One of the most fascinating questions surrounding the Centers for Medicare & Medicaid Services’ home health proposed payment rule is what effect it will have on M&A, reports Home Health Care News.
Some say it will stymie acquisitions; others say it will drive them.
Both make sense, too. Some companies may not be allocating more resources and money to the home health side of the house – assuming they have more than one service line – while other, larger companies may take advantage of the margin squeeze that cuts put on smaller operators.
On the other end, some sellers may want to get out of the space given the lack of earnings power they may have moving forward. At the same time, they may not want to sell their businesses when valuations are lower than they have been of late.
This is all contingent on what actually comes in the final rule in October. Read more.
