PRIVATE EQUITY INVESTING
In Post-Acute & Home Healthcare Companies
Thu, Nov 7 @ 8:00 am - 5:00 pm
Many Positive Trends Suggest
That Post-Acute & Home Healthcare
Opportunities Will Remain Strong
Private Equity Investing
In Post-Acute & Home Healthcare Companies
Much like a baby boomer who exercises and eats right, the post-acute and home healthcare industry keeps going strong!
According to one estimate, the industry is continuing on a years-long roll, logging 382 deals between 2014 and 2018, up from 278 in the preceding five-year period.
After the sector’s banner year in 2018, perhaps investors can be forgiven for assuming it may be due for a slowdown. After all, that year included the $4.1 billion acquisition of Kindred-at-Home by Humana and a consortium of PE firms – not to mention the $2.4 billion merger between LHC Group and Almost Family.
But many positive trends support an optimistic view that the industry’s market strength will provide investment opportunities for 2020 and possibly 2021 —
- Demographic factors continue to be favorable — by 2030, one in every five U.S. residents will be over 65.
- Acceptance of post-acute care continues to grow — the percentage of inpatients discharged into a post-acute arrangement rose to almost 50% in 2016, up from only 30% in 2006.
- The shift to a value-based care model – where reimbursement gets tied to outcomes and cost of service – rather than a traditional fee-for-service model.
- The recession-resistant nature of healthcare.
- The abundance of opportunities to diversify into new post-acute subsectors or to increase their geographic density.
- Low supply and high demand for scaled, high-quality platforms.
These trends explain why in spite of high valuations, many investors are doing new deals and building platforms, while more and more new investors are entering the sector.
All the same, pending regulatory changes and moves toward value-based care mean some sub-sectors are facing heavy tailwinds. For instance —
- Hospice — Continues to be a top priority for strategic and financial buyers given consistently strong demographic trends, a favorable reimbursement outlook and the attractive organic and inorganic growth inherent in the sector. Vistria Group recently acquired Hospice of South Carolina, on the tail of its 2017 acquisition of St. Croix Hospice. HIG Growth acquired Sage Hospice and MBF Healthcare Partners acquired Affinity Hospice in 2018, and Summit is in the process of acquiring Abode Healthcare.
- Personal Care Services (which entails less skilled services than home health) — Is attracting more interest as some services are now supplemental benefits under Medicare Advantage. Bain and J.H. Whitney-backed Aveanna Healthcare’s agreement to acquire the home health care division of Maxim Healthcare Services.
- Home Health — Has tempered a bit due to PDGM, the Centers for Medicare & Medicaid Services’ home health payment reform plan. The Partnership for Quality Home Healthcare has estimated that PDGM could mean $1 billion in lost revenue for home health providers in 2020. However, that doesn’t mean deals aren’t getting done. For instance, Advent International recently acquired AccentCare.
- Other adjacent areas — There are also opportunities adjacent to hospice and home healthcare, such as in-home infusion, and service providers like pharmacies and durable medical equipment providers that are providing services to home health companies. In one recent deal, BlueMountain Capital Management became a minority investor in Adapthealth, a provider of home medical and respiratory equipment, prior to the Company going public via a SPAC merger.
Cain Brothers / KeyBanc Capital Markets Inc.
Thursday, November 7, 2019
8:00am – 5:00pm
Midtown Manhattan, NY
Register now to gain valuable insights as 20-plus speakers
assess the outlook for private equity investing in post-acute & home healthcare companies at
The Capital Roundtable’s all-day conference
on Thursday, November 7, in Midtown New York City.
