Hospice News September 18, 2019
Emerging payment models such as the forthcoming Medicare Advantage carve-in demonstration may start to bring down record-high hospice multiples in what continues to be a burgeoning mergers and acquisitions market, but falling multiples are unlikely to curtail widespread industry consolidation in the long term, hospice CEOs said at the Home Health Care News Summit conference in Chicago.
Demographic tailwinds and availability of capital have been driving a robust market for companies looking to acquire hospice and palliative care companies. From 2016 to 2018, the space saw more than 10 transactions of $250 million or higher in total enterprise value, with at least five transactions individually exceeding $700 million of value, the highest ever in the industry, according to the...