Hospice Regulation Slowing Down M&A Transactions
Hospice News March 8, 2024
Tightened regulation in the hospice space has led to longer, more stringent diligence processes when it comes to buying and selling provider companies.
The U.S. Centers for Medicare & Medicaid Services (CMS) has honed in on hospice program integrity through a number of new regulations, including some in the agency’s 2024 hospice final rule. The regulations focused on Medicare enrollment in an effort to stifle unethical or illegal activity in the space. Other provisions appeared in the 2024 home health final rule, which among other things prohibits the sale of a new hospice within 36 months.
Moreover, many hospices have been the subject of audits by various Medicare contractors, activity that shows no signs of slowing.
This means that potential...