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A robust hospice mergers and acquisitions market is showing no signs of slumping as interest among strategic buyers and private equity investors ramps up. A provider’s performance within evolving value-based payment models may become a factor that potential buyers consider when eyeing a hospice acquisition, particularly as it pertains to their quality and outcomes data.
Private equity interest in the hospice sector has been gaining momentum in recent years, with hospice valuations hitting all-time highs and stepping up competition for acquisition targets. Private equity hospice transactions rose nearly 25% between 2011 to 2020, according to M&A advisory firm The Braff Group.
Awareness of the potential impact of value-based payment can help hospice providers remain competitive in an increasingly competitive marketplace, according to Mark Kulik, managing director at The Braff Group, who told Hospice News that paying attention to how they measure up to competitors will be increasingly important as evolving payment models impact hospice.