As we approach the three-year anniversary of the implementation of the “36-Month Rule” for home health transactions, it is a good time to review some of the ongoing and new issues in connection with the acquisition of home health agencies. Notwithstanding some of the regulatory hurdles that have arisen, the market for home health care services continues to be attractive, and consolidation appears to be a continuing trend.
While there are any number of current trends and issues that merit discussion, there are several that deserve special attention at this time.
2. OIG Work Plan issues for 2013
The Office of Inspector General (OIG) published a Work Plan 2013 outlining a variety of issues related to home health services where it plans to increase regulatory focus. While these may not specifically impact a particular transaction, they should be considered as due diligence items that a purchaser may want to review as part of an acquisition.