More Mergers and Acquisitions Likely within the Home Care Industry 

Please Share!

More Mergers and Acquisitions Likely within the Home Care Industry Financial investors see a great deal to celebrate when it comes to the in home care industry. It’s no secret that the home care sector is the number one job creator in the country. It’s also no surprise that spending on home care services is rapidly outpacing hospital services, physician care, and even pharmaceutical spending. 

What has a tendency to get investors excited, though, is not simply the growth of an industry, but the number of acquisitions and mergers. 2018 saw a significant number of valuations, which is only one key indicator, but it also witnessed a number of buyers acquiring smaller agencies and merging with other companies. 

As noted in the HomeCare Magazine blog, Exploring the Trends Behind a Rise in Home Health Transactions, written by Greg Shulas: 

“I see positive signs for the industry that will impact many entities,” said Mark Kulik, managing partner at The Braff Group, a strategic health care advisory firm. Helping to fuel vibrant M&A activity is the growing demand for home health care services, as 12,000 American citizens a day register for Medicare, and as baby boomers increasingly prioritize homecare versus institutional stays, Kulik said. 

The deal-making should act as an extension to what’s been a healthy 13-month period. “2018 was a very good year,” Kulik said. “We had incredible valuations that occurred in 2018. But it was not just valuations, it was the number of buyers.” 

The majority of mergers and acquisitions are anticipated to come through the hospice and private duty home care sector in 2019. This helps to spur an increase in add-on investments, which could mean a number of different options or greater access to care for clients who need these services. 

Home health is far more regulated than hospice and home care. That makes hospice and home care more attractive to mergers and acquisitions than home health care services. This could very well indicate an increase in coordinated care for clients who may need direct medical supports as well as assistance with Activities of Daily Living (ADLs). 

While home health accounted for the greatest number of closed deals in 2018, private duty home care showed a significant increase percentagewise in the deals that occurred between 2017 and 2018. That could be an indicator of a growing interest from mergers and acquisitions within this sector. 

According to analysts, there are few risks emerging that could negatively impact mergers and acquisitions within this marketplace for 2019 and in the foreseeable future. 

Valerie VanBooven, RN BSN, Editor in Chief of HomeCareDaily.com

Editor in Chief of HomeCareDaily.com at LTC Expert Publications
Valerie is a Registered Nurse, Author, and Co-Owner of LTC Expert Publications. Read More at http://www.LTCSocialMark.com
Summary
More Mergers and Acquisitions Likely within the Home Care Industry 
Article Name
More Mergers and Acquisitions Likely within the Home Care Industry 
Description
Financial investors see a great deal to celebrate when it comes to the in home care industry. It’s no secret that the home care sector is the number one job creator in the country. It’s also no surprise that spending on home care services is rapidly outpacing hospital services, physician care, and even pharmaceutical spending. 
Author
Publisher Name
HomeCareDaily.com
Publisher Logo
Please Share!