Amedisys' ( AMED Quick Quote AMED - Free Report) company, Contessa, which is a high-acuity home care provider and the pioneer of the Home Recovery Care model, recently announced a partnership with Baylor Scott & White Health to create a new model of at-home care for patients. This initiative aims at providing patients with a high-quality continuum of care in the home.
It includes new alternative care models to broaden comprehensive, coordinated medical care at home, hospital-level care, palliative or supportive care, and skilled nursing care.
Following the launch of the programs, eligible patients will be offered an alternative to conventional inpatient hospitalization as well as other services like skilled nursing care at home and options for additional support and assistance for seriously ill patients along with their families and caregivers.
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Per the announcement, Baylor Scott & White, which is the largest not-for-profit health system in Texas, will start offering the new programs to eligible patients in 2023.
Per Amedisys data, Contessa’s model reduces readmission rates by 44% and cuts the length of hospital stays by 35%. Further, it has a patient satisfaction rate of more than 90%.
The home health industry is poised for tremendous growth in the long term, driven by the aging U.S. population, and 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. Contessa Update
Amedisys’ acquisition of Contessa in August 2021 bears multiple strategic benefits. It will enable Amedisys to create a premier home-based health system, substantially expanding its Total Addressable Market, and develop an innovation platform for the company to invest in, recruit, and retain highly trained and skilled clinicians.
The buyout also places Amedisys as the first national Home Health provider with the ability to scale across a large geographic area. It also boosts admissions growth opportunities for Amedisys Home Health and Hospice. It enhances Amedisys’ ability to provide quality care and outcomes at minimal cost through value-based care arrangements for commercial, Medicare, Medicare Advantage and managed Medicaid payors.
Following Contessa’s integration, this business of Amedisys experienced continued positive momentum in the first quarter of 2022, offering home-based recovery solutions to patients needing acute level care. Further, improved revenues from Medicare and Non-Medicare buoy optimism for the company.
Share Price Performance
Over the past year, Amedisys has underperformed the
industry it belongs to. Per the last trading price, the stock has lost 54.4% compared with the 47.8% decline of the industry. Zacks Rank and Key Picks
Currently, Amedisys carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are
UnitedHealth Group Incorporated ( UNH Quick Quote UNH - Free Report) , Medpace Holdings, Inc. ( MEDP Quick Quote MEDP - Free Report) and Alkermes plc ( ALKS Quick Quote ALKS - Free Report) .
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.
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the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.