There is no doubt that 2020 brought many obstacles to the post-acute M&A landscape. There was the commencement of the Patient Driven Groupings Model (PDGM) for the home health industry and the emergence of the COVID-19 pandemic, which brought a potential to halt most M&A activity for the year. However, the combination of these hurdles also brought overwhelming interest to the post-acute industry, record-high multiples, and opportunities for providers and investors to strategically position themselves in the market.
Although the pandemic led to Q1 and Q2 delays in M&A activity, it was not capable of bringing all activity to an entire halt. The pandemic allowed the post-acute industry to show its resilience, strength, and importance as providers of all sizes across the nation quickly pivoted in response and re-positioned themselves to continue to provide high-quality care to their patients.