Home Care May Have Reached Its ‘Tipping Point’ With Billing Rates

The home care industry faces a 'tipping point' in billing rates and regulatory challenges, noted by home care leaders in strategizing for 2024. Daniel Gottschalk highlights consumer tolerance limits, emphasizing clients' diminishing patience for errors and reducing lengths of stay. Establishing robust sales funnels is vital for sustaining services amidst declining satisfaction. Despite pricing constraints, Jeff Wiberg emphasizes organic growth through sales strategies. M&A prospects for 2024 indicate slower first-half activity but foresee improvements later. Decreased buyers affect pricing and multiples, impacting companies' market positions. Interest-rate-driven trends influence franchise M&A perspectives, expecting limited opportunities for high-quality assets.

Medigy Insights

Home care leaders predict a 'tipping point' in 2024 due to billing rate challenges, labor issues, and regulatory complexities. Consumer tolerance is low for errors, influencing client retention and shorter stays. Building robust sales funnels becomes crucial for maintaining service levels. Daniel Gottschalk highlights pricing limitations, while Jeff Wiberg stresses organic growth strategies. M&A prospects indicate a sluggish start but potential improvements later in 2024, affecting market dynamics and multiples. Interest rates influence franchise M&A, limiting opportunities. The industry confronts various challenges, signaling a need for strategic resilience amidst evolving home care landscapes.

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