BATON ROUGE, La., June 01, 2020 (GLOBE NEWSWIRE) — Amedisys, Inc. (NASDAQ:AMED), a leading provider of home health, hospice and personal care, announced today that, through one of its wholly owned subsidiaries, it has closed on its acquisition of Homecare Preferred Choice, Inc., doing business as AseraCare Hospice (“AseraCare Hospice” or “AseraCare”), a national hospice care provider with an executive office in Plano, Texas and administrative support center in Fort Smith, Arkansas. Under the terms of the agreement, Amedisys acquired 100 percent of the ownership interests in AseraCare Hospice for a cash purchase price of $235 million, which is inclusive of a $32 million tax asset bringing the net purchase price to $203 million. The Company did not use any of the funds received by the Company from the Public Health and Social Services Emergency Fund that was appropriated by Congress to the Department of Health and Human Services in the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to fund the acquisition. “AseraCare has been on our radar for a long time. We have long admired their strong culture, focus on patients and employees and commitment to always providing high-quality care,” stated Paul Kusserow, Amedisys’ president and chief executive officer. “We are excited about the opportunity, as one company, to bring the gift of hospice to more communities.” Founded in 1994, AseraCare Hospice cares for more than 2,100 patients daily and employs more than 1,200 hospice professionals in 44 locations across 14 states, generating approximately $117 million in annual revenues. This acquisition adds greater scale to Amedisys’ high-quality, nationwide network. Combined, our new hospice operations will include 190 care centers in 35 states, with an average daily census of approximately 14,000 patients and approximately 7,000 hospice employees. “We feel privileged to welcome AseraCare Hospice into the Amedisys family. We share our commitment to delivering compassionate, patient-centered care to patients and their families, and a culture of engagement and support to our colleagues and caregivers,” said Anthony Mollica, Amedisys’ president of hospice. “We are all in the hospice business because we care. For us, this is not our job; caregiving is our calling.” This acquisition is the fourth hospice acquisition for Amedisys since 2019. The Company acquired and integrated Compassionate Care Hospice in February 2019, RoseRock Healthcare in April 2019 and Asana Hospice in January 2020. “AseraCare and Amedisys have always shared an absolute and sacred commitment to help our patients live each day to its fullest, one person, one family and one community at a time,” stated AseraCare President Larry Deans. “I am fully confident that Amedisys will continue and build upon our mission-driven purpose and high-quality care for our patients and families for years to come.” Read more here…GlobeNewswire Click to read Amedisys to Acquire AseraCare Hospice for $235 Million

The COVID-19 emergency has wreaked havoc on the U.S. and global economy, with nearly every industry feeling the impact of virus-related restrictions. Yet despite the stresses resulting from the pandemic, both behavioral health and home-based care M&A remain relatively strong. Behavioral health and home-based care are certainly not immune to the impact of the virus on their operations, but the short- and long-term outlooks for both segments are largely positive with hospice, addiction treatment and mental health sub-sectors poised to do especially well. Demand for these service lines remains steady, even amid the coronavirus. Behavioral Health M&A Interestingly, behavioral health M&A, which includes addiction treatment, autism/IDD and mental health — has not dropped off significantly in light of the pandemic. With 10 deals mid-quarter, the industry is on track to remain in the ballpark of Q2 2019 (27 deals) and Q1 2020 (22 deals). “On the behavioral health side, especially addiction treatment and mental health, this pandemic will unfortunately create more demand as people struggle with their new realities,” says Mertz Taggart Managing Partner Kevin Taggart. While the coronavirus might lead to a modest slow-down in transaction activity in the short-term, behavioral health will likely be one of the quickest industries to bounce back, with addiction treatment and mental health being especially attractive.  