One of our favorite ways to kick off the year is to spend time with forward-thinking healthcare innovators, operators, and investors, and TripleTree's latest stop on the healthcare conference circuit was Home Care 100, an annual gathering of home health, home care, and hospice leaders. Jon Hill, a TripleTree Managing Director focused on healthcare services, shared his top three takeaways from the event:
1. There is a renewed sense of energy and excitement for M&A in 2024
As noted earlier this year, the convergence of private equity dry powder, demand for investor return on capital, and an improving rate environment is fueling an ongoing desire to improve and invest in outstanding pain points and growth opportunities within post-acute care.
In the last few weeks, we've seen notable deal announcements across the post-acute care space, including StateServ's acquisition of Delta Care Rx (TripleTree served as exclusive financial advisor to StateServ for this transaction). This combination forms a leading care-at-home data, technology, and service platform and the industry's first scaled DME and pharmacy solution. Additionally, BrightSpring Health Services, a provider of comprehensive home and community-based health services to complex populations, also announced the pricing of it's initial public offering.
2. The stabilization of the labor environment has triggered strong operational performance coming into 2024
There has been a spotlight on the healthcare labor market over the past few years and it continued to be top-of-mind at Home Care 100. Last year at this event, I chatted with various providers who were beginning to experience some stability and optimism that we would see labor market improvements over the coming year, and today, we’ve seen positive results from clinical labor growth and cost stabilization over the past twelve months. As we get further away from the height of the pandemic, the demand for in-person care is rising and people are returning to work, especially as COVID-19-related benefits are depleting.
3. There is a continued focus on end-of-life care
It’s no secret that the population is rapidly aging, and a prominent theme at the event was the increasing attention to and M&A opportunities within end-of-life care. Within this important area of healthcare, personal care also continues to be a big focus, however there is a regulatory overhang (i.e. the “80/20 Rule”) that we hope to receive some clarity on in the coming months. Skilled nursing is still of interest, but folks are more cautious given historical and continued rate cuts.
This year is shaping up to be a strong year from an M&A perspective when it comes to post-acute care, and we are encouraged by the enthusiasm, pace of discussion, and inquisitiveness of the market.
Did you attend Home Care 100? Let's continue the discussion.