Bass, Berry & Sims attorney David Cox provided insight for an article in Hospice News outlining how private equity (PE) firms are adapting roll-up strategies within the hospice sector in response to the uncertain economic environment.

“There have been a number of private equity firms that are using this period as an opportunity to focus on their existing portfolio companies,” David told Hospice News. “If you’re thinking about PE firms that are looking at getting into a particular sector and starting a roll-up strategy, 2023 was probably not the year that a number of them were pulling the trigger on that. There are challenges that are making those firms and those roll ups a little slower.”

David referenced several issues causing buyers concern, including “persistent labor pressures and reimbursement that may not be keeping pace with inflation.”

The full article, “PE Firms Adapting Hospice ‘Roll-Up’ Strategies,” was published by Hospice News on January 8 and is available online.