Home Health & Hospice Is Primed for Consolidation

Home Health & Hospice Is Primed for Consolidation

by | Mar 1, 2019 4:13 pm | Home Health & Hospice, Private Equity

The Home Health & Hospice sector is far less fragmented than it was just five years ago. The sector has seen a lot of activity, thanks to the push by payors to move patients towards lower-cost post-acute care settings. That has attracted a lot of investor interest in recent years, and 2018 proved to be a watershed moment as the large-market private equity firms moved in to acquire or build national platforms. Deals by publicly traded companies have changed the sector in significant ways, too. Some merged, such as LHC Group (NASDAQ: LHCG) and Almost Family, Inc. have morphed to focus more on home health than other services, such as Encompass Health Corp. (NYSE: EHC), formerly known as... Read More »
Addus HomeCare Moves into New Mexico Market

Addus HomeCare Moves into New Mexico Market

by | Mar 5, 2018 11:25 am | Home Health & Hospice

Addus HomeCare (NASDAQ: ADUS) has boosted its presence in the southwestern United States with its $40 million acquisition of Ambercare Corporation, a privately held home care company based in Albuquerque, New Mexico. Ambercare provides personal care, hospice and home health services to roughly 2,600 individuals through its 15 locations in New Mexico. It generated revenue of approximately $57 million in 2017. Addus HomeCare provides home- and community-based services to older adults and younger disabled persons. On a trailing 12-month basis it generated revenue of $416.3 million, EBITDA of $34.1 million and net income of $17.8 million. The acquisition of Ambercare closely follows... Read More »
Home Health and Hospice Sector Hit by Headwinds

Home Health and Hospice Sector Hit by Headwinds

by | Jul 21, 2017 3:29 pm | Home Health & Hospice

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 »