Mertz Taggart has seen a renewed interest from buyers since the pandemic, because behavioral health is considered an essential service, and for the most part has weathered the storm much better than other industries. “While interest in addiction treatment deals has cooled in recent years, we’re expecting things to start picking back up as we move through 2020,” Taggart says. “COVID-19 will weed out some providers and will lessen competition in the addiction recovery space, where we’ve recently seen record census for the well-run companies nationwide.” Outpatient services such as Medication Assisted Treatment (MAT), traditional mental health and addiction treatment services, and the ability to negotiate in-network contracts with commercial payers will make such providers especially attractive to buyers. Home Health, Home Care, Hospice M&A Meanwhile, home-based care — including Medicare-certified home health, hospice and non-medical home care — has taken more of a hit, with only nine transactions quarter-to-date, compared to 25 deals in Q2 2019 and 27 deals in Q1 2020. That represents a fall-off of about 30-35%. But even before COVID-19, industry experts were predicting a drop in home health M&A in 2020, largely due to the implementation of the Patient-Driven Groupings Model (PDGM) payment system overhaul for home health, which took effect Jan. 1. “We may have had a few deals get pushed back or killed due to COVID-19, but most of this dip is a predictable result of PDGM,” Mertz Taggart’s Cory Mertz says. “Buyers want to wait until the dust has settled on PDGM and see how potential targets perform under the new model, which requires at least a few months of financial and patient data.”  We believe we’ll start to see more home health companies come to market in the second half of 2020. The fall-out from PDGM hasn’t been as bad as many had predicted, with many home health agencies performing better under the new system. While select home health transactions will prevail in the short term, they’ll likely be highly strategic, paired with hospice, or rescue deals. Additionally, despite demand, COVID-19 adds a degree of complexity because home health providers aren’t currently being reimbursed for providing telehealth services, resulting in additional financial strain. Meanwhile, hospice M&A remains hot. Q1 2020 saw more transactions in the space than ever before, continuing a two-year upswing. Again, that isn’t surprising, but rather a strategy many buyers have adopted amid pausing home health transactions. And while hospice has had to endure some business challenges amid the coronavirus, those have been less disruptive than those in home health. COVID-19 Buyer Motivations Strategic buyers are still pursuing M&A opportunities in behavioral health and home-based care, and they’re financially equipped to do so. However, most executive and operations teams are currently consumed with COVID-19, meaning M&A is taking somewhat of a back seat in the short term. Private equity companies are also re-deploying a portion of their dry powder to keep holdings in harder hit industries afloat. Plus, travel for due diligence is difficult right now, and banks — which typically provide new funding for deals — are exercising caution, as they’re writing off significant amounts of debt for bleeding industries. “Banks’ focus right now is on salvaging what they can from those investments, so their ability to lend will change, as will their standards,” Mertz says. “They will mostly likely not be able to be as aggressive as they were in 2019, but for essential healthcare companies we believe the lenders will come back in Q3 or Q4 of 2020.” One piece of good news is that more PE buyers than ever are showing interest in behavioral health and home-based care, and they’re still sitting on record levels of capital. Looking Ahead In the short term, deal activity will likely rise steadily in home-based care and behavioral health, especially in hospice, addiction treatment and mental health. But throughout 2020, many of those deals will be smaller transactions with EBITDA below $5 million. Valuations will likely remain flat for larger deals and down modestly for smaller companies. “Valuations almost definitely will not be going up, but for well-run companies we don’t expect them to go down much, if at all, either,” Taggart said. “For individual companies that are considering a sale, valuations will depend on where you are in your COVID-19 recovery. Those companies that haven’t yet fully recovered, but expect to, may still be able to command ‘as-if’ pricing, but the buyer will likely want the seller to take on some of that recovery risk in the form of an earnout or other structure.” Ultimately, well-run behavioral health and home-based care companies have an optimistic future ahead on the other side of COVID-19. “All said, we expect we’ll continue to inch back toward normalcy,” Mertz said. “We expect deal volume to get back to near-normal levels by mid-2021. It seems like a long time, but companies that are recovering and going to market today likely won’t close until Q4 2020 or Q1 2021.” Trackbacks/Pingbacks – Mertz Taggart - […] is a predictable result of PDGM,” Cory Mertz of the M&A advisory firm Mertz Taggart