‘The Fittest Survive’: HHVBP Expansion Could Drive Home Health Consolidation

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“On the other end of that, you’ve got buyers in the financial sector and private equity firms who are now dipping below what they would have previously for add-on companies. Now they’re competing with strategic buyers to come in and buy out these lower- to middle-market home health businesses.”

Andre Ulloa, M&A Healthcare Advisors

Home Health Care News | Andrew Donlan.

In the U.S. Centers for Medicare & Medicaid Services’ (CMS) proposed payment rule for 2022, the attention-grabber was the expansion of the Home Health Value-Based Purchasing (HHVBP) Model, the details of which excited some providers and left others concerned.

While the specifics of the expansion plan were being discussed during the public comment period, however, one aspect of HHVBP went under the radar: the effect it may have on the M&A landscape.


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