Home Health and Hospice M&A Activity Jumped in Q2:2021, According to New Data Irving Levin Associates, LLC – Press Release


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“The pandemic triggered major issues at facility-based care organizations such as skilled nursing centers and hospitals and created a surge in demand for home health and hospice services. Investors quickly took note and seized on the opportunity.”

Deal volume in the Home Health & Hospice sector accelerated in the second quarter of 2021, up 48% with 37 publicly announced transactions, compared with 25 acquisitions in the first quarter of 2021, according to data from Irving Levin Associates, LLC. Compared with the same quarter in 2020, M&A activity more than tripled from just 11 deal announcements.

The most notable deal announced in the second quarter was Humana Inc.’s complete takeover of Kindred at Home, one of the largest home health providers in the country. The health insurance giant paid $5.7 billion for the remaining 60% in Kindred at Home it did not own, including debt, from TPG Capital and Welsh, Carson, Anderson & Stowe, two private equity firms. Kindred at Home employs approximately 43,000 caregivers providing home health, hospice, and community care services to over 550,000 patients annually across 40 states.

Private equity and their platform companies remain active as ever in the sector, but as showcased by Humana’s acquisition of Kindred, other types of investors and strategic buyers have found opportunities in this market. As an example, Advocate Aurora Health, one of the 12 largest not-for-profit, integrated health systems in the nation, purchased SHF Holding Company, which has more than 320 franchised and corporate-owned locations, to bolster its healthcare delivery network.

“Tailwinds continue to drive investor interest in the home health market,” said Dylan Sammut, Healthcare Editor at Irving Levin Associates, which tracks the data. “The pandemic triggered major issues at facility-based care organizations such as skilled nursing centers and hospitals and created a surge in demand for home health and hospice services. Investors quickly took note and seized on the opportunity. And with the aging demographics, we might not have seen how high the demand can reach.”

All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.

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