Industry
Home Health M&A Activity Increases After Four-Year Decline
Home health and hospice merger and acquisition activity is increasing after four consecutive years of decline. Industry analysts expect the proposed CY2027 home health rule and Medicare enrollment moratoria to drive further dealmaking through 2027. Transaction volume and valuations are both projected to rise. The trend affects home health agencies operating in Medicaid programs, particularly those serving dual-eligible beneficiaries or those considering consolidation strategies.
Why it mattersConsolidation among home health providers could affect Medicaid managed care plans' provider networks, particularly for LTSS and dual-eligible populations where home health is a critical benefit.