Certificate of Need Markets Can Mean Big Business for Home Health Buyers, But Opportunities Are Growing Scarce

Home Health Care News January 14, 2021
Andrew Donlan

Home health mergers and acquisitions got off to a slow start in 2020, then picked up considerably by year’s end. Home health insiders are now predicting a big year for M&A activity in 2021, especially after COVID-19 relief vanishes and economic realities become clearer.

The Patient-Driven Groupings Model (PDGM) will likewise play a part in the M&A landscape, as will other payment-related changes.

But another major factor will be Certificate of Need (CON) laws in some states and regions. Whether buyers want to enter into those precious territories — and whether prospective sellers are willing to give up their valuable position — will be an intriguing storyline in coming years for home health dealmaking.

A CON program is a state...

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