A clear trend has emerged in the health care industry: Mergers and acquisitions of health care firms have slowed year over year.
Though home-based care M&A showed “signs of life” in Q3 2024 in what has otherwise been a relatively quiet year thus far, transaction volume was still down last year, according to a report from M&A advisory firm Mertz Taggart.
An estimated six hospice deals took place in Q3 of last year, with six home health and 11 home care also completed, Mertz Taggart reported. Private equity transactions represented half of these deals. A total of 30 hospice transactions were completed in 2023, compared to 19 deals as of the end of 2024’s third quarter, the report found.
Dr. Julia Frydman, senior medical director at Nashville-based Thyme Care, runs its palliative care wing. She believes palliative care may be inoculated against that industry trend.
“As the health care industry moves from fee-for-service to value-based care, we are seeing more risk-bearing providers, like health plans, primary care groups, or oncology practices that take on risk, make more of an investment in palliative care programs,” Frydman said.
Thyme Care specializes in oncology care, and according to Frydman, the company is a value-based care enabler with a focus on comprehensive “wrap-around” services for patients living with cancer. Wrap-around services encompass a suite of possible patient needs, from transportation or financial problems to housing needs.
Seen in that light, the support Frydman has seen for palliative care programs makes sense. Her program aims to prevent critical and expensive medical issues from emerging.