Home Health Deals Still Sluggish in Q3:17

Home Health Deals Still Sluggish in Q3:17

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.... Read More »

Amedisys Adds Six Tenet Home Health Centers

Shortly after reporting improved cash flow on its Q4:16 earnings call, Amedisys, Inc. (NASDAQ: AMED) went on a short spending spree. The company picked up six home health and hospice centers from Tenet Healthcare (NYSE: THC), located in Arizona, Illinois, Massachusetts and Texas.  No financial terms were disclosed. Despite potential headwinds from the Republicans’ proposed American Health Care Act (AHCA), still in the House of Representatives, the Home Health & Hospice sector is expected to see strong growth in the coming years. Baby boomers are aging, inevitably, and many are expected to attempt to age-in-place at home, boosting demand for these services. Amedisys’... Read More »