PE investment in home health - Jim Moskal weighs In

The in-home care industry is seeing record-breaking valuations and a historic pace for mergers and acquisitions. Heavy investment from private equity firms is among the dominant drivers of that action, and not just for in-home care, but for the U.S. health care sector more broadly.

As private equity becomes increasingly involved in the health care world, skeptics are starting to question the intentions of these firms and their ability to balance profits with the responsibility of providing high-quality, affordable care.

Home health companies on the receiving end of private equity investment generally consider the experience to be positive, including Livingstone client Home Helpers.

“”Home Helpers, acquired by Ohio-based Linsalata Capital Partners in 2016, has had a similarly positive experience with private equity, though the initial ownership change and new operational processes did take a while to get used to, CEO Emma Dickison told HHCN.

“Working with Linsalata, we’ve made a number of investments into the organization to help us scale and manage the business, including things like an upgraded customer relations management system, new mapping software,” Dickison said. “We’ve invested in staff. We’ve invested in marketing for both franchise development and the consumer side.””

“There is probably an all-time high of private equity interest in home health,” Jim Moskal, partner and head of Livingstone’s health care practice, told HHCN.

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