What home health buyers check first
- Payer mix across Medicare, Medicaid programs, insurance and private pay
- Referral sources and how many come from one hospital or doctor group
- Caregiver and nurse turnover over two years
- Survey, audit and complaint history
- Licenses, certifications and how a change of owner affects them
Two Different Businesses Under One Name
Skilled home health, with nurses and therapists billing Medicare, and non medical home care, with caregivers helping with daily living, are valued differently.
Skilled agencies carry more regulation and often higher prices. Private pay home care is simpler and depends more on caregivers and local marketing.
Be clear about which you are, and show revenue by service line.
Payer Mix Shapes the Price
A buyer will break your revenue down by who pays. Heavy reliance on one program means exposure to its rate changes and audits. A balanced mix with private pay clients who stay for years tends to support a stronger multiple.
See how buyers price a small business for how risk turns into a multiple.
Referrals and Relationships
Many agencies live on referrals from hospitals, rehab centers, senior living communities and doctors. A buyer wants those relationships to belong to the agency, through staff who manage them, not just to the owner.
Banner and HonorHealth facilities and the many senior communities in Mesa and Gilbert are common sources.
Caregivers Are the Product
Turnover is the constant worry in home care. Show how long your caregivers and nurses stay, how you recruit and what you pay. A stable staff with a strong scheduler or administrator makes the agency far easier to transfer.
Compliance and Change of Ownership
State licensing and, for skilled agencies, Medicare certification come with rules about changes in ownership.
The steps and timing differ by license type and deal structure, and a stock sale is handled differently from an asset sale. Start with a healthcare attorney well before closing.
Clean survey results, organized patient records and current policies help a buyer get comfortable fast.
Who Buys Agencies Here
Regional and national home care brands buy to enter or grow in the East Valley. Hospice and skilled nursing groups add home health to round out services. Individual buyers, often nurses or former administrators, look at smaller private pay agencies.
Get Ready Early
- Revenue by payer and by service line for three years
- Referral source reports
- Staff rosters with hire dates and credentials
- Survey, audit and complaint files
More on that list is on preparing your company for sale. For payroll and state tax accounts at closing, see Arizona unemployment account transfer when a buyer takes over.
For a confidential price range, send the form or call (480) 555-0124.