Q1 2025 Industry Trends: Home Health and Hospice FAQ Recap from SimiTree
As we enter Q2, SimiTree’s latest “State of the Industry” webinar brought together leading experts to break down Q1 trends, challenges, and strategic guidance for home health and hospice organizations. If you missed the session or want a quick refresher, here’s your recap—complete with FAQs and insights you can act on now.
To watch the full webinar, access our webinars page.
Meet the Panel
- Nick Seabrook, EVP (Moderator)
- Deb Grott, RN, COS-C, VP of Clinical Compliance
- Melynda Lee, MBA, MA, VP of Operations & Growth Consulting
- Mark Romano, VP of Mergers & Acquisitions
- Mike Simione, MBA, VP of Post-Acute Data Analytics
Top Q1 2025 Trends in Home Health and Hospice
1. M&A Activity Is Rising—but It’s Changing
Q: What are we seeing in the M&A market for home health and hospice?
A: According to Mark Romano and Deb Grott, there’s been a noticeable uptick in deal activity, especially in hospice and dual home health/hospice providers. However, buyer focus has shifted to smaller, owner-operated (“mom and pop”) agencies, as platform-level organizations become scarce.
Deb noted a growing trend of deals falling through due to compliance issues discovered during diligence, especially among smaller agencies lacking robust clinical oversight.
Takeaway: For agencies considering acquisition, now is the time to strengthen compliance and clean up documentation.
2. Key Risks to Watch
Q: What are the biggest risks home health and hospice agencies face right now?
A:
- PPEO and HOPE assessments are on the radar for compliance risk (Deb Grott)
- Medicare Advantage continues to impact financial performance through margin compression, billing challenges, and administrative overhead (Mark Romano). Read our ‘The Future of Managed Care: Strategies for success with Medicare Advantage’ webinar recap.
- Value-Based Purchasing (VBP) and its expanded measures are redefining quality-based reimbursement (Mike Simione)
- Hospice Cap and Medicaid changes could shift deal economics and operational strategy
Takeaway: Agencies must monitor payment model changes, especially around MA and VBP, to stay financially and clinically sustainable.
3. Growth Strategy: It’s Not All About M&A
Q: What organic growth strategies are working right now?
A: Melynda Lee emphasized focusing on strategic planning, local market data, referral source alignment, and service diversification. While M&A is heating up, Joint Ventures (JVs) and de novos are also viable for well-prepared agencies.
Takeaway: Growth doesn’t always require a transaction—internal optimization and data-driven strategy are key.
4. Recruitment & Retention: Stabilizing but Still Top Priority
Q: What workforce strategies are seeing traction?
A:
- Succession planning and remote leadership models are gaining popularity (Melynda)
- Technology, automation, and AI are improving operational efficiencies and staff satisfaction (Mike)
Takeaway: Agencies that modernize leadership structures and lean into tech are better equipped to retain top talent.
5. AI and Technology: Beyond the Buzz
Q: How is AI really impacting home health and hospice?
A:
- Enhancing patient experience and care personalization (Mike)
- Learn about improving your HHCAHPS scores with data.
- Accelerating EMR transitions to support scalable operations (Mark)
- Unlocking data-driven decision-making at all levels (Melynda)
Takeaway: Agencies that adopt AI strategically, not reactively, are seeing stronger ROI.
6. Looking Ahead to 2025–2026 Strategy
Q: What should agencies prioritize as administration changes take hold?
A:
- Anticipate slower compliance activity but prepare for long-term shifts (Deb)
- Stay ahead of MA policy changes and hospice payment models (Mark and Mike)
- Explore partnership alignment opportunities that foster resilience (Melynda)
Takeaway: Forward-thinking strategy, flexibility, and partner alignment will be critical for staying competitive in a changing regulatory environment.
Common Questions from Attendees
Q: What is the HOPE assessment and why does it matter?
A: The HOPE (Hospice Outcomes and Patient Evaluation) tool is a standardized assessment CMS is piloting. It aims to improve quality tracking but may increase documentation burden and compliance risk for unprepared agencies.
Q: How can we prepare for Value-Based Purchasing in 2025?
A: Understand the new claims-based measures like Discharge Function Score and Preventable Hospitalizations. Now is the time to audit your current performance and close care quality gaps.
Q: What makes smaller agencies more vulnerable in M&A deals?
A: Lack of clinical compliance programs and inconsistent documentation often create red flags during due diligence, derailing potential acquisitions.
Key Takeaways
- M&A is accelerating, but buyer expectations are shifting.
- Compliance risks, Medicare Advantage pressures, and VBP are top challenges.
- Technology and strategic growth—not just transactions—will define success.
- Agencies need to align long-term strategies with evolving regulations and partner ecosystems.
Want more guidance?
SimiTree’s experts are here to help with:
- Clinical compliance and HOPE readiness
- M&A strategy and due diligence. Read more about our Home health M&A services. Visit our Hospice M&A page.
- Financial consulting and budgeting
- Technology optimization and analytics
HOPE is almost here! On October 1st, you need to be ready. Don’t miss this complimentary webinar to understand how HOPE impacts hospice operations and how you can proactively adapt to ensure compliance and efficiency.
This webinar, led by SimiTree’s Claudia Baker, RN, MHA, HCS-D, HCS-O, and Maureen E. Kelleher, RN, MBA, will provide an in-depth look at what the HOPE tool entails, how it changes current processes, and strategies for successful implementation.
Register now to receive the recording and handout.