Postacute and long-term care delivered in US home health agencies (HHAs) has expanded over the past decade, driven by an aging population and efforts to shift care from hospitals to lower-cost settings. In parallel, HHAs have become increasingly attractive to institutional investors. Private equity (PE) investment in health care has increased across multiple health care sectors, reshaping care delivery and market structure. Rising demand and the industry’s fragmented landscape have drawn PE attention to HHAs, where roll-up strategies (acquiring and consolidating smaller agencies into larger firms) can increase valuations through multiple arbitrage. This study aimed to describe patterns in PE acquisitions of HHAs.
Read the full article: Private Equity Acquisitions of Home Health Agencies //
Source: https://jamanetwork.com/journals/jama-health-forum/fullarticle/2841234