HME has not given up any further ground


Here’s a sneak peak at the The Braff Group M&A Insider in our September issue.

This graph is a 10-year retrospective look at the percent change in deal volume since 2005 for four of the most active sectors in health care.

Here’s The Braff Group’s commentary:

“It’s no surprise that when you examine HME, the sector has spent most of the decade “in the red” at levels 50% below the 2005 base year (immediately prior to the Deficit Reduction Act becoming law in 2006). That said, once the downward pressure was fully absorbed between 2007 and 2008, it has not given up any further ground (and even enjoyed a nice bump between 2011 and 2013). Similarly, after the Medicare home health sector realized substantial gains between 2005 and 2007, there has been virtually no change in deal volume for eight consecutive years, which isn’t too bad given sector volatility in reimbursement and more). So which sectors have enjoyed the longest runs of deal growth since 2005? Well, hospice has had a nice run, but has recently flattened. The big winner?  The once largely ignored behavioral health sector, which has enjoyed near uninterrupted growth in deal flow over the past decade.”