Three Key Reasons Why You Should Join Us
- Learn which sectors are most positive for investment opportunities
- Discuss how to benefit from the move toward value-based care
- Hear how other investors identify companies that are growing organically, creating de novo opportunities, and using M&A
- The impact of the new Medicare & Medicaid payment system, referred to as the patient-driven groupings model
- How Medicare Advantage is covering personal care
- The rationale for investing in businesses with a strong presence in a particular geographic region
- Opportunities in hospital-affiliated systems
- Opportunities in telehealth
- How investors are upping due diligence in the areas of compliance, payer audit, and governmental investigation
- Investing in big metro areas versus rural areas
- New technology that can help businesses streamline operations, such as point-of-care systems for nurse note-taking
- How to measure improved patient outcomes and reduce hospital read missions
- How to use operating partners to make home health investment more successful
- The characteristics of a strong management team in post-acute and home health
- Where to look for exits and find strategics that are a good match for portfolio companies
Recent Middle-Market Deals in the Post-Acute & Home Healthcare Sector
- Advent International has agreed to acquire Dallas-based post-acute and hospice provider AccentCare Inc. from Oak Hill Partners.
- Kelso & Company and Blue Wolf Capital Partners have acquired Jordan Health Services, a leading provider of home health and hospice services.
- The Vistria Group acquired Hospice Care of South Carolina and its subsidiary, Hospice Care of Georgia, which provide hospice and palliative care services to patients across South Carolina and Georgia.
- H.I.G. Capital, has completed a strategic investment in Sage Hospice, a leading provider of hospice and palliative care services to patients in the Phoenix, AZ market.
- MBF Healthcare Partners has agreed to acquire a majority interest in Affinity Hospice, a leading provider of hospice care services to patients in the Alabama and Georgia markets.
- Addus HomeCare Corporation, a provider of comprehensive home care services, has agreed to purchase Hospice Partners of America, a multi-state provider of hospice services headquartered in Birmingham, Alabama.
- Encompass Health Corp. a national leader in integrated post-acute healthcare services, has agreed to buy privately owned Alacare Home Health & Hospice. Birmingham, Alabama-based Alacare, operates 23 home health locations and 23 hospice locations in Alabama.
Matt Margulies leads Cain Brothers’ (a division of KeyBanc Capital Markets) post-acute services advisory practice, including Home Health and Hospice, Home Infusion, Specialty Pharmacy, Distribution, and Respiratory Therapy/DME. Margulies has more than 20 years of healthcare services investment banking experience, advising both public and private companies in a variety of merger and acquisition, capital raising, and strategic advisory transactions. Prior to joining Cain Brothers in 2004, Margulies was with Lehman Brothers’ Global Healthcare Group.
Among his notable transactions are the sale of Alacare Home Health & Hospice to Encompass Health; the acquisition of Civitas Health Services by Centerbridge Capital Partners; the sale of St. Croix Hospice to The Vistria Group; the sale of Optimal Health Services to Bristol Hospice; the sale of New Century Hospice to Curo Health Services; the sale of Salveo Specialty Pharmacy to Catamaran; and the sale of BioScrip’s Home Health Services Business to LHC Group..
This Capital Roundtable conference in midtown, New York City, is all-business, all-targeted, all-designed to be a completely focused day of practical information and revealing insights about post-acute & home healthcare companies. You’ll gain valuable insights from —
- Three informative panel discussions
- Two revealing keynote presentations
- Real-world perspectives from company investors
- Industry outlooks from noted sector experts
- War stories and lessons learned from experienced hands
- Matthew Margulies, Managing Director, Cain Brothers / KeyBanc Capital Markets Inc.
- Burt Alimansky, Chairman & CEO, The Capital Roundtable
Preliminary Speaker List
- Nick Amigone, Partner, Amulet Capital Partners LP
- Brian Berkin, Partner, Tailwind Capital Group LLC
- Mark Borneleit, Chief Executive Officer, DME Express, LLC
- Dexter W. Braff, President, Braff Group
- Owen Davis, Partner, Martis Capital
- Philip Edmunds, Principal, WayPoint Capital Partners
- Jason Faucett, Director, Transition Capital Partners
- Eugene Goldenberg, Vice President, Cain Brothers & Co. LLC
- Christopher Graber, Partner, Waud Capital Partners LLC
- G. Scott Herman, Chief Executive Officer, Elara Caring
- Kris Kemp, Member, Bass Berry & Sims PLC
- Hyrum Kirton, Chief Executive Officer, Bristol Hospice LLC
- Randy Klein, Chief Executive Officer, Hometeam
- Vincent J. Lambert, Partner, MTS Health Partners LP
- Steve J. Larkin, Chief Executive Officer, Charter Healthcare Group LLC
- Burk Lindsey, Managing Director, Raymond James & Associates Inc.
