The Administration on Aging projects the number of Americans aged 65 and older will rise to 80.8 million by 2040, creating significant demand for home health delivery models in the US. To meet this demand, strategics, payors, and private equity are relying on mergers and acquisitions to build economies of scale. These efficiencies can solve chronic problems like staffing shortages, meet Medicare and Medicaid value-based care reimbursement requirements, and satisfy patient appetite to receive care at home. The shift towards value-based care reimbursement models by the Centers for Medicare and Medicaid Services will continue to drive investment in the home health sector. To understand this trend, it is important to consider several investing themes strategics are deploying to expand their value-based care capabilities.
