Industry
Hospice M&A Rebounds as Buyers Prioritize Compliance, Cash Flow
Hospice News reports that hospice M&A activity is rebounding in late 2025 and 2026 after a three-year slump, with The Braff Group projecting 44 transactions in 2026 compared to just 25 in 2023. Industry advisors say regulatory compliance has become buyers' top criterion, driven by heightened government and contractor audits and Medicare payment clawbacks. Compliance scrutiny is especially acute in states under CMS's provisional period of enhanced oversight, which now includes California, Arizona, Nevada, Texas, Ohio and Georgia, where claims face medical review before payment. Beyond compliance, buyers are also weighing management strength and the transferability and sustainability of cash flow when valuing acquisition targets.
Why it mattersHospice providers in enhanced-oversight states must prioritize billing and compliance audits before going to market, since regulatory red flags now directly threaten deal valuation and execution timing.