The hospice merger and acquisitions market has been running hot, with activity showing no signs of cooling as 2022 kicks off.
M&A activity in the home health and hospice spaces outpaced other health care service sectors in 2020, according to a report by PwC’s Health Research Institute.
Regulatory activity could add fuel to a fiery market, according to Heath Bartness, founder and CEO of St.
“The new regulatory environment does seem to be a bit more punitive in nature, and I think that inevitably we’re going to see more programs that are probably not divesting but may decide not to be in the space anymore,” said Bartness during the summit.
Regulators have also been zeroing in on the matter of hospice eligibility and continue to be on the lookout for potential violations of the False Claims Act and the closely related anti-kickback statute.
During 2021, appropriate use of general inpatient care was a key focus, which is expected to continue in 2022.
The first report indicated that roughly 20% of hospices surveyed by regulators or accreditation agencies between 2012 and 2016 had a condition-level deficiency that posed a serious safety risk.
January kicked off with the sale of JourneyCare Inc., for an anticipated $85 million to Addus HomeCare , while Jet Health expanded with the acquisition of Texas-based Blessing Hospice.
These deals paint a larger picture of a thriving hospice market where competition has been fierce.
“Sometimes it creates some market chatter or market dynamics that are tough for folks that are long tenured or more tenured in the space.
Addus Homecare, Agape Care, Androscoggin Home Healthcare + Hospice, Blessings Hospice, Care & Comfort, Crossroads Hospice, Encompass Health, H.I.G.
She is passionate about writing with an impactful purpose, and developed an interest in health care coverage in 2015.