Hospice Care Business Valuation
Hospice Care Business Valuation Calculator & Exit Planning Built for Hospice Owners
We built one platform that tracks your hospice agency'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 Hospice Owners Have No Idea What Their Agency is Actually Worth
Current Hospice Care Valuation Multiples (2026)
Hospice valuations are among the highest in healthcare services due to Medicare reimbursement and demographic tailwinds. Here's the market:
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 No more waiting for annual appraisals or paying $15K+ for outdated reports.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 Hospice Care Value
Your compassionate care matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Average Daily Census (ADC)
Stable, Growing Census
ADC is the fundamental metric of hospice economics—how many patients are you serving on any given day? Higher census means more revenue capacity and operational scale. Buyers want to see stable or growing ADC trends over 12-24 months. Declining census raises serious concerns about referral relationships and market position.
Declining ADC = buyer concern
Referral Sources
Diversified: Hospitals, SNFs, Physicians
Where do your patients come from? Agencies dependent on one or two referral sources face concentration risk. Diversified referrals from hospitals, skilled nursing facilities, physicians, and community sources demonstrate sustainable patient flow. Document your referral relationships; they're your primary growth engine.
Concentrated referrals = vulnerable
Length of Stay (LOS)
Appropriate LOS Metrics
Average length of stay affects both revenue and regulatory scrutiny. Too short may indicate late referrals; too long invites audit risk. Buyers evaluate LOS carefully against Medicare benchmarks. Understanding your LOS patterns and their drivers is essential for valuation discussions.
Outlier LOS = regulatory questions
Regulatory Compliance
Clean Surveys, No Sanctions
Hospice operates under intense CMS oversight. Clean survey histories, no sanctions, proper documentation, and compliance with conditions of participation are non-negotiable. Any compliance issues—current or historical—create deal risk that sophisticated buyers will either heavily discount or walk away from entirely.
Compliance issues = deal killer
Payer Mix
Medicare Advantage Strategy
Traditional Medicare is the primary payer, but Medicare Advantage penetration is growing. Understanding your MA payer mix and having contracts with major MA plans positions you for market shifts. Commercial and Medicaid diversification provides additional stability beyond pure Medicare dependency.
No MA contracts = future risk
Clinical Team
Stable RN/Aide Retention
Hospice depends on nurses, aides, chaplains, and social workers who provide bedside care. Staff retention in a challenging labor market signals good management and culture. High turnover creates care quality concerns and ongoing recruiting costs that buyers will factor into valuations.
High turnover = operational strain
How to Value a Hospice Care Business
The U.S. hospice industry includes approximately 5,000 hospice providers generating over $25 billion in annual revenue. Hospice care is one of the fastest-growing segments of healthcare, driven by the aging population and Medicare's hospice benefit.
EBITDA is the primary valuation method for hospice agencies. Hospice businesses typically sell for 6.0x to 12.0x EBITDA, among the highest multiples in healthcare services. Smaller agencies may use SDE multiples of 3.0x to 5.0x.
Revenue multiples for hospice agencies generally range from 1.0x to 2.5x annual revenue. Agencies with average daily census (ADC) above 100 patients command premium multiples because they demonstrate scale and operational maturity.
The unique valuation factors for hospice are the average daily census, median length of stay, and compliance record. ADC is the most critical metric — it represents the number of patients receiving hospice services on any given day, and it directly drives revenue. Median length of stay is scrutinized because excessively long lengths of stay trigger Medicare audit risk (hospice fraud has been a major enforcement focus). Agencies with appropriate lengths of stay, clean survey histories, and strong referral relationships with hospitals, skilled nursing facilities, and physicians command maximum valuations.
Hospice M&A has been extremely active, with Amedisys, VITAS, Kindred, and numerous PE-backed platforms driving consolidation. The combination of demographic tailwinds and Medicare's per-diem reimbursement model makes hospice one of the most attractive healthcare investments. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do hospice agencies sell for?
Hospice agencies typically sell for 5.0x – 9.0x SDE or 8x – 16x EBITDA, among the highest in healthcare. Agencies with strong ADC, clean compliance, and diversified referrals command premium multiples.
How does average daily census affect hospice value?
ADC is the fundamental metric. Higher census means more revenue capacity. Buyers want stable or growing ADC trends. Declining census significantly impacts valuation.
Who buys hospice agencies?
Large hospice consolidators (VITAS, Amedisys, etc.), PE-backed hospice platforms (very active), hospital systems adding post-acute services, and regional hospice companies expanding.
How important is regulatory compliance?
Critical—it's often a deal breaker. Clean surveys and no sanctions are non-negotiable. Compliance issues create risk that sophisticated buyers will heavily discount or walk away from.
Does referral diversification affect hospice value?
Yes. Agencies dependent on one or two sources face concentration risk. Diversified referrals from hospitals, SNFs, physicians, and community demonstrate sustainable growth.
What's the fastest way to increase my hospice value?
Three high-impact moves: 1) Grow and stabilize ADC through referral development, 2) Maintain impeccable regulatory compliance, 3) Diversify referral sources beyond any single relationship.