Home-based care M&A closings fell sharply in the third quarter of 2026, with 11 completed transactions, down from 23 in the previous quarter. However, pending transactions and continued buyer interest suggest the slowdown does not necessarily signal weakening demand.
A new report by Mertz Taggart recorded the decline in completed home health, home care, and hospice transactions. Cory Mertz, managing partner at Mertz Taggart, noted that the timing of closings affects quarterly numbers, and a light quarter does not mean buyers have lost interest.
Of the 11 deals closed in Q3, six were sponsor-backed strategic add-ons, two were new sponsor platform investments, and two were completed by other buyers. The third-quarter figures mark a 52.2% decrease compared to 23 transactions in Q2 2026. By sector, six home health deals closed, along with four in home care and six in hospice.
Some deals announced in Q3 did not close this quarter, including Addus HomeCare Corp.‘s planned acquisition of AccentCare‘s personal care division for roughly $275 million. Deaconess Associations Incorporated also closed its acquisition of 31 home health and hospice agencies from HCA Healthcare after the quarter ended.
Les Levinson, partner at Robinson+Cole, noted that the total number of deals could be higher than reported, as some deals may not have been publicly disclosed. The report described a more selective buying environment, with buyers taking a closer look at agencies’ compliance histories, documentation, and leadership depth during due diligence.
Cory Mertz added that buyers are paying premiums for quality agencies that have strategic value to them. For an owner, the important distinction is that buyer demand is selective, not absent. Mertz also noted that agencies do not need national reach for the right buyer to find them strategically important, as reliable financials and sound compliance can establish the quality of the business.
