Jon Hill, a Managing Director from TripleTree, recently attended Home Care 100, an annual conference that “brings together industry trailblazers, innovators and critical thinkers to identify how organizations can seize this point in time to unleash our potential and accelerate the shift to person-centered care in the home.” Coming off his participation at the event, we sat down with Jon for a quick question and answer session to hear his perspectives about his time in Orlando.
Q: Jon, how would you characterize the sentiment you heard from other attendees about M&A activity across the home health sector?
A: Generally speaking, I would say there is pent-up demand to invest in high-quality home health assets – either as new platforms or accretive tuck-ins as part of a broader growth strategy. While the last 12+ months have been relatively quiet from an M&A perspective, I would say there is conviction about the potential for innovative solutions and an eagerness to deploy capital that advances home health specifically, and the broader care continuum more generally.
Q: Labor shortages have become a reality across the healthcare industry, only exacerbated by the demands and challenges of the pandemic. What did you hear from industry leaders and investors about this important topic?
A: There is no doubt the broad topic of labor was top of mind at Home Care 100, across multiple vectors: cost, turnover, and supply to name a few. My conversations at Home Care 100 affirmed what I’ve been hearing in other discussions: higher labor costs and turnover rates have been two of the primary operational challenges for home health providers over the last 12-18 months. For the first time in a long time, however, I also heard both short and long-term optimism about the labor force, fueled by providers that are experiencing some stability today and a belief that nominal improvements will continue in the coming year.
Q: Gatherings like Home Care 100 always spark discussion about what’s next. What did you hear about priorities and opportunities across the home health continuum?
A: One of the themes I heard consistently was the growing importance of personal care, both as a key component of a broader home health strategy and an opportunity for healthcare investors. The focus on personal care directly correlates with the attention and focus on family and professional caregivers, who are essential in the delivery of this more personalized type of care. There is also a recognition that today’s personal care market looks a lot like the highly fragmented skilled home health and hospice markets from 15-20 years ago – a market hungry for technology-enable infrastructure and management talent.
As I reflect on the totality of my time at Home Care 100, I sensed a focus on growth and a drive to create even more efficiency across the post-acute sector, and I left excited for an active year.
