The post-acute healthcare sector stands at a critical juncture as we progress through 2025, with mergers and acquisitions activity reflecting both the enduring fundamentals driving consolidation and the mounting challenges reshaping deal dynamics. From home health and hospice services to skilled nursing facilities and rehabilitation centers, the post-acute care market presents a fascinating study in contrasts—robust demographic tailwinds colliding with regulatory headwinds, private equity enthusiasm tempered by valuation compression, and strategic imperatives balanced against operational realities. The best summation is “Market Activity – Resilience Amid Headwinds.
2025 Deal Volume and Value Trends
The post-acute healthcare sector has demonstrated remarkable resilience in M&A activity, with home health, hospice and senior living organizations seeing high merger and acquisition activity in 2025 compared with hospitals and health systems. Through May 15, 2025, the healthcare services market recorded 445 announced transactions, driving the last-twelve-month volume to 1,265 deals (down 7% versus 2024’s 1,355) and disclosed value to about $64 billion.
The sector’s performance reflects broader healthcare M&A trends while maintaining distinct characteristics. Healthcare proved to be a resilient market for mergers and acquisitions in 2024, despite deal volume declining 9% from 2023, with 1,373 health services deals in 2024 compared to 1,506 the year before. However, this represents a substantial elevation from pre-pandemic levels, with activity remaining nearly 70% higher than historical baselines.
Subsector Performance
Within the post-acute care universe, different segments are experiencing varying levels of activity:
- Home Health and Hospice: Volume is down.
- Skilled Nursing : Skilled nursing facilities show some EBITDA multiple compression. Part of the problem is that there has been a tremendous amount of consolidation, so fewer deals and fewer good deals are on the market.
- Assisted Living and Senior Housing: One of brighter spots in the sector as a lot of individual owner facilities are coming to market as a fragmented market continues to consolidate.
- Hospice Outlook: Though many expect a hospice M&A rebound in 2025, the volume has been slow, albeit steady.