Home health transactions in the third quarter of 2025 maintained the pace seen since the start of the year, with seven transactions in the three months, according to Corey Mertz, managing partner at Mertz Taggart. That matches seven in the second quarter and down just one from eight in the first quarter of the year.
Regulatory uncertainty, particularly concerning CMS’s proposed rate cut of 6.4%, has remained at the forefront in the minds of acquirers when evaluating deals in the home health space, Mertz notes in an Oct. 15, 2025, blog post.
However, there is still considerable demand for quality assets in a space that’s historically had strong and consistent deal volume, Mertz noted.
“Although buyers are well-aware of the risks involved with a potentially large reimbursement cut, high-quality assets are still in strong demand,” he says. “Of the major home-based care providers who are building a continuum of care in their efforts to negotiate value-based payment arrangements with the payors, skilled home health is the most prominent of the service lines.”