After a lackluster start to 2022, February was a blockbuster month for home health and post-acute care providers.

Most of the publicly-traded companies tracked by the Stoneridge Partners Home Health (HHI) and Post-Acute Care (PAI) Indices experienced solid stock gains. Stoneridge Managing Director and Partner Brian Bruenderman said the rebound was driven in part by improvements in the labor landscape.

“Make no mistake, workforce shortages still exist in the home health and post-acute industry, and likely will for some time to come,” said Bruenderman. “But we are seeing signs of recovery from COVID-related labor struggles. Providers are doing a better job of retaining existing employees and recruiting new ones – and right now, even the smallest improvements can substantially lift a provider’s operations.”

The HHI was up slightly more than 14% in February compared to January, while the PAI climbed just more than 13%. In comparison, the S&P 500 dropped nearly 3.5% during that same period.

Home Health Index

The stock values of home health giants Amedisys, Inc. (Nasdaq: AMED) and LHC Group, Inc. (Nasdaq: LHCG) were greatly improved in February, with Amedisys up nearly 19% and a more than 9% increase for LHC.

Investors have responded positively to Amedisys’ emphasis on core operations as President and COO Chris Gerard prepares to take over the CEO role on April 15. The company also announced recent M&A activity, buying the home health assets of AssistedCare Home Health and RH Homecare Services. But current progress on the workforce front was the major headline after months of labor challenges.

“As health care labor markets become more challenged nationwide, Amedisys was able to drive our clinical turnover down an additional 9% from 2020 to 2021,” Chairman and CEO Paul Kusserow said during a Q4 earnings call. “Additionally, to fuel our present and future growth, we increased our recruitment numbers by driving a 27% increase in recruited headcount.”

LHC Group also posted net-positive new hire numbers and continued to see a decline in the number of its clinicians in COVID-19 quarantine.

Post-Acute Care Index

PAI companies Addus HomeCare Corporation (Nasdaq: ADUS), Encompass Health Corporation (NYSE: EHC) and Brookdale Senior Living Inc. (NYSE: BKD) also saw their stock values rise in February. Addus and Encompass both improved by more than 6%, while Brookdale had a banner month with a 22% jump in its stock values as compared to January. The only provider that didn’t join the rally was The Pennant Group, Inc. (Nasdaq: PNTG), where stock values dipped – though only slightly – by just more than 1% in February.

After announcing that it planned to spin off its home health and hospice segment into a standalone, publicly-traded entity, Encompass Health now appears willing to explore strategic alternatives. According to recent reports, privately-held AccentCare, Inc. and Aveanna Healthcare Holdings (Nasdaq: AVAH) may be among the interested suitors.

Quote of the Month

”We have a real caregiver problem that’s going to last 20-plus years. This is the new normal, we’re going to have a workforce shortage that’s going to last forever.” – David Ellis, President and Founder of Home Care 100

Read the Full Article Here: Examining the Future of Homecare

Articles Featuring Stoneridge

Traditions Health Expands Reach with Acquisitions in 3 States. Ben Bogan, Partner and Managing Director of Stoneridge Partners served as the exclusive advisor.

Visit the Speaker Series Webinar Library on our website to watch our most recent Speaker Series discussing how to avoid common pitfalls when selling your healthcare business.

See It To Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)

Here are the results of the stock prices for the past two years:

Company 2/28/22 1 mos change YTD change 2/28/21 2/28/20
Amedisys 160.24 +18.66% -1.01% 253.64 174.01
LHC Group 136.17 +9.10% -0.77% 181.71 121.46
HH Index* 148.21 +14.07% -0.90% 217.68 147.74
S&P 4370.5 -3.36% -8.30% 3841.0 2954.22
Addus 85.04 +6.65% -9.06% 107.57 76.27

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

Enterprise Value (EV)

EV (in M) 2022 2021 2020
Amedisys 5620 8550 6320
LHC Group 4720 5610 4400
HH Index Total 10340 14160 10720
Addus 1460 1630 1230

Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 2022 2021 2020
Amedisys 255% 413% 323%
LHC Group 217% 272% 214%
HH Index Average* 236% 343% 269%
Addus 175% 215% 206%

The Stoneridge Partners Post-Acute Care Index is updated monthly and measures the performance of these six publicly traded post-acute care companies, all listed on the NASDAQ:

  • LHC Group (LHCG)
  • Amedisys (AMED)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company for its reporting. (Home Health Index March 2022 | Stoneridge Partners)

Exclusively Listed For Sale By Stoneridge Partners.

Do you know of any acquisitions that have taken place? We are interested in your comments. Contact us at Stoneridge Partners.

Hospice agency.  6 counties in northern California.  Moratorium in place.  Minimal census.  Accredited.

