2020 was one for the record books! We started the year with a little trepidation regarding the Patient-Driven Groupings Model (PDGM), then the worst public health emergency in our lifetime blindsided everyone. But while COVID-19 disrupted operations and stalled the M&A market, it also highlighted the importance of in-home care within the overall healthcare delivery system. Bill Dombi, president of the National Association for Home Care & Hospice (NAHC), said it best: “There has been a surge in patients admitted with a primary diagnosis of COVID, and the home health agencies haven’t missed a beat.”
Before long, the pandemic freeze-up started to melt and deal flow once again filled our pipeline. By summer, the market started to simmer and has now heated up to a full boil. Literally every segment within the in-home space is in high demand by private equity investors, driving up valuations and making acquisition candidates for strategic buyers that much more expensive.
Now that the vaccines are rolling out, the worst of the crisis is hopefully ending. (But, according to The Department of Health & Human Services, we’re not out of the woods yet.) After a year with limited access to referral sources and patients wary of in-home caregivers, there is so much pent-up demand that we expect the market will likely explode in 2021. We’re already noticing an imbalance as buyers grow more aggressive while good deals remain hard to find.
As you consider your strategy for this breakout year, consider leveraging our experience to help you create value.
Feel free to contact us any time: We’re always happy to discuss market conditions, valuations, and our process for helping you achieve a successful transaction.