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Payers and private equity investors are among the new entrants stepping deeper into the hospice space. This trend has heated up competition and merger and acquisition (M&A) activity, while posing opportunities for strategic growth in an evolving value-based landscape.
The hospice industry has seen a swath of new entrants amid record-level transaction volume and soaring valuations in recent years. Large-scale hospices have increasingly gone up for sale, with price tags in the hundreds-of-millions-of-dollars range in some cases. Meanwhile, smaller hospices have sought sustainable scale and growth through consolidations, affiliations and mergers.
Consolidation trends in hospice may continue to take shape as providers band together to build sustainable scale amid turbulent financial times, according to Zac Long, CEO of Well Care Health. The North Carolina-based hospice also provides home health, private-duty nursing and personal care services.