Medicaid 80/20 rule could drive surge in home care deals

Medicaid 80/20 rule could drive surge in home care deals 
Modern Healthcare; by Diane Eastabrook; 4/10/24 
Private equity firms and large home care companies could soon be going head to head to buy smaller personal care operators expected to exit the industry because of a new regulation. The potential for industry consolidation stems from the Centers for Medicare and Medicaid Services’ Ensuring Access to Medicaid Services rule that will require home care companies to spend 80% of Medicaid reimbursements on caregiver wages. Mergers and acquisitions advisers predict the so-called 80/20 rule, finalized April 22, could prompt many smaller operators to sell.