WASHINGTON—A new report predicts there could be a spike in the volume and valuation of homecare mergers and acquisitions (M&A) for 2027.
The report, "Insight into Health Care Services Mergers & Acquisitions," released by the Braff Group, said that M&A transactions have been rising and could return to or even surpass pre-pandemic numbers if the pattern from the first half of 2026 continues.
"While post-2023 market conditions (when activity began to tick upward) haven’t been all sunshine and roses—stubbornly high interest rates, inflation remaining above the (Federal Reserve Bank's) target of 2%, unrest in Eastern Europe and the Middle East, and economic uncertainty—buyer activity has nevertheless risen steadily," the report's authors write, adding that gains would likely have been even higher without the fallout from Medicaid cuts.
The report drills down into several sectors, including:
- Home health and hospice: The authors say the second quarter of 2026 has set the table for a strong period of dealmaking in home health and hospice over the next 12 months.
- Home medical equipment (HME): The report says that at the current pace, HME deal volume is up 63.6% over 2025 and could post its highest numbers since 2022.
- Home infusion and specialty pharmacy: The report says this sector is on pace to top last year’s tally by 32% and its highest output over the past 10 years.
To read the full report, click here.