The Home Health & Hospice sector has been buffeted by headwinds in 2017. Besides the ongoing labor shortage and federal fraud investigations, the President’s recently signed executive orders affecting cost-sharing reductions for families and individuals earning less than 400% of the federal poverty level could curtail use of home health agencies.
Deal volume remained depressed in the third quarter, at 10 transactions, which represents 20% of the 51 deals announced in the past 12 months. Compared with the same period a year earlier, deal volume was down 17%.
Source: HealthCareMandA.com, October 2017
None of the deals announced disclosed financial terms, just as in the second quarter.
Dollars Spent on Home Health & Hospice Mergers & Acquisitions, by Quarter
|
Q3:16 |
Q4:16 |
Q1:17 | Q2:17 | Q3:17 |
| $422,400,000 | $132,600,000 | $20,945,602 | $0 |
$0 |
Despite the headwinds, two private equity firms announced acquisitions in this quarter. Boyne Capital Partners, which specializes in lower middle-market companies, announced a deal for AmeriBest Home Care, a Medicare-certified home health agency and leading provider of personal care services in Pennsylvania. The company primarily focuses on Home and Community Based Service (HCBS) Waiver programs which allow disabled and elderly patients to remain in their homes and avoid higher cost institutional facilities.
The Riverside Company paid an undisclosed amount for ComForCare Health Care Holdings, LLC, the franchisor of ComForCare Home Care and At Your Side Home Care home health agencies. It has 196 locations in 34 states and three Canadian provinces, providing non-medical and private duty nursing services to the elderly, physically handicapped and injured.
Publicly traded Amedisys (NASDAQ: AMED) made a single acquisition, targeting Intercity Home Care in Malden, Massachusetts. Under the terms of the agreement, Associated Home Care, a subsidiary of Amedisys, will acquire substantially all of the assets of Intercity Home Care. The agreement further solidifies Amedisys’ position as the largest personal care provider in Massachusetts.
