PE Firms Move the Needle in the Rehab Market

PE Firms Move the Needle in the Rehab Market

It’s been a quiet year in the Rehabilitation M&A market, at least through October. There have been 27 deals announced that targeted rehabilitation facilities only, a decline of 37% compared with the 43 deals announced in the full year of 2018. True, that’s 10 months in 2019 versus all 12 in 2018, but we’re not expecting a rash of deal announcements between now and December 31. Activity in this sector has been dropping since its peak in 2017, with 49 transactions. Onc factor may be the October 1 launch of the CMS’ new rule, the Patient Driven Payment Model (PDPM), which changes reimbursement and regulations on rehabilitation in skilled nursing facilities and... Read More »
Rehabilitation Platform ClearSky Health Hits the Ground Running

Rehabilitation Platform ClearSky Health Hits the Ground Running

ClearSky Health, a newly launched rehabilitation platform, is wasting no time on the acquisition front. Created by a partnership between Blue Wolf Capital Partners LLC and Peloton Equity LLC, and a management team led by Darby Brockette, ClearSky Health will develop and acquire inpatient rehabilitation facilities (IRFs) and related post-acute services companies. Blue Wolf Capital and Peloton Equity are focused on middle-market investments and acquisitions and have a diverse portfolio in the healthcare market. The company reported it acquired four Texas and Louisiana-based inpatient rehabilitation facilities from Maxim Management Group, LLC. The specific facilities and price terms... Read More »
Home Health & Hospice Is Primed for Consolidation

Home Health & Hospice Is Primed for Consolidation

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 »
Tailwind Capital Takes Over Abode Healthcare

Tailwind Capital Takes Over Abode Healthcare

The Home Health & Hospice sector is experiencing strong tailwinds this year, with at least 38 transactions announced through May 25. In all of 2017, 62 deals were announced in this sector. Seven of this year’s transactions were direct acquisitions by private equity firms, with Blue Wolf Capital and Stonehenge Partners announcing two deals each. In May, Tailwind Capital, a New York City-based middle market private equity firm, announced its acquisition of Abode Healthcare, based in Durango, Arizona. Abode Healthcare, a portfolio company of Frazier Healthcare Partners, provides a full spectrum of patient-centric hospice and home health services in growing markets in 10 states. The... Read More »
PE Firms Join to Form Home Health Care Giant

PE Firms Join to Form Home Health Care Giant

Consolidation isn’t a novel concept in the healthcare market, although it has been slow to arrive for some. The Home Health & Hospice sector has experienced a few jolts in the past six months, as three publicly traded giants merged or were split up. Now the private equity side has sent a shock wave through this sector, pulling together three separate platform companies into a major contender. Blue Wolf Capital Partners, which has backed both Great Lakes Caring and National Home Health Care for the past two years, joined with Kelso & Company to acquire Jordan Health Services from Palladium Equity Partners, LLC. Financial terms were not disclosed. Upon closing the transaction... Read More »