Home Healthcare Business Valuation
Home Healthcare Business Valuation Calculator & Exit Planning Built for Agency Owners
We built one platform that tracks your home healthcare business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Home Healthcare Owners Have No Idea What Their Business is Actually Worth
Current Home Healthcare Valuation Multiples (2026)
Home Healthcare values are strong due to increased buyer demand from healthcare consolidators, PE-backed platforms, larger agencies. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Home Healthcare Business Value
Revenue and earnings are the two most influential factors in your home healthcare business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Medicare Certification
Medicare Certified
Medicare/Medicaid certification opens higher-margin patient populations. Certified agencies can serve higher-acuity patients with better reimbursement—non-certified agencies are limited to private pay.
Non-certified = limited scope
Survey Results
Clean Surveys
Diversified payers reduce risk from rate changes or policy shifts. Balanced payer mix means no single payer contract change devastates the business.
Deficiencies = compliance risk
Payer Mix
Diverse Payers
RN and therapy staff enable higher-acuity services. Agencies with nursing and therapy capabilities serve more complex patients with higher reimbursement rates.
Single-payer = rate risk
Service Lines
Skilled + PCA
Strong referral relationships with hospitals and physicians drive patient volume. Referral sources are critical—agencies with diverse referral relationships have predictable patient flow.
Single-service limits growth
Staff Credentials
Full Clinical Staff
Proper documentation and compliance programs protect against audits. Home health faces significant compliance scrutiny—strong programs reduce audit risk that can create huge liabilities.
Understaffed = capacity constraints
Referral Sources
Hospital + SNF
Census growth and caregiver retention show operational health. Growing patient census with stable staff indicates a healthy operation that can scale.
Single referrer = concentrated risk
How to Value a Home Healthcare Agency
The U.S. home healthcare industry includes over 30,000 agencies generating approximately $120 billion in annual revenue. Home health is one of the fastest-growing healthcare sectors, driven by the aging Baby Boomer population and Medicare's emphasis on post-acute home-based care.
EBITDA and SDE multiples are both used depending on agency size. Home healthcare agencies typically sell for 2.5x to 5.0x SDE, or 5.0x to 10.0x EBITDA for Medicare-certified agencies with strong census numbers. The wide range reflects the significant difference between licensed-only agencies providing private-duty care and Medicare-certified agencies billing directly to CMS.
Revenue multiples for home healthcare agencies generally range from 0.50x to 1.0x annual revenue. Medicare-certified agencies command the upper end because Medicare reimbursement, while heavily regulated, represents a reliable federal payer source.
The critical valuation factor in home healthcare is the Medicare certification and payer mix. A Medicare-certified agency has undergone rigorous federal surveys and built the infrastructure (OASIS documentation, billing systems, clinical protocols) required to bill Medicare — creating significant barriers to entry. Non-certified agencies providing private-duty or Medicaid personal care services are less complex but also less valuable. Staffing stability is also crucial — nurse and aide recruitment is the industry's biggest operational challenge.
Home healthcare M&A has been extremely active, with hospital systems, PE firms, and national providers acquiring agencies to capture the growing home-based care market. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do home healthcare businesses sell for?
Most home healthcare businesses sell for 2.5x – 4.0x SDE or 0.5x – 0.9x annual revenue. However, the range is wide. Companies with strong medicare certification can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does medicare certification affect my company's value?
Medicare Certification is one of the biggest value drivers for home healthcare businesses. Healthcare consolidators, pe-backed platforms, larger agencies specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my home healthcare business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your medicare certification, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys home healthcare businesses?
Common buyers include healthcare consolidators, PE-backed platforms, larger agencies, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for home healthcare businesses?
Most home healthcare businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.5x – 0.9x) are sometimes used as quick reference.
What's the fastest way to increase my home healthcare business value?
The fastest improvements typically come from: 1) Improving your medicare certification to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.