The M&A market in the rehabilitation sector picked up steam in 2015, with 30 announced transactions. The shift toward bundled payments, led by the Center for Medicare and Medicaid Services, had a strong effect on this fragmented market. Private equity firms were building platforms, while at least one REIT picked up a few facilities. Like physician medical groups, targets in this sector tend to be small, privately held operations and their acquisitions aren’t always publicly announced. For that reason, the data may underrepresent the actual interest in this field.
