“We had early success this year with two Medicaid-driven home care agencies in Texas,” Moran said. “I don’t know that there would have been as much interest if there wasn’t that push from a national level to support these companies and prop up these businesses.”

Home care M&A activity could lose some steam in 2022, experts say.

McKnights Home Care | Diane Eastabrook

After perhaps the hottest year on record for mergers and acquisitions, the home care, home health and hospice industry could lose some firepower in 2022.

Mike Moran, partner at M&A Healthcare Advisors, told McKnight’s Home Care Daily Pulse increased federal funding could encourage private equity buyers to cut deals. He said the 10% increase in Federal Medical Assistance Percentages helped spur some deals last year.

“We had early success this year with two Medicaid-driven home care agencies in Texas,” Moran said. “I don’t know that there would have been as much interest if there wasn’t that push from a national level to support these companies and prop up these businesses.”