Are PE Firms Still Buying Home Health Care Businesses in 2026?

Yes - private equity is still actively buying home health care businesses in 2026, but with more discipline than during the post-pandemic surge. Medicare-certified agencies under PDGM are trading at 8.0x-11.0x EBITDA at the $5M-$15M EBITDA level and 9.0x-12.0x at $15M-$50M, while non-certified agencies land closer to 3.0x-5.0x. The clearest signal of continued PE appetite: Kinderhook Industries took Enhabit private for $1.1 billion in May 2026 at 10.2x on $108M of EBITDA.

Home Health Snapshot

  • Medicare-certified: 8.0x-11.0x EBITDA ($5M-$15M), 9.0x-12.0x ($15M-$50M)
  • Non-certified: 3.0x-5.0x EBITDA
  • Small certified agencies: 5.0x-8.0x EBITDA
  • Landmark 2026 deal: Enhabit take-private at 10.2x

Which buyers are active right now?

The platforms have not slowed down. BrightSpring and Addus HomeCare continue integrating acquisitions and favor cash-heavy structures for footprint-expansion deals. Beyond them, Pennant, Compassus, TowerBrook, Webster Equity, and Kinderhook are all deploying capital, and the space still counts more than two dozen active PE-backed roll-up platforms. What has changed is underwriting rigor: buyers now weight sustainable margins, compliance readiness, and operational stability over raw growth. A Medicare-certified agency with clean surveys, stable clinician staffing, and reconciled billing is exactly what these platforms compete for, and competition is what produces the top of the multiple range.

What is driving continued demand?

The demographics are relentless. An aging population, the ongoing migration of care into the home, and demand for cost-effective post-acute models keep both strategics and PE at the table. That said, certification status is the dividing line in value - Medicare-certified cash flow commands a materially higher multiple than private-pay non-certified revenue at the same scale, because it is stickier and more defensible. If you are weighing an exit, my overview of home health care valuation lays out how certification, size, and payer mix interact, and my deeper look at what a home health business is worth shows how those factors land on a final number.

Find Out What Your Home Health Business Is Worth

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Frequently Asked Questions

Which buyers are active in home health right now?
The platforms have not slowed down. BrightSpring and Addus HomeCare continue integrating acquisitions and favor cash-heavy structures for footprint-expansion deals. Beyond them, Pennant, Compassus, TowerBrook, Webster Equity, and Kinderhook are all deploying capital, and the space still counts more than two dozen active PE-backed roll-up platforms. What has changed is underwriting rigor: buyers now weight sustainable margins, compliance readiness, and operational stability over raw growth. A Medicare-certified agency with clean surveys, stable clinician staffing, and reconciled billing is exactly what these platforms compete for, and that competition is what produces the top of the multiple range rather than the middle.
What is driving continued demand for home health?
The demographics are relentless. An aging population, the ongoing migration of care into the home, and demand for cost-effective post-acute care models keep both strategic acquirers and private equity at the table. Certification status is the dividing line in value: Medicare-certified cash flow commands a materially higher multiple than private-pay non-certified revenue at the same scale, because it is stickier and more defensible under PDGM. The 2026 environment is more disciplined than the post-pandemic transaction boom, with buyers emphasizing margin sustainability and compliance over pure growth, but the structural tailwinds behind home health mean well-run certified agencies continue to attract genuine competition.