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Nursing Shortage Proves Critical to Home Health Industry - Wyatt Matas & Associates Finds Shortage Could Impede Growth of Industry by as Much as $

Washington, D.C. (PRWeb) February 12, 2007 -- Wyatt Matas & Associates released a study today showing that without significant changes made in training and recruiting nurses, the home health care industry could suffer a halt of growth up to $12 billion.

The study, which analyzes the skilled home healthcare industry's visits per patient statistics and potential demand over the next 15 years, finds that the industry could face a shortfall of almost 40% in available nurses.

"Some of our clients in rural markets have been experiencing lower operating margins due to higher labor and recruiting costs. In turn, these lower margins have impacted the valuations of those considering selling their agencies. We felt it was necessary to dig deeper into the cause of the trend and determine what the impact of the shortage has been and what it will be on the industry as a whole," said Chip Measells, partner at Wyatt Matas & Associates, "The home health care industry continues to see plenty of potential for growth, and the increasing demand for the service is impressive. Determining if the industry will be able to meet the demand is perplexing."

The study has a number of key findings, including:

•    The industry could face a shortage of almost 40% in available nurses. This translates into a potential reduction of industry growth by as much as $12 billion due to the shortage of available care givers and the lost opportunity to serve potential patients.

•    For every 25 referrals missed, Medicare agencies lose up to $50,000 in value.

•    Industry wide, the shortage in nurses could cause the industry to lose over $4 billion in potential market value. That is the equivalent to the combined market capitalization of the current top 5 largest home care companies.

To see the entire study, or to speak with one of our partners, please contact Anne Nicole at (202) 661-4691 or annen@wyattmatas.com.

About Wyatt Matas & Associates
Wyatt Matas & Associates is an investment-banking firm specializing in representing small and mid-sized companies in niche sectors in the health care and staffing industries. Wyatt Matas & Associates understands that the key to successful merger and acquisition management lies in the relationships created. By fostering relationships built with foundations of integrity and credibility, Wyatt Matas & Associates' team of experts has developed a distinctive reputation for client-oriented deal making. For more information, visit www.wyattmatas.com.

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