Healthcare in the Home has become one of the favorite places for a patient to recover and receive on-going care. This includes the provision of medical equipment and supplies direct to the patient’s front door and bedside. Businesses in the Home Medical Equipment (aka DME – Durable Medical Equipment) sector of the healthcare industry provide medical equipment sales and rentals for home use, including oxygen and respiratory therapy equipment, medical supplies and mobility aids. Since senior citizens exhibit the highest rates of pulmonary illnesses and mobility problems, they comprise the largest market share in this sector. However, medical equipment is expensive to rent and operators rely on third-party payers, including federal programs and private insurance companies, for the majority of their revenue. These companies sell, rent and service devices that are designed to aid in the diagnosis, monitoring or treatment of medical conditions to individuals in their homes. Examples include respiratory and sleep aid equipment and mobility aids such as crutches and wheelchairs.
Market Update
Revenue growth for the Home Medical Equipment (HME/DME) sector surged during COVID-19 (coronavirus) pandemic. Coupled with advancing technologies and remote monitoring capabilities, the demand for home medical equipment and services continues to increase to this day.
The sector remains fragmented with a few national or public companies and many regional and local companies providing services to a growing population. Reimbursement, regulatory and payor issues continue to challenge providers in the sector but the increasing demand and scale driving performance. M&A momentum also continues to accelerate with the increased focus (and demand) for these essential healthcare services and the resulting profitability.
We expect this trend to continue in through 2025 and beyond as acquirers seek opportunities to capitalize on the fragmented marketplace and promising opportunity to gain scale through strategic acquisitions.
M&A Transaction Activity
Below are M&A transaction activities which has been compiled from our work with these companies and research in publicly available information. For additional information, please contact us here.
