Triangle Healthcare Advisors has significant experience in Home Care and Hospice.
We have sold and purchased numerous homecare and hospice businesses. This includes transactions like the sale of Northwestern University Healthcare’s home care operations which was led by Chuck Gaetano, along with Walgreens sale of its’ Hospice division to Hospice Compassus, a Private Equity-backed Hospice provider, the sale of Walgreens Homecare business to regional providers, and Omnicare’s purchase of Heartland Hospice of Oklahoma in deals led by Rob Monahan. Dan Bramuchi also has direct operating experience as Executive Director of a Hospice owned by Odyssey (now owned by Gentiva) and had P&L responsibility for the home health businesses owned by Option Care at various locations. John Canavan has a unique payor focused understanding of home care and hospice. As a board member, Finance Chair and Chairman of the Board of HealthNow (dba Blue Cross and Blue Shield of Western New York), John has unique insights into how payors view homecare and hospice and its growing importance in healthcare.
The future is bright for M&A activity with relatively high valuations in the Hospice and Home Health Care segments which have been consolidating for many years. Reimbursement is stable to positive. CMS proposed Medicare payments to home health agencies increase by 2.1%, or $400 million, in calendar year 2019. Continued integration across the care continuum necessitates IT and other investments. Payors have recognized the value of population management and coordinated care, and are expecting providers to take more risk. This provides an advantage to providers with scale. Demographically, home care services will continue to grow as the population ages and wants to stay in the comfort of their homes. Private equity has billions of capital to put to work. Investors are even pouring money into traditionally less-favored segments like private duty and Medicaid agencies. Private equity is pouring into the space. Interest rates are historically low and access to financial leverage is high.
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