How to sell a home care agency
Home care has no Medicare provider agreement to transfer, so these are usually the fastest healthcare sales to close. Buyers focus on billable hours, caregiver retention, payer mix, and whether your Medicaid and managed care contracts move with the business.
What buyers look at first
- Billable hours per week, and the trend over the last 24 months
- Gross margin per hour after caregiver wages and payroll taxes
- Caregiver turnover compared with your local market
- Payer mix: private pay, Medicaid waiver programs, managed care plans, VA
- Client concentration: how much revenue sits with your largest clients
- How much of scheduling, billing, and payroll runs without the owner
Contracts and licensing
Your state home care license usually moves through a change of ownership filing. Medicaid waiver contracts and managed care agreements often need the payer's consent or re-credentialing, and that is usually what sets the closing date.
Read each contract for assignment terms before you list. A buyer will ask, and finding a problem late is how deals stall.
Documents to prepare
- Three years of financial statements and tax returns, plus year to date
- Weekly billable hours by payer for the last 24 months
- Caregiver headcount, tenure, and pay rates
- Copies of every payer contract and your state license
- Office lease and any EVV or scheduling system contracts
Timeline and confidentiality
Home care sales often close in three to six months. Caregivers and clients are the business, so keep the sale confidential until you are ready to tell them. A good broker markets the agency without its name and screens every buyer before they learn more.
For a confidential estimate of what your agency would sell for, request a free valuation.