Home Health & Hospice Week

Buckle up as deal activity continues full steam ahead.

As home health and hospice companies adjusted to pandemic pressures and reimbursement system changes, mergers and acquisitions revved up in the latest quarter.

“There were at least 51 home health, home care, and hospice transactions in the fourth quarter of 2020,” according to data from home care M&A firm Mertz Taggart. “That’s 22 more than in Q3 2020 — and the most deals in any individual quarter over the last three years,” the Fort Myers, Florida firm says in its M&A report for the quarter ended Dec. 31, 2020.

Factors such as the incoming Biden administration and the likelihood of a capital gains tax hike likely influenced the quarter’s activity, suggest managing partner Cory Mertz.

“Following nine or ten months of a public health emergency, some sellers also probably just hit a wall in the fourth quarter, prompting an exit,” the firm adds.

Such factors mean the M&A activity will continue to be robust in the coming year, Mertz predicts. “We expect an active 2021,” he says.

Here are a few of the latest deals:

In Arizona: The Pennant Group Inc. has acquired Sacred Heart Home Health Care with locations Phoenix and Tucson. “This strategic, off-market acquisition expands our service offerings in the Tucson market and strengthens our presence in Phoenix,” says Pennant CEO Danny Walker in a release. “We have been eager to add home health services to the care continuum in Tucson for some time.” Pennant operates 80 home health and hospice agencies in 14 states.

In Idaho: Salzer Home Health is dropping its name and will operate under its parent’s name, Terrace Home Health, says the agency headquartered in Meridian. The agency will also add hospice services in Treasure Valley, it says in a release. Terrace operates in Idaho and Missouri.