said in a report. “Buyers… Market Forecast: COVID-19’s Long-Term Impact on Home Care – My Blog - […] In the first half of Q2 2020, there were only two home care acquisitions, compared to six total in… Market Forecast: COVID-19’s Long-Term Impact on Home Care » RegentCares - […] In the first half of Q2 2020, there were only two home care acquisitions, compared to six total in… Market Forecast: COVID-19’s Long-Term Impact on Home Care - Medicare & Health Insurance News - […] In the first half of Q2 2020, there were only two home care acquisitions, compared to six total in… Market Forecast: COVID-19’s Long-Term Impact on Home Care | Primary Care at Home - […] In the first half of Q2 2020, there were only two home care acquisitions, compared to six total in… Market Forecast: COVID-19’s Long-Term Impact on Home Care – Safety Health News - […] In the first half of Q2 2020, there were only two home care acquisitions, compared to six total in…

A Charleston, S.C.-based location of national aging services company Senior Helpers has acquired hospice provider Lowcountry Companions, also located in South Carolina. Financial terms of the deal were not disclosed. Senior Helpers, parent company to the Charleston location, is a portfolio company of Altaris Capital, a private equity firm which purchased the senior services company for $125 million in 2016. “Our acquisition of Lowcountry Companions strategically expands our reach in South Carolina allowing for more growth of in-home and hospice care opportunities, said Amy Petersen-Smith, owner of Senior Helpers of Charleston. “In light of recent events, home-based care is on the front lines of health care and we’re passionate about supporting our community. We are proud to provide a valuable resource to local elders and their family by helping to alleviate the stress associated with caregiving and ensure a better quality of life for families through personalized in-home senior care. To read more click here…Hospice News

RALEIGH, N.C. and BOSTON, May 20, 2020 /PRNewswire/ — Broadstep Behavioral Health, a leading provider of programs and services to individuals living with intellectual, developmental or behavioral disabilities, today announced it has received a significant investment from Bain Capital Double Impact. Broadstep, which formerly operated as Phoenix Care Systems, Inc., is partnering with the impact investing business of Bain Capital to further expand its integrated, high-quality care into adjacent services and new markets. Financial terms of the private transaction were not disclosed. Founded in 1972 with a mission to deliver care while promoting independence and enhancing quality of life, Broadstep today serves more than 1,300 individuals in 86 facilities across Wisconsin, North Carolina, New Jersey, Illinois and South Carolina. Long waiting lists for home and community-based services have grown more than 20 percent since 2016, leaving approximately 425,000 individuals with unmet needs. Broadstep continues to expand to address these significant gaps by offering a range of support programs, including residential group homes, specialized schools for children, and vocational and day programs that help foster life skills development and realize social and professional potential. Alongside the expansion of services, the company has increased hiring efforts in each of its markets and recently onboarded its largest training class for direct support personnel through its online professional education platform, Broadstep University. “I’m incredibly proud of our leadership team and our dedicated caregivers who have gone above and beyond to continuously improve outcomes and address the needs of the individuals we serve,” said Lynn Mason, President and CEO of Broadstep. “We are excited to partner with Bain Capital Double Impact and to leverage their resources and support as we build new standards of care and expand through acquisitions and into complementary care services. We share the same mission to create better outcomes for a growing, underserved population that today lacks the residential and community-based programs and facilities that can empower personal growth.” About Broadstep Behavioral Health Broadstep Behavioral Health provides a continuum of physical, emotional, and mental support for children and adults with intellectual and development disabilities (I/DD), mental illness, and co-occurring disorders. Founded in 1972, Broadstep has grown to now serve more than 1,300 individuals in 86 facilities across Wisconsin, North Carolina, New Jersey, Illinois and South Carolina. With outcomes rooted in discovering and championing personal definitions of progress, our individuals, families, caregivers, and neighbors are building more and more communities people can call home. Visit https://www.broadstep.com/ to learn more.