 Hospice /  California

Medicare home health agency.  Health system relationship.  Rare KY CON opportunity, multiple counties

 Home Health /  Kentucky

Opportunity to establish a Houston-based hospice.  Low-census provider licensed for regions 3, 4, 5 and 6.

 Hospice /  Texas

Opportunity to establish a Medicare hospice and Medicare home health agency.  Greater Salt Lake city area.  Clean provider number with management and field staff in...

 Home Health /  Utah

Large, established franchise territory.  $2.5 million revenue.  Two offices with strong leadership teams in place.

 Home Care /  Michigan

ABA in-home and community-based autism treatment for children and families.  Located in Northeastern VA.  $1M in revenue.  Completely self-sufficient staff to remain.

 Other /  Virginia

Home health with $8+M in revenue.  Medicare/Medicaid-certified.  90+% traditional Medicare/episodic.  Services central Texas and licensed for entire state.  Strong management team in place.

 Home Health /  Texas

Home care franchisee.  $8.4M in revenue.  Highly profitable agency.  Medicaid/private pay.

 Home Care /  Kentucky

Skilled home health agency.  JCAHO accredited, zero deficiencies.  Excellent reputation and referral relationships.  $400k in revenue, impressive growth potential.

 Home Health /  Colorado

Medicare-certified home health agency.  Houston-area.  Minimal census.

 Home Health /  Texas

Medicare-certified home health agency.  $1M+ in revenue.  Long-established agency with excellent community rapport.

 Home Health /  Texas

In-home DME manufacturer.  Patented mobility system.  $7.7M+ in revenue.  GSA/VA contract.  Strong industry supplier partnerships.

 Other /  California

$1M in revenue.  Small Medicare home health agency.  Region 5.

 Home Health /  Florida

Private pay home care.  $1.6M in revenue.  Profitable, great reputation.  Tenured staff.

 Home Care /  Illinois

Medicare-certified home health agency.  District 3.  Approximately $700k in revenue.  Accredited.

 Home Health /  Florida

Medicare-certified home health agency.  District 5.  Minimal census.  Accredited.

 Home Health /  Florida

$19.5M large home care franchisee.  89% Medicaid.  Well-established company operating more than 20 years.  Phenomenal year-over-year revenue growth.

 Home Care /  Illinois

$27M highly profitable, tech-enabled health care staffing company.  Provides on-demand workers for LTC facilities.  Impressive growth trends with extraordinary upside

 Other /  Midwest

Well-established and profitable franchisee.  Revenue of $4.9M.  Medicaid and private pay.

 Home Care /  Southwest

ABA in-home autism therapy for children.  $2.4M in revenue.  Strong growth and bottom line.

 Other /  California

Opportunity to acquire a Medicare-certified home health agency. JCAHO-accredited.  Zero deficiencies.  Region 9.

 Home Health /  Florida

Opportunity to acquire a Medicare-certified home health agency.  JACHO-accredited.  Zero deficiencies.  Minimal census.

 Home Health /  Pennsylvania

Opportunity to acquire a Medicare-certified home health agency.  Zero deficiencies.  Minimal census.

 Home Health /  Kansas

Rare southern hospice/home health CON opportunity.  $3.5M in revenue, 60+ hospice ADC.  Strong staff recruiting and retention.

 Home Health /  South

Medicaid/private pay, Medicare-certified.  $3 million in revenue.  CHAP-accredited.


4-star home health agency.  $2.5 million revenue.  Experienced management team.  Strong financials with outstanding local reputation.  Huge growth opportunities.

 Home Health /  Michigan

$1.5 million revenue chiropractic/physical therapy business.  High profit margin/low operating costs.  Diverse referral sources.

 Other /  Maryland

$3.3 million in revenue.  Autism center providing ABA, OT, PT and ST.  In-clinic and in-home services.

 Other /  Michigan

Non-skilled licensed home care organization.  Approx. $2 million in annual revenue.  Strong management team in place.  Southern California.

 Home Care /  California

Central Ohio-based home health company with private pay.  $2.3 million in revenue.  13.5% EBITDA.  Strong growth trends, full staff in place.

 Home Health /  Ohio

Hospice with $3.5 million in annual revenue. Accredited. No cap or regulatory issues.

 Hospice /  Texas / Popular

$2.5 million New Mexico home health agency. 87% Medicare. Long history in the community and existing staff in place.

 Home Health /  New Mexico

Home Health Index March 2022 | Stoneridge Partners

From Brian Bruenderman, Publisher of “Home Health Index.” Brian can be reached at [email protected] or (239) 561-0826, and toll-free at 800-218-3944. Previous editions of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Amedisys | LHC Group