3 Ways Technology Impacts Home Care M&A Success

Blog: 3 Ways Technology Can Impact Home Care M&A Success

Author: Shea Swenson

Posted: February 25, 2025

Innovation, Technology, and the Future of M&A in Home Health & Hospice [Free Webinar]

Home care merger and acquisition (M&A) activity has seen rapid changes and consolidation in recent years as organizations seek to scale their operations, expand reach, and enhance service offerings.

As agencies explore growth options in this active market, traditional factors like financial health, regulatory compliance, and market fit still play a critical role within the home care M&A process and evaluation. However, technology has also become a significant factor in determining success, with key tech-enabled solutions and advances in artificial intelligence (AI) becoming invaluable tools for home care operations.

Between investors’ focus on organizations’ tech stacks and the 58% of providers investing in AI or planning to invest soon to enhance their processes,¹ technology is increasingly shaping the success of home care M&A transactions. In this blog, we will explore 3 ways technology is strengthening the success of home care mergers and acquisition deals:

1. Enhance Operational Efficiency

Home care M&A success often hinges on how seamlessly two organizations can integrate their operations, with technology playing a vital role in this process. Technologies and tools as scheduling systems, electronic health records (EHRs) and electronic medical records (EMRs), billing platforms, and text communication solutions are helping agencies streamline operations and position themselves as a valuable choice in the M&A market.

Incorporating modern solutions into a tech stack is often a successful method for both large agencies that struggle with uniformity across multiple care settings, and smaller agencies that may only have one person managing multiple tasks. By automating processes using AI and tech-enabled care solutions, agencies can grow, thrive, and ultimately focus more on patient care as opposed to the traditional documentation and administrative paperwork.¹

Further, these solutions enable agencies to gather, process, and analyze data from sources such as patient records and operational metrics using advanced tech or AI to ensure a more accurate evaluation of a company’s health. With clearer data and metrics at hand, agencies can effectively reduce redundancies and strengthen the home care M&A due diligence process.

Beyond due diligence, technology additionally helps to support post-M&A integration activities by unifying processes across organizations. This leads to faster integration and consolidation, minimizing friction during the M&A process, and most importantly, ensuring the continuity of care for patients.

2. Improving Patient Outcomes

Patient care and care quality are top priorities for agencies, especially with the industry's growing emphasis on value-based care (VBC) as a metric for delivering high-quality care while controlling costs. Technologies such as risk stratification tools, analytics and reporting software, financial forecasting systems, and remote patient monitoring (RPM) solutions are playing a pivotal role in enhancing VBC practices.² By leveraging these tools, agencies can achieve greater efficiency, improve patient outcomes, and build stronger patient relationships. Potential buyers are drawn to VBC-focused agencies that adopt these innovations, recognizing their financial stability, predictable revenue streams, and long-term growth potential.

The increased use of telehealth, virtual care, is helping support VBC by expanding the reach of care to more individuals. Businesses’ budgets for telehealth and RPM is increasing by 50%, according to Health Recovery Solutions CEO Jarrett Baue.³ This expansion enables agencies to monitor patients more effectively, reduce hospital readmissions, and meet VBC metrics.

Additionally, regulatory changes that make telehealth reimbursements permanent for some services are creating a sustainable model for home health agencies to deliver cost-effective, high-quality care.⁴ By integrating these technologies into VBC frameworks, agencies not only achieve better patient outcomes but also position themselves for success in pre- and post-transaction M&A landscapes.

3. Bettering Workforce Retention and Training

Clinician retention and burnout remain among the biggest challenges facing the healthcare industry. Staffing shortages, high turnover rates, and clinician fatigue can significantly impact operational stability and patient care, creating hurdles for home health organizations during the M&A process. However, advancements in artificial intelligence (AI) are driving transformative care staff retention solutions.

High turnover rates are a red flag for potential buyers, signaling instability and increased operational costs. AI-powered tools can proactively address these issues by predicting workforce dissatisfaction, tracking performance metrics, and enhancing employee engagement. Buyers are particularly drawn to organizations that demonstrate the ability to deliver consistent, high-quality care and exhibit long-term sustainability.

By adopting innovative tools that improve agency efficiency and boost clinician retention, home care organizations not only enhance their operational effectiveness but also increase their value in a dynamic home care M&A market. A technology-driven approach helps streamline the consolidation process, ensuring smoother integration both pre- and post-merger.

The MHA Difference – Expertise, Insight, and Integration for M&A Success

In the fast-evolving home care industry, leveraging technology effectively can make the difference between a successful M&A transaction and a missed opportunity. From enhancing buyer attractiveness pre-merger to driving operational efficiency post-acquisition, technology is pivotal for home care agencies navigating the M&A process.

Maxwell Healthcare Associates (MHA) is the post-acute industry’s trusted partner, guiding buyers and sellers through the complexities of M&A in home care. Today, technology isn’t just a “nice-to-have”; it’s a “need-to-have” for home health and hospice agencies aiming to achieve sustainable success. That’s why MHA’s experts offer an in-depth Seller Agency Health Check, paired with cutting-edge, tech-enabled solutions to boost caregiver productivity and patient satisfaction.

Whether you’re looking to buy or sell your agency, MHA is here to put you ahead of the game. Explore our M&A support services and tech-enabled innovations, such as NOTIFYnana or nanaBEREAVEMENT— all designed to help you streamline operations, improve outcomes, and position you to command top dollar in the home care M&A market.

Let MHA’s expertise and tailored solutions set you on the path to success. Contact us today at [email protected], or visit www.maxwellhca.com to get started.

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