Bristol Hospice (AKA Optimal Hospice Care, A Bristol Hospice Company), in coordination with Webster Capital, has added Pro Hospice Agency, Inc. a for-profit hospice provider to its portfolio. No financial terms were disclosed. Salt Lake City, Utah (May 18th, 2020) – Bristol Hospice, a portfolio Company of Webster Capital, is pleased to announce the purchase of Pro Hospice Agency, Inc. in Fresno, CA. Pro Hospice offers care in a variety of settings. Alongside traditional hospice care services, the Pro Hospice Facility (HOFA) is the first of its kind in Fresno. This HOFA is a skilled nursing facility for hospice patients only, with a homelike environment. The mission of Pro Hospice has always been to “honor life and offer unforgettable memories”. Ripsime Danielyan, the owner of Pro Hospice Agency noted that, “We saw a like-mission in Bristol Hospice, to embrace a reverence for life. We have spent the last years putting patient care first and are delighted about what this new relationship with the Bristol Hospice team will mean in terms of being able to offer even more for all our hospice patients. The specialty care programs of Bright Moments and Sweet Dreams which Bristol Hospice have pioneered in Hospice care will be a huge addition to the patient care toolbox. This team of professionals has the capacity to build upon the foundation we created and as our vision statement says ‘Support our staff so they can put our patients and families first, find creative ways/solutions to add quality to end of life, strive for excellence and increase our communities awareness of hospice and its services.’ ” Bristol Hospice CEO, Hyrum Kirton, remarked that, “Pro Hospice Agency, Inc. has been an exceptional Hospice provider to the Fresno community and has had the unique capability of providing inpatient care in its Hospice House. We are excited to combine our compassionate teams and be able to have an inpatient setting to serve our patients and our community. Our commitment to quality and clinical standards is shared and we look forward to bringing the teams together in our mission of embracing a reverence for life.” Bristol Hospice will merge the Fresno staff and operations of Pro Hospice Agency, Inc and its HOFA facility, into the existing Bristol Hospice Fresno program called Optimal Hospice Care, A Bristol Hospice Company. Thus, building upon the existing standard of care and providing an additional array of exceptional support programs to patients, families, and local community alike. About Bristol Hospice Bristol Hospice began operations in 2006 and is headquartered in Salt Lake City, Utah. Bristol Hospice has a long history of providing exceptional hospice care across the country. It currently operates 30 locations across 8 states including: CA, OR, HI, UT, CO, TX, GA and FL as Bristol Hospice, Bristol Hospice Utah, Optimal Health Services and Suncrest Hospice of Colorado. The Bristol Programs are designed to promote quality and comprehensive hospice services to patients and families in the communities they serve. The Bristol leadership is committed to the company’s mission in ensuring that all patients and families who are entrusted to our care will be treated with the highest level of compassion, respect, and quality of care. For additional information on Bristol Hospice please visit www.bristolhospice.com

EAGLE, Idaho, May 18, 2020 (GLOBE NEWSWIRE) — The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, today announced that it has acquired two affiliated hospice agencies in Arizona: Prime Hospice, operating in the Phoenix metro area; and Harmony Hospice of Arizona, located in Kingman and serving northwestern Arizona The acquisition was effective May 16, 2020. “These acquisitions are a great example of an off-market opportunity resulting from relationships we developed over many years,” said Daniel Walker, Pennant’s Chief Executive Officer. “We continue to source a number of off-market opportunities and marketing offerings as understanding of our innovative operating model, patient-centered approach to care, and emphasis on healthy culture continues to spread within the industry,” he added. “We are excited about our continued growth in Arizona, where we have become a leading provider of hospice care,” said Brent Guerisoli, President of Cornerstone Healthcare, Pennant’s home health and hospice portfolio company. He added, “We have been following Prime and Harmony closely for a number of years and have been impressed by their firm commitment to quality patient care and their excellent relationships in the local healthcare communities. We welcome their teams and look forward to building upon their past success within our cluster-centered operating model.” Pennant expects to close on the acquisition of a third affiliated hospice agency also located in the southwestern United States on or before July 1, 2020, subject to standard closing conditions. Mr. Walker reaffirmed that Pennant continues to pursue opportunities to acquire home health, hospice and senior living businesses throughout the United States. Trackbacks/Pingbacks 1. Enhanced Healthcare Partners Invest in NeuroPsychiatric Hospitals - [...] a leading provider of integrated healthcare for patients with acute psychiatric disorders and complex medical and neurological disorders...

