How Proposed Cuts to Home Health Payments Could Impact Hospice M&A

August 31, 2022

Any disturbance in home health reimbursements will influence the hospice mergers and acquisitions market, particularly among the rising number of companies offering both services.

The introduction of the PDGM is a perfect example of this.

“At the time, on a national level, no one knew how 2020 reimbursement was going to shake out and, specifically, what the behavioral adjustment would ultimately be. Then there was uncertainty at the agency level, with those agencies doing heavy therapy projected to lose 10-20% of their reimbursement for the same work,” Cory Mertz, managing partner of the M&A advisory firm Mertz Taggart, told Hospice News. “This created uncertainty over a somewhat protracted period of time. So many industry consolidators paused all but the most strategic deals and pivoted to hospice.”

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