Valuing Infusion Therapy Providers in 2025: A Comprehensive Guide for Owners, Operators, Investors, and M&A Professionals

The infusion therapy industry is experiencing strong growth due to increasing demand for specialty biologics, chronic disease management, and a continued shift toward lower-cost outpatient and home-based care settings. M&A activity has accelerated as private equity firms and strategic buyers seek scalable platforms with specialty pharmacy integration, in-network payer contracts, and strong referral pipelines. Valuations tend to be highest for providers offering a broad therapeutic mix, efficient clinical infrastructure, and the ability to expand regionally or through bolt-on acquisitions.

Whether you're preparing to sell an infusion therapy center or home-based service provider, evaluating a partnership opportunity, or seeking to benchmark financial performance, this article explores the key valuation methodologies, drivers, and risk factors that determine the value of an infusion therapy business.

I. Industry Context: Why Infusion Therapy is in Demand

The infusion therapy market has experienced significant growth in recent years, driven by the increasing prevalence of chronic diseases, advancements in healthcare technology and treatments, and the rising demand for home-based care. Infusion therapy, which involves the administration of medications or fluids directly into a patient’s bloodstream, is commonly used to treat conditions such as cancer, diabetes, infections, and autoimmune disorders. The shift toward outpatient and home infusion services has been a key trend, as it offers patients greater convenience, reduces hospital stays, and lowers overall healthcare costs. Advances in smart infusion pumps, wireless monitoring systems, and patient-controlled devices have improved the safety, efficiency, and accuracy of infusion treatments. Moreover, the increasing adoption of biologics and targeted therapies has expanded the scope of infusion therapy, particularly in oncology and immunology.  Industrywide demand is robust, with the U.S. ambulatory infusion market projected to grow at ~8.8% CAGR between 2025 and 2035, reflecting favorable site-of-care shifts and payer incentives toward lower-cost outpatient and home-based settings.

However, the market faces challenges such as high treatment costs, regulatory complexities, and the risk of infections associated with IV therapies. Despite these hurdles, the infusion therapy market is expected to continue its upward trajectory, supported by ongoing research and development, favorable reimbursement policies, and the growing emphasis on personalized medicine.

Key Growth Drivers

Key growth drivers for the industry include the following:

1. Rising Prevalence of Chronic Diseases: The increasing incidence of chronic conditions such as cancer, diabetes, and cardiovascular diseases is driving the demand for infusion therapies, which are often essential for managing these conditions.

   
   

2. Aging Population: The global aging population is more susceptible to chronic illnesses and requires frequent medical interventions, including infusion therapies, to manage their health, thus boosting market growth.

   
   

3. Technological Advancements: Innovations in infusion pump technology, including the development of smart pumps and wireless monitoring systems, are enhancing the safety, efficiency, and convenience of infusion therapies, driving market adoption.

   
   

4. Increasing Preference for Home Healthcare: There is a growing trend towards home-based infusion therapy, which offers patients greater comfort and convenience while reducing healthcare costs. This shift is supported by advancements in portable and user-friendly infusion devices.

   
   

5. Expansion of Healthcare Infrastructure: Improvements in healthcare infrastructure, particularly in rural markets, are increasing access to advanced medical treatments, including infusion therapies, thereby fueling market growth.

   
   

6. Government Initiatives and Reimbursement Policies: Supportive government initiatives and favorable reimbursement policies for infusion therapies are encouraging their adoption, contributing to market expansion.

   
   

Reimbursement Outlook

Medicare reimbursement under the Home Infusion Therapy (HIT) program will see a 2.4% increase in 2025, as finalized in the CMS change request issued in early 2025, representing modest payment growth aligned with budget-neutral geographic adjustment factors that remain flat year-over-year. Commercial payers are expected to continue exerting downward pressure through utilization management and pricing negotiations, though strong in-network contracts, particularly for high-margin biologic therapies, will remain a key driver of reimbursement stability and profitability.

Looking ahead to 2026, Medicare reimbursement changes are expected to be modest, with few material adjustments beyond CPI-indexed rates. The potential impact of broader Part B drug pricing reform under the Inflation Reduction Act could increase scrutiny on high-cost therapies, including certain combination biologics used in infusion. Commercial reimbursement remains likely to stay flat or decline slightly in aggregate, given projected medical cost trends, which will continue to constrain payer flexibility.