Acorn Health Acquires Behavior Basics, LLC in Alexandria, VA May 18, 2020 02:37 PM Eastern Daylight Time MIAMI–(BUSINESS WIRE)–Acorn Health, a national provider of Applied Behavior Analysis (“ABA”) therapy for children diagnosed with autism, is pleased to announce the acquisition of Behavior Basics, LLC, a provider of high quality, center-based and in-home ABA therapy in Alexandria, Virginia. The acquisition of Behavior Basics expands Acorn Health’s current capabilities in the Northeastern region of Virginia. Acorn Health now has a significant presence across the state of Virginia and is currently providing ABA services throughout Michigan, Illinois, Virginia, and Florida. Acorn Health Acquires Behavior Basics, LLC in Alexandria, VA-Acorn Health, a provider of Applied Behavior Analysis (ABA) therapy for children diagnosed with autism, acquires Behavior Basics, LLC, a provider of center-based and in-home ABA therapy Tweet this “Gabi Torres and her incredible staff at Behavior Basics have been providing high quality and family-centered ABA services for the community in and around Alexandria for many years and we are so fortunate to be adding them to our team,” said Lorraine Riche, President of Acorn Health’s East Coast Region. “Our mission at Acorn is to give the next generation of children with autism every opportunity to live an independent and meaningful life and with this acquisition we are one step closer to reaching that goal.” “My goal at Behavior Basics has always been to be a place where people want to work and a place that provides the highest quality services to our clients. By joining Acorn Health, we join forces with a group of people who care deeply about their employees and the families they serve. Together, we will be able to meaningfully expand our services and support more families in need of care,” said Gabi Torres, Founder of Behavior Basics. Autism has been recognized as the fastest growing developmental disability. Identifying at-risk children by two years of age leads to the highest likelihood of early intervention. Research suggests that early intervention programs are beneficial for children with autism spectrum disorder, often improving developmental functioning and decreasing maladaptive behaviors and the severity of symptoms. ABA is one of the most researched and widely accepted forms of behavior therapy for children with autism, and at Acorn Health, clinicians work closely with each family to help their children find their strengths and develop independent, meaningful lives. “We are thrilled to welcome Behavior Basics to the Acorn Health Family!” said Katie Wilcox, a Board-Certified Behavior Analyst (BCBA) and Acorn Health’s Regional Director of Operations. “We have worked collaboratively with the staff at Behavior Basics and feel fortunate to join forces with an excellent group of clinicians who share our commitment to quality of services, collaboration, and offering the best experience to our clients. We look forward to a bright future serving the Northern Virginia region with this partnership.” This article originally appeared in BusinessWire Click the link to read Acorn Health Acquires Family of ABA Therapy Companies From CFN.

