Home-based care M&A craters 41% in Q2 2026 as fraud crackdown bites

Plus: CY2027 home health rule hides a temporary 3% PDGM clawback behind a 2.4% raise. The day's rules, money, and enforcement, sourced and tiered below.

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Plus: CY2027 home health rule hides a temporary 3% PDGM clawback behind a 2.4% raise. The day's rules, money, and enforcement, sourced and tiered below.

American Health Intel
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The Service Line Friday, July 24, 2026
Home-based care M&A craters 41% in Q2 2026 as fraud crackdown bites
Plus: CY2027 home health rule hides a temporary 3% PDGM clawback behind a 2.4% raise. The day's rules, money, and enforcement, sourced and tiered below.
Report  Confidence: High
Home health and hospice mergers, the deals where companies buy or combine with each other, cratered in Q2 2026: just 16 closed, down 41% from Q1's 27 and 45% from a year earlier.
Deal advisory firm Mertz Taggart blames the fraud takedowns, the hospice 36-month ownership rule, and the new Medicare enrollment moratorium for making deals harder to close.
Why it matters
Fewer deals closing means less consolidation and slower change in who owns your local home health or hospice agency right now.
Sources: Homecaremag
Rule  Confidence: High
The home health payment agency CMS proposed a 2027 pay rule that raises rates 2.4% on paper, but buries a temporary 3% clawback for what it calls billions in past overpayments.
CMS wants to recoup an estimated $4.9 billion in cumulative overpayments from CY2020-2025, but for the first time since CY2022 it dropped the permanent behavioral pay cut. Comments due Aug 31, 2026.
Why it matters
Watch whether the temporary 3% clawback survives to the final rule, since it would offset most of the headline payment increase for home health agencies.
Also today
CMS commits to 60 days notice before extending hospice/home health enrollment freeze Read
General Atlantic, Kinderhook, and Deacon Associates lead Q2's biggest home-based care deals Read
Hospices get FY2027 payment-penalty letters over 2025 HOPE tool compliance Read
19.1%: the national hospice live-discharge rate operators should be tracking Read
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