II. Top Reasons to Get a Valuation of Your Infusion Therapy Services Company

The following is a list of common reasons for commissioning a valuation analysis or appraisal of an infusion therapy business:

1. Preparing for a Sale or Strategic Partnership

• To establish a defensible asking price when marketing the business

• To evaluate offers from private equity, strategic buyers, or joint venture partners

• To understand how your company compares to market benchmarks

  
  

2. Internal Ownership Transition

• For buy-in or buy-out of partners

• To support fair and compliant equity allocation among owners

• To plan for generational succession or family transfers

3. Compliance with Healthcare Regulations

• To support Fair Market Value (FMV) and Commercial Reasonableness (CR) assessments required by Stark Law and Anti-Kickback Statute in deals involving ownership by other healthcare providers

• To document compliance in joint ventures, especially when there is a referral relationships (hospitals, ancillary service providers, or other physicians)

  
  

4. Estate & Tax Planning

• For gift or estate tax reporting to the IRS (especially for closely held businesses)

• To support asset protection strategies

• To plan for long-term wealth transfer or charitable contributions

  
  

5. Litigation or Dispute Resolution

• For divorce proceedings involving business asset division

• In shareholder or partnership disputes

• For economic damages assessments in legal proceedings

  
  

6. Business Planning & Strategic Growth

• To establish a valuation baseline for performance benchmarking

• To support capital raise, refinancing, or line-of-credit applications

• To identify value drivers and areas for operational improvement

III. Valuation Approaches for Infusion Therapy Providers

Valuation professionals typically apply three core methodologies to estimate the value of an infusion therapy business:

Income Approach (Discounted Cash Flow or Capitalization of Earnings)

This approach values a business based on the present value of its expected future earnings or cash flows. It’s most appropriate when a practice has a stable operating history and predictable future performance.

Key assumptions include:

• Normalized EBITDA or owner’s discretionary earnings

• Growth rate assumptions (organic and acquisitive)

• Risk-adjusted discount rate (typically 10–25% for infusion therapy)

• Capital expenditure needs

Pros: Based on the business’ future earning power

Cons: Sensitive to forecasting errors and discount rate subjectivity

Market Approach (Comparable Transaction Method, e.g. Market Multiples)

This method uses observed EBITDA multiples or revenue multiples from recent M&A transactions or public companies in the infusion therapy space. Typical multiples for small to medium -sized infusion therapy clinics are within the range of 5x to 10x EBITDA, depending on a variety of different factors.

This article includes more details and information about infusion therapy valuation multiples.

Pros: Easy to benchmark; useful in active M&A environments

Cons: Requires access to quality private market data and careful adjustment for company size, margin, geography, and a variety of other factors

Asset-Based Approach

Used only when the business is underperforming or being liquidated. The value is derived from the net assets (e.g., equipment, leasehold improvements) minus liabilities.

Pros: Useful in distressed scenarios

Cons: Intangible value of the company can be difficult to quantify under this method

IV. Key Value Drivers in Infusion Therapy Valuation

Several specific factors can materially influence an infusion therapy provider's valuation multiple:

Earnings Quality

Buyers and valuation professionals place significant emphasis on normalized EBITDA and / or cash flow. Adjustments often include:

• Owner compensation (if above/below market)

• Non-recurring revenue or expenses

• Related-party lease arrangements

• Post-transaction adjustments

• Out-of-period adjustments

Growth Potential

Discount rates and valuation multiples are a function of perceived risk and growth. Key considerations within the industry related to growth include the following:

• Rising Demand for Specialty Biologics and Chronic Care: Increasing use of infusion-based therapies for conditions like Crohn’s, MS, RA, and immunodeficiencies supports long-term, repeat patient volume and revenue stability.

  
  

• Shift from Hospital to Lower-Cost Sites of Care: Payers and providers are steering patients toward outpatient clinics and home infusion due to cost savings, creating strong tailwinds for ambulatory and home-based infusion businesses.

  
  

• Diverse and Expanding Referral Base: Relationships with multiple referring specialists (e.g., rheumatologists, gastroenterologists, neurologists) indicate a steady pipeline and opportunities to broaden service reach.

  
  

• Ability to Add High-Margin Therapies and Services: Expanding the formulary to include newer specialty medications or offering services like prior authorization support and patient education increases revenue per patient and enhances stickiness.

  
  

• Scalable Infrastructure and Geographic Growth Potential: Efficient scheduling, billing systems, clinical protocols, and pharmacy operations signal the business is ready to expand to new sites or regions—a major plus for private equity and strategic buyers.

Risk Factors

Key considerations within the industry related to risk include the following:

• Diverse and In-Network Payer Relationships: Having contracts with a range of commercial insurers and Medicare/Medicaid, especially in-network agreements, reduces reimbursement uncertainty and improves payment reliability.

  
  

• Strong Clinical Oversight and Compliance: Licensed medical staff, adherence to USP 797/800 standards, and proper documentation protocols minimize clinical liability and regulatory risk.

  
  

• High-Demand Therapeutic Focus Areas: Specializing in chronic and high-margin conditions like rheumatoid arthritis, multiple sclerosis, or Crohn’s disease ensures recurring revenue and long-term patient retention.

