On this episode of The Banker's Corner, McGuireWoods' Geoff Cockrell invites Barry Freeman, Managing Director of Lincoln International’s U.S. healthcare industry team, to discuss trends and investing opportunities in home health, hospice, and palliative care.

Barry shares his in-depth knowledge of the home healthcare space including the key takeaways he learned at the recent Home Care 100 industry event.  

From labor shortages making it difficult to find trained professionals to an increase in demand as care at home becomes the future of the industry, there is currently a lot of attention on the home healthcare space. 

While the industry is not without its challenges, the increased focus on technological advancements has made it more attractive for investors — by providing better solutions within the industry, investors can more accurately predict risk.

Barry walks listeners through changes in the industry and where he believes the sector is headed. He also discusses opportunities for providers to get more involved in the space. It’s clear that the industry is shifting to more home-based care and Barry believes the trend isn’t going anywhere anytime soon. 

Meet Your Host

Name: Geoffrey Cockrell

What he does: Geoff is the Chair of McGuireWoods’ private equity group and serves on the firm's Board of Partners; he has extensive experience in mergers and acquisitions, especially in the healthcare space.

Organization: McGuireWoods

Connect: LinkedIn

Featured Guest

Name: Barry Freeman

What he does: Barry co-leads Lincoln’s U.S. healthcare industry team and provides M&A advisory services for healthcare payors, providers, and healthcare IT companies. He has over 25 years of experience in both investment banking and principal investing.

Organization: Lincoln International

Connect: LinkedIn

Notes From the Banker’s Corner

Top takeaways from this episode

★   Investors are interested in home healthcare. According to Barry, the recent Home Care 100 Conference had record-breaking attendance, which reflects the renewed interest the sector is seeing from investors.

★   Labor shortages in the industry are a long-term structural issue. The number one concern for companies in the home healthcare industry right now is the labor shortage. Barry believes this is a structural issue that will persist after the pandemic has ended. He predicts that we can expect to see state and federal support for the in-demand industry. 

★   Advances in technology have made it easier to predict and manage risk. Despite the labor challenges in the industry, increased demand for home healthcare services combined with technological advancements is making it easier to manage risk and keeps investors interested. 

 

Episode Insights

[02:22]: Industry trends: Barry recently attended the Home Care 100 Conference. He shares his learnings on the podcast. 

[03:22] A labor shortage crunch: Barry discusses the shortage of nurses and home care providers. He believes it is the current number one concern for businesses in the industry.

[05:22] Demand for in-home care: The stories of death and disruption throughout the pandemic have resulted in an increased demand for in-home care. 

 [08:49] Technology investment provides an opportunity: Barry has observed how the investment in technology is creating new opportunities for those in the industry. 

[11:18] Market opportunity for in-home care: Barry breaks down the different segments of the industry and reviews why he sees an opportunity for growth in the home care space over the traditional institutional providers. 

[13:27] Home-based models are in high demand: Barry shares that while there is market growth across the board in healthcare, he sees the greatest demand in the at-home care space. 

[13:59] Investor value: Investors can find value in the market by focusing on providers who are offering a continuum of care for patients as their needs progress through different stages. 

[15:49] Strong appetite for acquisitions: Barry talks about how acquisition has been one of the main catalysts for growth in the industry. He sees this trend continuing in 2022 with some investors looking to mix in organic growth alongside their acquisitions.

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