The home health and hospice mergers and acquisitions market accelerated in the first quarter of 2016 after a relatively slow year in 2015, according to Health Care M&A Report, published by Norwalk-based Irving Levin Associates Inc.
There were 18 publicly announced transactions in the first quarter, 50 percent more than in the fourth quarter of 2015, and 6 percent more than the first quarter last year.
The value of first quarter 2016 home health and hospice M&A deals, where price was disclosed, was $183.5 million, up 69 percent from the fourth quarter and 32 percent from the year-ago quarter.
Most transactions are small and many do not have disclosed prices, which makes comparing the periods difficult, the report said.
The largest disclosed transaction price in the first quarter was the purchase of Genesis Healthcare’s home health business for $84 million by Compassus, a private Tennessee-based company.
This was followed by acquisitions of $37 million by Almost Family, $28 million by Amedysis, and $18 million by Kindred Healthcare. Kindred announced three separate home health and hospice acquisitions in the quarter.
“Post-acute providers continue to seek home health and hospice businesses to round out their networks in local markets, and the large, publicly traded home health and hospice providers remain active in the market,” said Lisa Phillips, editor of the Health Care M&A Report.
