige Nursing+Care provides private-pay, personalized home care services to seniors in the United Kingdom. It operates through 44 branches.