M&A activity quickly picked up this year and there’s no sign of a slowdown. Home health and hospice providers were hungry for acquisitions as the U.S. began to emerge from the pandemic. The trend will likely continue as the year wraps up, and as more patients move to the home to receive care. This is according to our own Jennifer and Tom Maxwell as they sat down for our latest episode of the MHA Corner. You can listen to the full episode, but you can also read a quick snapshot of the topics they covered below.
Why the uptick in M&A?
According to our own experts, the rise in M&A activity this year is due to increased opportunities that exist within the market. There are plenty of opportunities to acquire and merge with agencies that hone certain expertise and have technology that is useful for both staff and patients. Many agencies want to be able to provide the best care possible, and that means the addition of other service lines that best benefit their facilities. This is a big reason for the number of transactions that have taken place.
Possible tax hike?
Proposed legislation may increase the tax rate on long-term capital gains from 23.8% to 43.4%. This is likely another reason for the activity. The legislation would go in effect in 2022 and agencies are in a rush to ink deals as quickly as possible.
MHA’s role in M&A activity
MHA’s approach is tailored to the transaction and goals pre and post close. Along with our in-depth due diligence process, MHA provides the post-acquisition roadmap for optimal results. MHA provides unparalleled transitioning through project management, business analytics, Robotic Process Automation (RPA), revenue cycle expertise, implementation, and optimization. This formula has proven results for organizations expanding their portfolios or growing their territories.
Now with MHA’s Provider Unification Plan (PUP), agencies will have an easier time unifying their acquired branches as you combine processes, operations, and cultures all together. The provider unification plan (PUP) is a tool that gives clarity, focus and process to the post-acquisition transition. It accounts for the three legs that stand up any organization, people, process, and technology. It also serves as a communication plan to the rest of the organization, which decreases anxiety and concern among staff during this big change.