The first quarter of 2022 delivered thirty-five reported behavioral health acquisitions, returning to average deal volume after a spike in activity to end 2021. Mental health and addiction treatment continue to be at the forefront of consolidation. We will highlight a few notable deals from the period.
The hospice and home health care industry is expected to grow strongly over the foreseeable future, driven by powerful demographic trends, including a rising elderly population, longer life spans and more chronic and age-related illnesses.
A must read for Home Healthcare and Hospice Agency Owners. We examine the key factors that have come together like a perfect storm to create the major industry consolidation currently underway. A unique window of opportunity now exists where eager buyers and motivated sellers can complete win/win deals.
Private equity firms and strategic investors are interested in acquiring agencies to expand their home healthcare and hospice businesses at the same time sellers are dealing with the operational challenges created by the recent shift to the Patient Driven Grouping Model. This has led to a record level of deal activity during the first eight months of 2021.
The first quarter of 2021 delivered 38 reported behavioral health transactions, an increase over any quarter in 2020. We expect some of this activity reflects deals that were delayed due to COVID-19. However, we generally expect high deal flow throughout 2021, supported by increasing private equity interest, a favorable government, and a seller pool that is ready to transact.