THE HOMECARE MARKET has seen an increase in consolidation over the past few years, and it’s not expected to slow down, according to experts.
“There has been a lot of activity within the last couple of years,” said Jack Eskenazi, vice president of American Healthcare Capital, a mergers and acquisitions firm. “There were 40 transactions (at AHC) last year and (the) average (in) prior years would have been about 25 transactions.”
Currently, he said, 20 or 30 active homecare agencies are for sale. Acquisitions leave fewer providers as an end result, but don’t eliminate competition, he said. The market is growing so rapidly that there’s plenty of room for existing companies to grow and news ones to enter.
Amedisys, a home nursing company, completed the acquisition of TLC Health Care Services, a provider of home nursing and hospice services, in March. The $395 million deal gives Amedisys control of 92 home health and 11 hospice agencies in 22 states and Washington, D.C.
In February, MBF Healthcare Acquisition, a publicly traded special purpose acquisition company, signed a definitive stock purchase agreement with Critical Homecare Solutions Holdings, Inc., a privately owned, leading provider of comprehensive home infusion therapy and specialty infusion services.
“Acquisition allows for matured, more professional management within the medical home,” Eskenazi said. “Medium-sized agencies seem to want to take advantage of these growth opportunities.”