- James Pieri, Partner & Head–Private Healthcare, BlueMountain Capital Management LLC
- Bryan H. Pope, Partner, Edge Healthcare Partners LLC
- James T. Robinson, Chief Executive Officer, CareFinders Total Care LLC
- Daniel Savitt, Executive Vice President and Chief Financial Officer, Visiting Nurse Service of New York
- Rutul Shah, Partner, Birchwood Healthcare Partners
- Matthew Thompson, Partner, Enhanced Healthcare Partners
- Jayson Zirman, V.P.–Healthcare Investment Banking, B.C. Ziegler & Co.
7:30am – 8:30am
Networking & Registration & Breakfast
8:30am – 9:00am
Welcoming Remarks & Audience Self-Introductions
9:00am – 9:30am
Conference Chair’s Introduction —
- Matthew Margulies, Cain Brothers / KeyBanc Capital Markets Inc.
9:30am – 10:30am
First Panel —
Trends PE Investors Are Watching in Post Acute Care to Learn What’s Driving the Surge in Deals & Valuations
10:30am – 11:15am
Networking & Coffee
11:15am – 12:00pm
Morning Conversation —
Pros & Cons of Investing in Medicaid-Funded Personal Care Services
12:00pm – 12:30pm
Morning Keynote —
- Daniel Savitt, Visiting Nurse Service of New York
12:30pm – 1:30pm
Networking & Luncheon
1:30pm – 2:30pm
Second Panel —
Hospice Care–Hottest Subsector in Post-Acute Investing — Strong Demographics & Reimbursement Fuel PE Interest
2:30pm – 2:45pm
Networking & Dessert
2:45pm – 3:30pm
Afternoon Conversation —
Supporting the Unique Needs of Post Acute Providers —
Durable Medical Equipment & Specialized Pharmacies & Home Health & Hospice Services Companies
3:30pm – 4:30pm
Third Panel —
The Future of Eldercare Investments — New Technologies & Investment Opportunities on the Horizon
Networking & Adjournment
Space at this conference is limited, so register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Chris Agar today to confirm your attendance at 212-832-7300 ext. 0 or firstname.lastname@example.org.
Please note that Capital Roundtable limits the number of registrants from a single firm to three.
Best Rate – Early Registration
Save $300 off the standard fee of $1,495 when you register by Friday, September 30. Just $1,195.
Save $200 of the standard fee! Register by Friday, October 11, and the fee for the conference is $1,295.
$1,495 increasing to $1,595 day of conference, space permitting.
$1095 each until Friday, October 11, when you register two or more people to attend from the same company. This rate increases to $1295 each after Friday, October 11.
You can pay by credit card (using the links above or below) or by check. Mail your check and business card to: New York Business Roundtable Inc., 747 Third Avenue, Suite 200, New York, NY 10017.
Can’t attend but want to hear the program? You can buy the audio package along with the handounts.
This event is sponsored by:
Advanced ICU Care
Ally Financial Inc.
Athyrium Capital Management
Aurora Consulting Services
Bindley Capital Partners
Blue Wolf Capital Partners
BlueMountain Capital Management
Broadcrest Asset Management
Cain Brothers / KeyBanc Capital Markets
CIT Group Inc.
Clifton Larson Allen
Concord Health Partners
Cressey & Co.
Dorilton Capital Advisors
Enhanced Healthcare Partners
Extended Home Care
Farragut Square Group
Foley & Lardner
Halyard Capital Management
Health Care Navigator
HealthInvest Equity Partners
Irving Levin Associates
Levine Leichtman Capital Partners
Lincoln Healthcare Leadership
MBF Healthcare Partners
McKinsey & Company
New Capital Partners
New State Capital Partners
Regal Healthcare Capital Partners
Ridgemont Equity Partners
River Cities Capital Funds
Sentinel Capital Partners
Waud Capital Partners
WayPoint Capital Partners
West Monroe Partners
William Blair & Co.
Zimmet Healthcare Services Group