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Amedisys: Home Health, Hospice Solid, Reimbursement Worries
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On Jul 7, 2016, we issued an updated research report on Baton Rouge, LA-based Amedisys Inc. (AMED - Free Report) . The company provides home health and hospice services throughout the U.S. to a growing chronic, co-morbid, and aging American population.
In Home Health, Amedisys continued to generate strong organic growth in Medicare and non-Medicare revenues. In Hospice, the company successfully posted solid quarterly same-store admissions growth. Hospice growth prospects remain strong as CMS’ programs will help drive increased adoption of the hospice benefit.
Over the long term, the home health industry is poised for tremendous growth, driven by an aging U.S. population, patients’ desire for independence and home health as a cheaper care modality. Amedisys should continue to benefit from the aging demographics of the U.S. population and the need for higher acuity patients to be taken care of in a home nursing environment.
Recently, the Wall Street Journal published an in-depth article on hospice benefits, with particular focus on the increased Medicare expenditure for the same. The article also placed emphasis on factors driving growth for longer length of patients’ stay in hospice care. Both these facts reflect higher revenue opportunities for hospice care providers like Amedisys.
Currently, the company is developing and acquiring new business lines that will complement its existing home care and hospice business, and help seniors manage their health more effectively while staying at their homes longer. In line with this strategy, the company has closed two significant acquisitions over the past three months – the Infinity HomeCare acquisition on Dec 31, 2015 and the Associated Home Care acquisition on Mar 1, 2016.
With the company’s strategy currently aimed at expanding its capabilities of care that can be delivered at home, the Associated Home Care is its first acquisition in the personal care space. This buyout is also expected to expand Amedisys’ strong home health and hospice presence in Massachusetts.
On the flip side, with a few barriers to entry in the market for home health and hospice, Amedisys primarily faces tough competition from local privately and publicly-owned and hospital-owned health care providers. The company experiences significant reimbursement pressure as well.
Amedisys currently carries a Zacks Rank #2 (Buy).
Key Picks in the Sector
Some other well-ranked stocks in the medical sector are AAC Holdings, Inc. , LHC Group, Inc. and US Physical Therapy Inc. (USPH - Free Report) . All the three stocks hold the same Zacks Rank as Amedisys.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Amedisys: Home Health, Hospice Solid, Reimbursement Worries
On Jul 7, 2016, we issued an updated research report on Baton Rouge, LA-based Amedisys Inc. (AMED - Free Report) . The company provides home health and hospice services throughout the U.S. to a growing chronic, co-morbid, and aging American population.
In Home Health, Amedisys continued to generate strong organic growth in Medicare and non-Medicare revenues. In Hospice, the company successfully posted solid quarterly same-store admissions growth. Hospice growth prospects remain strong as CMS’ programs will help drive increased adoption of the hospice benefit.
Over the long term, the home health industry is poised for tremendous growth, driven by an aging U.S. population, patients’ desire for independence and home health as a cheaper care modality. Amedisys should continue to benefit from the aging demographics of the U.S. population and the need for higher acuity patients to be taken care of in a home nursing environment.
Recently, the Wall Street Journal published an in-depth article on hospice benefits, with particular focus on the increased Medicare expenditure for the same. The article also placed emphasis on factors driving growth for longer length of patients’ stay in hospice care. Both these facts reflect higher revenue opportunities for hospice care providers like Amedisys.
Currently, the company is developing and acquiring new business lines that will complement its existing home care and hospice business, and help seniors manage their health more effectively while staying at their homes longer. In line with this strategy, the company has closed two significant acquisitions over the past three months – the Infinity HomeCare acquisition on Dec 31, 2015 and the Associated Home Care acquisition on Mar 1, 2016.
With the company’s strategy currently aimed at expanding its capabilities of care that can be delivered at home, the Associated Home Care is its first acquisition in the personal care space. This buyout is also expected to expand Amedisys’ strong home health and hospice presence in Massachusetts.
On the flip side, with a few barriers to entry in the market for home health and hospice, Amedisys primarily faces tough competition from local privately and publicly-owned and hospital-owned health care providers. The company experiences significant reimbursement pressure as well.
Amedisys currently carries a Zacks Rank #2 (Buy).
Key Picks in the Sector
Some other well-ranked stocks in the medical sector are AAC Holdings, Inc. , LHC Group, Inc. and US Physical Therapy Inc. (USPH - Free Report) . All the three stocks hold the same Zacks Rank as Amedisys.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>