At the start of the year, the biggest disruption expected in the Home Health & Hospice sector was the Patient-Driven Groupings Model (PDGM), a reimbursement overhaul introduced by the Centers for Medicare and Medicaid Services (CMS) on January 1, 2020. The impact on small agency owners was expected to be tough, with many industry insiders predicting a wave of bankruptcies, closures, and sales in the first year of PDGM. That would have been disruptive for the M&A market, but it wasn’t expected to last, once companies adjusted to the changes in rates and cash flow. Now, with the COVID-19 pandemic more than 100 days into its march across America, PDGM seems like the least of the worries. Deal flow was deeply disrupted beginning in mid-March when the pandemic was taking hold in California, New York, and Massachusetts. It hit the skids in April.
Read the full article: Disruption Hits Home Health & Hospice M&A //
Source: https://healthcare.levinassociates.com/2020/05/05/disruption-hits-home-health-hospice-ma