NASHVILLE, Tenn.–(BUSINESS WIRE)–Integrative Life Center (ILC), a nationally recognized treatment center for mental health and substance use disorders, today announced the acquisition of Begin Again Institute of Boulder, Colorado, a treatment center specializing in treating sex and pornography addiction in adult males. “The depression, anxiety and isolation brought on by the COVID-19 pandemic are only going to make a bad problem that much worse. Together, ILC and Begin Again are honored and grateful to be well-positioned to serve those in need.” “Begin Again Institute shares ILC’s belief that we must address core issues and deep-rooted trauma, not just the resulting behaviors, to experience healing and lasting transformation. Dr. Michael Barta is an incredibly talented thought leader and clinician in our field, and his addition to ILC’s executive leadership team adds a tremendous depth of expertise. We are thrilled to enter into a fully integrated partnership with BAI, especially as the number of people struggling with mental health and intimacy disorders in our country continues to rise,” said Ryan Chapman, CEO of Integrative Life Center. “The depression, anxiety and isolation brought on by the COVID-19 pandemic are only going to make a bad problem that much worse. Together, ILC and Begin Again are honored and grateful to be well-positioned to serve those in need.” Founded in 2008, Begin Again Institute helps men heal both the cause and symptoms of their sexually addicted behaviors and rebuild relationships with damaged wives, partners and other relationships. The Institute’s founder, Dr. Michael Barta, works with nationally recognized trauma specialists to understand and develop treatment for sexual addiction as the result of attachment disorders. He developed the TINSA™ (Trauma-Induced Sexual Addiction) model of treatment utilizing the most recent research concerning the neurobiological formation and treatment of sex addiction and continues to publish numerous articles and book chapters regarding psychological issues and sexual addiction. Led by Certified Sex Addiction Therapists and Certified Clinical Partner Specialists utilizing dialectical behavioral therapy (DBT), the Trauma Resiliency Model (TLM), Psychobiological Approach to Couples Therapy (PACT), BrainSpotting and other evidence-based therapies, Begin Again Institute offers a variety of treatment programs, including a 14-day Men’s Intensive, Individual and Group therapy, 3-day Couples Intensives, 2-day Partner’s Intensives, and online courses. “From the moment I started speaking with Ryan Chapman, I knew our philosophies were a perfect match,” Dr. Barta said. “I’m very excited for Begin Again Institute to be strategically partnered with Integrative Life Center so that we can continue our shared mission to help as many people as possible get free from addiction.” Part of the national recovery community for over a decade, ILC integrates evidence-based methods with non-traditional approaches in a holistic program for clients to achieve lasting recovery of body, mind and spirit. The community reintegration model provides personalized treatment plans, so clients can progress at their own pace in a real-world environment. ILC is one of the only mental health and addiction treatment centers with a protocol for testing clients for COVID-19 upon admission and if necessary, providing a supervised quarantine environment with telehealth services until the client is cleared to join group therapies. In addition to the multi-disciplinary, evidence-based therapies that ILC provides — cognitive behavioral therapy (CBT), comprehensive resource model (CRM), dialectical behavior therapy (DBT) and EMDR, as well as adventure, spiritual and experiential methods — Dr. Barta’s highly effective TINSA™ model is being integrated into the sex addiction program for men. Those who may need treatment in addition to the two-week intensive at Begin Again Institute in Boulder can consult with the same admissions department to arrange for a higher level of care at ILC. This article originally appeared in an article in BusinessWire.

Bluebird Homecare, a Nashville, Tennessee-based home care company, has acquired Champion Caregivers in Fort Worth, Texas, and is looking to keep expanding. The company has five locations, including the addition in Fort Worth, and has been in operation since 2015. Read more here… Home Health Care News.

