In May 2026, the Centers for Medicare & Medicaid Services (CMS) announced a nationwide six-month moratorium on new Medicare enrollments for home health and hospice providers. The action was implemented as part of a broader effort to combat fraud, waste, and abuse within the healthcare system.

While much of the industry’s attention has focused on the regulatory implications, the moratorium will also have a significant impact on mergers and acquisitions activity across the home health and hospice sectors.

In a Nutshell: What Does the CMS Moratorium Mean for Home Health and Hospice Agency Owners?

For agency owners, the CMS moratorium is expected to increase buyer demand for existing Medicare-certified home health and hospice providers by limiting opportunities for de novo expansion. As a result, many providers considering a sale are expected to experience increased acquisition interest, a more competitive buyer process, and stronger valuation multiples as buyers compete for a limited supply of acquisition opportunities.

The CMS Moratorium

Effective May 13, 2026, CMS suspended the enrollment of new Medicare-certified home health agencies and hospices nationwide for an initial six-month period. In addition to preventing the enrollment of new providers, certain ownership changes that would require a new Medicare enrollment may also be affected.

The stated goal is to prevent fraudulent operators from entering the Medicare program while CMS strengthens oversight and enforcement efforts.

Regardless of the policy’s long-term effectiveness, the immediate result is clear: the creation of new Medicare-certified home health and hospice agencies has been curtailed.

Why Does the CMS Moratorium Matter for Home Health and Hospice M&A?

Historically, many strategic buyers and operators have relied on a combination of acquisitions and de novo expansion to enter new markets and grow their footprint.

With de novo growth temporarily restricted, acquisition essentially becomes the only viable path to expansion where a new Medicare provider number is required. For buyers that were previously evaluating whether to build or buy, the moratorium essentially eliminates the “build” option.

Organizations seeking to enter new geographies, add census, expand referral relationships, or increase market share may now be forced to look more aggressively at existing Medicare-certified home health and hospice providers. Simply put, existing assets will become increasingly sought after and more valuable as the supply of new Medicare enrollments remains restricted.

Increased Buyer Competition

The home health and hospice M&A market was already experiencing strong buyer demand in the first half of 2026.

The long-term fundamentals driving home health and hospice M&A activity remain exceptionally strong. An aging population, growing demand for care at home, and continued pressure to reduce healthcare costs are driving strategic buyers to pursue expansion while attracting new private equity and financial investors to the sector.

At Stoneridge Partners, we have already seen increased acquisition interest from strategic buyers whose home health and hospice de novo expansion plans were placed on hold following the CMS moratorium. As a result, many of these organizations have shifted their growth strategies toward acquiring existing Medicare-certified providers.

As a result, sellers are likely to experience:

• Increased inbound buyer interest
• More competitive bidding environments
• Larger buyer pools
• Greater urgency among strategic acquirers seeking expansion

While not every agency will see a material increase in valuation, high-quality providers operating in attractive markets will likely benefit from heightened competition among buyers.

Impact on Home Health and Hospice Valuations

Valuations are ultimately driven by many factors, including:

• Financial performance
• Size
• Growth trends
• Referral diversification
• Clinical quality
• Market position
• Payer mix
• Geographic location

However, buyer demand remains one of the most important drivers of transaction multiples.

The CMS moratorium is expected to place upward pressure on both home health and hospice valuations by increasing competition among buyers seeking Medicare-certified providers. When demand rises and available acquisition targets remain limited, valuations often benefit.

The moratorium does not automatically increase the value of every agency, but it does create an environment where buyers will face pressure to pay a premium for established providers that offer immediate access to a Medicare-certified home health or hospice in a specific location.

For agencies in markets where growth opportunities are scarce, as has been demonstrated in CON states already, the impact will be particularly meaningful.

Is Now a Good Time to Sell a Medicare-Certified Home Health Agency or Hospice?

Every owner’s situation is different, but the current environment presents a compelling opportunity for many providers.

Owners who have been considering a sale within the next two to three years may benefit from evaluating their options sooner rather than later.

M&A processes often take six to twelve months to complete. Beginning conversations now will allow owners to understand their value, assess buyer interest, and determine whether current market conditions align with their personal and financial objectives.

Importantly, going to market does not obligate an owner to sell. It simply provides visibility into what opportunities may exist.

Looking Ahead

The long-term impact of the CMS moratorium remains uncertain. The initial six-month period could be extended, modified, or allowed to expire depending on CMS’s findings and enforcement efforts.

What is already clear, however, is that the moratorium has introduced a new dynamic into the home health and hospice acquisition market.

As buyers face limited opportunities for de novo expansion, existing Medicare-certified providers are already becoming increasingly attractive acquisition targets.

For home health and hospice agency owners, this may represent one of the most favorable environments in recent years to explore a sale, evaluate market interest, and better understand the value of their business. Therefore, owners considering the sale of a home health or hospice agency should closely monitor the evolving impact of the CMS moratorium, as increased buyer demand and stronger valuation dynamics may create a unique window of opportunity in the M&A market.

About Stoneridge Partners

Stoneridge Partners is a leading M&A advisory firm specializing in home health, hospice, behavioral health, and home care transactions nationwide. If you are considering the sale of a home health or hospice agency, contact our team for a confidential valuation and discussion of current market conditions affecting your business.