HME Business

  • Home
  • Topics
    • COVID-19
    • Accreditation
    • Competitive Bidding
    • DME Pharmacy
    • Legislative
    • Mobility
    • Oxygen
    • Pain Management
    • Retail
    • Sales and Marketing
    • Sleep Therapy
    • Software/IT
  • News
  • Resources
    • Whitepapers
    • Buyers Guide
    • DME Associations
  • Podcasts
  • Request Media Kit
  • Webinars
  • Digital Edition
  • Events
  • Awards
  • Advertise
  • Subscribe

The Braff Group: HME Market Shows Decline

January 1, 2007 by HME Business

The Braff Group (TBG), a middle market merger and acquisition firm that specializes in the home health care,
hospice, infusion therapy, specialty pharmacy, home medical equipment and staffing market sectors, released its fourth
quarter 2006 merger and acquisition transaction trend report.

Based upon preliminary year-end numbers, there
were 41 deals announced and/or completed in the fourth quarter of 2006, down 25 percent from the third quarter of this year
and down 35 percent versus the same period last year. For all of 2006, there were 207 deals; a decline of 22 percent compared to 265 transactions announced and/or completed in 2005.

“Not unexpectedly, in a year of substantial unknowns regarding potential further cuts to oxygen reimbursement, the
greatest decline came from the home medical equipment sector,” commented Dexter W. Braff, president of The Braff
Group. “While Medicare legislation passed at year end did not include these cuts, an atmosphere of heightened risk
remains, which will likely make 2007 another challenging year for M&A in the HME arena.”


Although full year deal volume in infusion therapy and specialty pharmacy was down slightly in 2006 in terms of raw
numbers, the M&A market in these sectors remains strong. “We are seeing more acquisition interest in these sectors,
particularly from private equity sponsors, as buyers look to capitalize on expectations of increased utilization, introductions of new, complex, high-margin therapies, and a reasonably predictable reimbursement climate,” said Chuck Gaetano, TBG managing director for home infusion therapy and specialty pharmacy.


The brightest spot in 2006 was the home health care sector, which set a transaction volume record of 86 deals up 6 percent
over the previous year’s record of 81. This marks the first time that home health has led all the other sectors in
transaction activity. “This is just what we expected as we entered 2006,” said Steven Braff, TBG managing director for home health and hospice. “A combination of high demand from both strategic and financial buyers, stable reimbursement, and an extremely favorable industry outlook has made for an extremely attractive M&A environment. With Medicare reimbursed services receiving a rate increase this year, we fully expect this trend to continue in 2007.”

Related Articles Read More >

HME Business Survey: Call for Participants on Revenue Cycle & Operational Technology
Home medical equipment professionals are eligible to take the new survey.
Sumitomo Corp. Acquires ActivStyle LLC in Latest HME Investment
Last month, Sumitomo announced it had increased its stake in Vast Medical Holdings, parent company of HME provider Quest.
May 2025: How Science Is Backing HME
New research is demonstrating the clinical and financial value of home medical equipment.
ASPEN, WCCC Launch Industry Surveys
Featuring the American Society for Parenteral and Enteral Nutrition and the Wound Care Collaborative Community.

Get the free newsletter

Home Healthcare Softare

Subscribe to HME Business for industry & product news, trends and resources.
HME Business Directory
HME Podcasts
continuum event
HME Business
  • Mobility Management
  • Senior Housing News
  • Home Health Care News
  • Skilled Nursing News
  • Hospice News
  • Behavioral Health Business
  • About HME Business
  • Contact Us

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search HME Business

  • Home
  • Topics
    • COVID-19
    • Accreditation
    • Competitive Bidding
    • DME Pharmacy
    • Legislative
    • Mobility
    • Oxygen
    • Pain Management
    • Retail
    • Sales and Marketing
    • Sleep Therapy
    • Software/IT
  • News
  • Resources
    • Whitepapers
    • Buyers Guide
    • DME Associations
  • Podcasts
  • Request Media Kit
  • Webinars
  • Digital Edition
  • Events
  • Awards
  • Advertise
  • Subscribe