The evolution of Amedisys Inc. (Nasdaq: AMED) continues. The Baton Rouge, Louisiana-based home health, hospice and personal care provider announced early Monday morning that it has a deal in place to acquire AseraCare Hospice for $235 million. As structured, the agreement includes a $32 million tax asset, effectively lowering the overall purchase price to $203 million. “AseraCare is a great hospice company,” Amedisys CEO and President Paul Kusserow told Home Health Care News. “When we decided that hospice was a business line we wanted to move forward in back in 2016, we actually approached AseraCare. But they weren’t for sale.” Read more here… Home Health Care News

Transactions Rebound as Providers Find ‘New Normal’ The second quarter of 2020 saw the lowest number of home health, home care, and hospice transactions since the end of 2017. That sudden downturn was not a surprise, as the COVID-19 pandemic threw cold water on deal-making conversations while casting a long, uncertain shadow on all senior care subsectors. Since spring, however, home-based care buyers and sellers have had a chance to adapt to the “new normal” focused on infection control, government relief, and new telehealth technologies. Across the home health, home care, and hospice landscapes, patient and client volumes have additionally rebounded. Transaction activity appears to have recovered as well, particularly for home health assets. “I probably sound like a broken record at this point, but hospice M&A activity remains healthy, with the only issue being demand that far outpaces supply,” Mertz Taggart Managing Partner Cory Mertz says. “The real takeaway from Q3 is that we’re starting to see home health deals return, which is great news headed into 2021.” Cory Mertz, Managing Partner In total, there were 25 transactions across home health, home care, and hospice in Q3 2020, Mertz Taggart data shows. That’s at least four more deals than in the previous quarter, with some deals likely still unreported. The sum of sub-industries (broken down above) does not always equal total sector deal volume, as some transactions include more than one sub-industry. Home Health Deals Spike In Q2, there were just five home health transactions, a sharp decline from the 14 that took place in Q1 2020. “Looking back, those five deals made up the lowest home health total that we’ve had since we started tracking this data,” Mertz says. “But we’re back to business as usual, for the most part.” In contrast to the second quarter, there were at least nine home health deals in Q3 2020. Among the known deals: The Pennant Group Inc. (Nasdaq: PNTG) announced in September that it had acquired CMS Home Health Care, a Texas agency with locations in Brownwood and Coleman. Texoma Medical Center also acquired Northeast Medical Center Home Health in September. In August, Actinium Healthcare Holdings announced its acquisition of Central Home Health Services of Texas Inc. There are multiple reasons for the spike in home health deals. As noted in previous M&A updates, home health providers are feeling increasingly confident in their ability to navigate the Patient-Driven Groupings Model (PDGM) and its impact on cash flow. Another factor is the home health-to-hospice recalibration happening among the large strategic buyers. “Strategic buyers have been focused on tri-locating home health, home care, and hospice in their markets, with priority on hospice,” Mertz said. “But many of them have rapidly expanded into hospice now, and hospices are still hard to find. In turn, attention is returning to home health, which is maybe an easier way to penetrate new markets.” Apart from the reported deals, Mertz Taggart is also hearing of several additional conversations taking place, perhaps laying the groundwork for a blockbuster Q4 and 2021. Hospice Demand Remains High The hospice subsector again dominated in-home care transactions, as it has since the start of last year. In all, there were at least 16 hospice-related deals in Q3 2020, two more than the 14 transactions reported during the previous quarter. Overall, Mertz Taggart has logged more than 150 hospice transactions since Q1 2017. Private equity was the driving force behind at least 11 of last quarter’s hospice deals. “PE buyers are hungry for hospice,” Mertz says. “While past interest has partly been tied to home health uncertainty, some of the new interest may be linked to emerging Medicare Advantage opportunities for hospice providers.” At the end of September, PE-backed Three Oaks Hospice purchased Hospice Partners of Kansas, marking the Texas-based company’s entry into the Kansas and Missouri markets. Also in September, PE-backed Bristol Hospice completed its acquisition of Remita Health, the provider’s seventh acquisition of 2020. Meanwhile, Traditions Health expanded into two new states in August, with the acquisitions of Faith Hospice of Oklahoma and Embrace Hospice of Georgia. Traditions followed up on