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Modern Healthcare - 2021-05-03

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Private equity investors may see opportunities in home healthcare

DATA DIVE

INVESTORS IN HEALTHCARE private equity should expect 2021 to be more promising than the pandemic-stunted 2020, with one area of note being homebased healthcare. A recent report from Bain & Co. noted that “although COVID-19 has caused widespread challenges, the changes wrought by the pandemic also create new business opportunities. With private equity funds looking to put dry powder to work, and the ongoing rise in demand for healthcare, competition for attractive opportunities will intensify.” Bain analysts expect home health—already an area of opportunity—to get a further boost from positive reimbursement changes spurred by the pandemic. “Now there is an opportunity for enhanced levels of care at home, as well as systems that support patient movement between care settings,” they wrote. An example of that can be found in Nashville-based HCA Healthcare’s agreement to purchase 80% of Brookdale Health Care Services for $400 million, announced in February. As part of the announcement, HCA CEO Sam Hazen said the healthcare giant’s objective is to be the healthcare system of choice in the communities it serves through the development of comprehensive services and by delivering high-quality, convenient care.

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