Encompass Health (NYSE: EHC) will be targeting large acquisitions in the home health and hospice space during 2020 with an emphasis on hospice, due to disruption in the home health sector resulting from the Patient Driving Groupings Model (PDGM). Effective Jan. 1, 2020 Medicare began reimbursing home health care providers through PDGM, which classifies patients into payment categories based on clinical characteristics and other patient information, and shifts the home health payment model to a 30-day payment period rather than the current 60-day episode. Despite record high multiples in the hospice sector, Encompass will be in the market for new opportunities, particularly for companies that are backed by private equity firms.
Read the full article: Encompass Health’s 2020 M&A Strategy Leans Towards Hospice //
Source: https://hospicenews.com/2020/02/10/encompass-acquisitions-2020-ma-strategy-leans-towards-hospice%EF%BB%BF