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Amedisys (AMED) Inks Deal to Extend Home Health Care Operations
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Amedisys, Inc. (AMED - Free Report) recently inked an agreement to buy regulatory assets that will enable the company to carry out home health care operations in Randolph County, North Carolina Notably, the deal is expected to close on Apr 30, 2021.
For investors’ note, Amedisys is a healthcare company offering personalized home health, hospice and personal care. It is focused on providing the best care to patients.
The latest development is likely to fortify Amedisys’ home health care offering.
More in the News
Per the terms of the agreement, Amedisys will buy the right to provide certified home health care services in Randolph County, North Carolina, and surrounding areas within a radius of 50-mile, including Montgomery County.
Notably, the service area will help enrollees gain access to 31,000 Medicare and Medicare Advantage. Upon closing of the agreement, Amedisys will cater to patients in the newly-acquired service area by opening a start-up care center.
Significance of the Deal
Amedisys is the second-largest provider of home health care, with 320 locations across 34 states in the United States. Per management, expansion of its footprint in the Home Health market will fortify Amedisys’ home health offering and establish the company as America’s solution for aging in place.
Developments in Home Health Segment
Per fourth-quarter 2020 earnings release, in home health, revenues rose $13 million or 4% compared to the prior year, driven by strong same-store total volume growth of 5% and total admissions growth of 6%.
Further, the company’s home health business achieved the quality of patient care Star QPC score of 4.33 and had 95% of care centers at four stars, and 65% of care centers at 4.5-plus stars.
Industry Prospects
The home health industry is poised for tremendous growth in the long term, driven by the aging U.S. population, patients’ desire for independence and home health as a reasonable care modality.
Per a report by Grand view Research, the global home healthcare market size was valued at $281.8 billion in 2019 and is expected to see a CAGR of 7.9% by 2027.
Considering the market growth, Amedisys’ efforts to expand its home health care offering are well-timed.
Price Performance
Shares of the company have gained 29.5% in a year’s time compared with the industry’s growth of 21.5%.
Zacks Rank and Key Picks
Currently, Amedisys carries a Zacks Rank #3 (Hold).
Asensus Surgical has a projected long-term earnings growth rate of 71%.
Cantel Medical has an estimated long-term earnings growth rate of 19%.
ConforMIS has a projected long-term earnings growth rate of 42%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
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Amedisys (AMED) Inks Deal to Extend Home Health Care Operations
Amedisys, Inc. (AMED - Free Report) recently inked an agreement to buy regulatory assets that will enable the company to carry out home health care operations in Randolph County, North Carolina Notably, the deal is expected to close on Apr 30, 2021.
For investors’ note, Amedisys is a healthcare company offering personalized home health, hospice and personal care. It is focused on providing the best care to patients.
The latest development is likely to fortify Amedisys’ home health care offering.
More in the News
Per the terms of the agreement, Amedisys will buy the right to provide certified home health care services in Randolph County, North Carolina, and surrounding areas within a radius of 50-mile, including Montgomery County.
Notably, the service area will help enrollees gain access to 31,000 Medicare and Medicare Advantage. Upon closing of the agreement, Amedisys will cater to patients in the newly-acquired service area by opening a start-up care center.
Significance of the Deal
Amedisys is the second-largest provider of home health care, with 320 locations across 34 states in the United States. Per management, expansion of its footprint in the Home Health market will fortify Amedisys’ home health offering and establish the company as America’s solution for aging in place.
Developments in Home Health Segment
Per fourth-quarter 2020 earnings release, in home health, revenues rose $13 million or 4% compared to the prior year, driven by strong same-store total volume growth of 5% and total admissions growth of 6%.
Further, the company’s home health business achieved the quality of patient care Star QPC score of 4.33 and had 95% of care centers at four stars, and 65% of care centers at 4.5-plus stars.
Industry Prospects
The home health industry is poised for tremendous growth in the long term, driven by the aging U.S. population, patients’ desire for independence and home health as a reasonable care modality.
Per a report by Grand view Research, the global home healthcare market size was valued at $281.8 billion in 2019 and is expected to see a CAGR of 7.9% by 2027.
Considering the market growth, Amedisys’ efforts to expand its home health care offering are well-timed.
Price Performance
Shares of the company have gained 29.5% in a year’s time compared with the industry’s growth of 21.5%.
Zacks Rank and Key Picks
Currently, Amedisys carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the broader medical space include Asensus Surgical, Inc. (ASXC - Free Report) , Cantel Medical Corp. and ConforMIS, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Asensus Surgical has a projected long-term earnings growth rate of 71%.
Cantel Medical has an estimated long-term earnings growth rate of 19%.
ConforMIS has a projected long-term earnings growth rate of 42%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>