For Home Health Providers, Finding the Right Revenue Mix is Increasingly a Balancing Act

The home health market has long been anticipated to undergo consolidation, a prediction that has yet to fully materialize despite a recent reduction in the number of home health agencies. However, the industry may finally be on the brink of significant consolidation in the near future. This shift is likely driven by a combination of factors, including the declining payment rates under traditional Medicare and the steady growth of the Medicare Advantage (MA) population. These factors pose challenges for nearly all home health providers but also present opportunities for mergers and acquisitions (M&A) as agencies seek to adapt to the changing landscape. One such example is Vital Caring, a burgeoning home health and hospice provider based in Dallas, boasting a presence in over 65 locations. The evolving dynamics of the home health market necessitate a strategic response, and M&A activity appears poised to play a pivotal role in shaping the industry's future landscape.