Effective management and geographic location are two key factors that can determine whether a private equity firm will invest in a hospice. Private equity interest in the hospice market has been on the rise, driven by the fragmented nature of the industry, increased acceptance of palliative care services, the aging population, the changing regulatory landscape, and movement towards value-based payment models. “In our practices we look for sophisticated management teams. It takes a skill set to be able to navigate and understand the hospice rules and how to make businesses viable. When I’ve seen investors find sophisticated management teams, that is something I have seen them latch on to very significantly. That’s one of the primary drivers that I’m seeing in the hospice industry,” said Trey Andrews, associate at the consulting firm McGuireWoods and co-author of a recent report on investment in senior care industries.
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