those deals by purchasing Physician’s Choice Hospice and Palladium Hospice the following month. Home Care Nears Possible Boom Compared to the home health and hospice markets, home care M&A activity was slow in the third quarter. Mertz Taggart tracked just two deals, down compared to Q2’s five transactions and Q1’s seven transactions. “There’s still a lot of demand in this area,” Mertz says. “There just haven’t been a lot of attractive assets on the market, and many of these transactions don’t get reported.” While it didn’t close in Q3, there was one major home care-related acquisition agreement announced. In a deal expected to close before the end of 2020, The Providence Service Corporation (Nasdaq: PRSC) announced on Sept. 29 that it had entered into a definitive agreement to purchase home-based care company Simplura Health Group for an enterprise value of $575 million. New York-based Simplura operates home health and non-medical personal care agencies in seven states. “Above all, Simplura advances our vision to create the nation’s preeminent social determinants of health company,” Daniel Greenleaf, president and CEO of Providence, said after the agreement was announced. It’s worth mentioning that Simplura generated $463 million in revenue and $49.6 million in Adjusted EBITDA for the 12-month period ending June. This translates to transaction multiples of 1.24x revenue and 11.6x adjusted EBITDA. “Providence is trading at about 22x EBITDA, so this transaction allows them to both be aggressive on their valuation and still be very accretive to their earnings,” Mertz commented. Despite the slow Q3 for home care, Mertz Taggart believes Q4 will bring record or near-record deal volume when more assets come to market. “There are a lot of home care transactions currently in process across the country, with a goal of closing before year-end. They may not all get across the finish line by December 31, but that’s the objective,” Mertz suggested. The 2021 Picture Hospice is still hot, home health M&A is picking up and home care is sprinting into Q4. All of that suggests that 2021 will be an exciting, action-packed year for deal-making, especially if the COVID-19 situation is partially resolved through a publicly available vaccine. Trackbacks/Pingbacks Centerbridge Partners, The Vistria Group Acquire Wellspring’s Help at Home - Healthcare & Pharma and Nutrition - […] saw the lowest number of home health, home care and hospice transactions since the end of 2017, according to… Centerbridge Partners, The Vistria Group Acquire Wellspring’s Help at Home – My Blog - […] saw the lowest number of home health, home care and hospice transactions since the end of 2017, according to… Centerbridge Partners, The Vistria Group Acquire Wellspring’s Help at Home » RegentCares - […] saw the lowest number of home health, home care and hospice transactions since the end of 2017, according to… Home Health, Hospice & Home Care M&A 2020 Year in Review: A Tale of Two Halves – Mertz Taggart - […] health, hospice and home care transactions during the first three quarters of 2020, Mertz Taggart data shows. While the… Insights Series: Videocasts – Mertz Taggart - […] Streaming NOW: Managing Partners Cory Mertz and Kevin Taggart discuss the Q3 2020 Home Health, Home Care and Hospice… My Homepage - ... [Trackback] [...] Read More: mertztaggart.com/home-health-home-care-and-hospice-mergers-acquisitions-quarterly-report-q3-2020/ [...]

PEORIA, Ill., Nov. 12, 2020 /PRNewswire/ — OSF Ventures has joined an early round of funding for Madison, Wisconsin-based DotCom Therapy, a therapist-founded company specializing in skilled, face-to-face, online therapy services. Speech language pathologist Rachel Robinson founded the company in 2015 as a solution to widespread therapy shortages for children across the country. “We really saw value in a company that is filling the need for mandated special education services required for 14% of all public school children across the country,” said Stan Lynall, vice president for OSF Venture Investments. “In many cases, video visits supplement what the schools are able to provide through their own, school-based therapists.” Lynall added, “We are excited to partner with DotCom Therapy as they expand their service offerings to health care systems.” DotCom Therapy provides services to more than 250 schools across the U.S. It offers mental health counseling, speech therapy, occupational therapy, and behavioral health services. OSF Ventures joins New Capital Partners in the Series A funding to grow DCT’s customer base and scale their services into health care systems such as Peoria-Illinois-based OSF HealthCare which will launch a pilot using Dotcom Therapy for children who are on the autism spectrum. Read the full press release. Trackbacks/Pingbacks Behavioral Health M&A Quarterly Report: Q4 2020 – Mertz Taggart - […] a platform deal, New Capital Partners and OSF Ventures, part of the OSF Health System, […]