  
  

• Robust Referral and Prescriber Network: A diversified base of referring specialists (e.g., rheumatologists, neurologists, gastroenterologists) helps maintain steady patient flow and reduces dependency on any single referral source.

  
  

• Efficient Operations and Inventory Management: Reliable scheduling systems, tight inventory controls, and integrated billing processes reduce waste, improve margins, and signal operational maturity to investors.

  
  

V. Current Market Trends in Infusion Therapy M&A

The number of announced infusion therapy M&A deals grew significantly between 2019 and 2022, and nearly reached an all-time high in 2024 after a down year in 2023.

New platform creation exploded in 2024 with 11 announced platform deals, which was significantly more than in 2023 and 2022 combined. This level of new platform creation should lead to increased add-on activity in 2025 and beyond, which is a major headwind for overall deal volume.

While the infusion therapy industry remains fragmented with a large number of potential acquirers, the number of platforms that have made more than a handful of acquisitions over the past few years is fairly small, as the average deal size tends to be fairly large. By far the largest acquirer in terms of announced deals since 2019 is publicly-traded Option Care, with eight. However, this list is likely to look much different in five years.

Infusion Therapy EBITDA Multiple Trends

In terms of multiples, the trend is definitely pointing up, as recent platform deals have pushed 20x in recent years, up from the low double digits and even single digits in the early 2010s.

Factors Impacting the EBITDA Multiple for Infusion Therapy Providers

Acquisition multiples are a function of perceived risk and growth. Key considerations within the infusion therapy industry include the following:

• Site of Care Mix (Home vs. Ambulatory vs. Hospital): Infusion therapy providers focused on ambulatory infusion centers (AICs) or home infusion tend to command higher multiples than hospital-based or mixed models, due to cost-efficiency, scalability, and payer preferences. Payers actively steer patients toward lower-cost settings, increasing demand and margins for home and AIC-based providers over time.

  
  

• Specialty Drug Mix and Revenue per Patient: Providers with a focus on high-margin specialty biologics (e.g., immunoglobulins, monoclonal antibodies, or oncology drugs) typically receive higher multiples than those focused on lower-acuity hydration or antibiotic infusions. Revenue per patient encounter and drug mix (buy-and-bill vs. SP model) are major valuation levers.

  
  

• Payer Contracts and Reimbursement: Contracts with commercial insurers at favorable reimbursement rates significantly enhance profitability and predictability. Providers heavily reliant on Medicare/Medicaid or lacking in-network status with key payers are typically discounted by buyers.

  
  

• Scale, Geographic Footprint, and Market Share: Larger providers with multiple sites in high-growth MSAs or states, or those with a strong referral base from specialists, attract strategic and PE-backed buyers seeking platforms or add-ons. Buyers are paying premiums for scalable, de novo-ready businesses with defensible market positions.

VI. Final Thoughts: Keys to Maximizing Value

• If you're an infusion services business owner or executive planning to explore a sale or equity partnership, consider the following strategies to enhance your valuation:

  
  

  • Diversify Payer Mix and Secure In-Network Contracts: Establish contracts with multiple commercial insurers and reduce reliance on out-of-network or cash-pay revenue to stabilize reimbursements and attract risk-averse buyers.

    
    

  • Expand High-Margin Therapeutic Offerings: Focus on biologics and specialty medications in high-demand areas like immunology, neurology, and gastroenterology, which drive higher reimbursement and patient retention.

    
    

  • Develop Scalable Clinical and Operational Infrastructure: Implement robust systems for scheduling, inventory management, compliance, and billing, supported by experienced clinical staff to enable efficient, multi-site growth.

    
    

  • Strengthen Referral Networks and Provider Relationships: Build and maintain strong partnerships with specialists and health systems to drive consistent patient volume and reduce dependence on any single referral source.

    
    

  • Professionalize Financials: Buyers prefer accrual-based, GAAP-compliant statements.

  
  

  About HealthFMV

  HealthFMV specializes in appraising healthcare businesses and services arrangements, including infusion therapy providers.

  
  

  • Business Valuation: We perform independent, third-party valuations of healthcare businesses to document regulatory, tax, and financial reporting compliance, resolve ownership disputes, and help ensure both parties to the transaction are comfortable with the financial terms.

    
    

  • Transaction Advisory: We work with healthcare business owners, organization executives, providers, and their health lawyers to develop transaction structures and deal terms that further their business objectives while maintaining compliance with the complex healthcare regulatory environment.

    
    

  • Services Arrangements: We prepare fair market value and commercial reasonableness opinions for a variety of healthcare services arrangements including management services, hospital-based specialty stipends, case rates and PC/TC splits, block leasing, and shared savings distributions, among others.

  
  

  Contact Will Hamilton at whamilton@healthfmv.com with questions about our healthcare valuation services or to discuss your specific situation. Visit scoperesearch.co for more information about our healthcare M&A research services.