T.S. Eliot said that April is the cruelest month. He must have been an investor in the 2022 stock market.

Stocks took a beating across the board in April, with the S&P falling nearly 10%. And according to the Home Health (HHI) and Post-Acute Care (PAI) indices from national mergers and acquisitions advisory firm Stoneridge Partners, home health and post-acute care companies were certainly not immune to the market’s decline.

“Providers who made it out of the pandemic are now weathering supply chain issues, soaring increases in fuel prices and the lingering effects of the Great Resignation,” said Stoneridge Partners Managing Partner Brian Bruenderman. “But these challenges are facing all businesses, not just the healthcare sector – the S&P is off to its worst start since 1939. I wouldn’t regard weakness in the market overall as weakness in the market for home health and post-acute care.”

The Stoneridge HHI dropped more than 13% from March to April, while the PAI (what percentage drop?).

Home Health Index

Perhaps the most startling decline among companies on the Home Health Index was Amedisys, Inc. (Nasdaq: AMED), which dropped almost 26% from March to April. LHC Group, Inc. (Nasdaq: LHCG) was down by just shy of 2% over the same period.

Both Amedisys and LHC have had to deal with COVID-19-related disruption the first quarter with approximately 7% of each company’s clinicians in quarantine, leading to higher contract labor costs. The difference for Amedisys may have been the increase in gas prices – the company spends almost $4 million monthly on fuel.

Post-Acute Care Index

Addus HomeCare Corporation (Nasdaq: ADUS) also experienced a stock value dip in April, dropping by nearly 10%.

During Q1, Addus experienced its highest employee-quarantine rate ever at 4%. Hiring also became a company pain point. The company saw a 4% to 5% increase in per-hour pay for home health and hospice workers due to wage pressure.

Quote of the Month

“We know we are not alone on this one. The challenge can be that we are all struggling in one way or another and this can impact the amount of support one can get from others.” – Dr. Jacqueline Hidalgo, Psy.D. with Lee Health

Read the Full Article Here: Take Care of Yourself: May is Mental Health Awareness Month

Articles Featuring Stoneridge

Where is the activity in the healthcare M&A market right now? Home Health Care News turned to the experts at Stoneridge Partners to find out. See what Managing Partner Brian Bruenderman had to say about where the home health, home care and behavioral health markets stand right now — and where they may be heading.

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 4/30/22 1 mos change YTD change 4/30/21 4/30/20
Amedisys 127.65 -25.91% -21.15% 269.85 184.16
LHC Group 165.85 -1.63% -20.86% 208.27 129.99
HH Index* 146.75 -13.90% -1.88% 239.06 157.08
S&P 4117.75 -9.51% -13.60% 4181.17 2912.43
Addus 84.28 -9.66% -9.87% 105.8 81.02

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 4660 9560 6470
LHC Group 5910 6430 4220
HH Index Total 10570 15990 10690
Addus 1450 1780 1130

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

Company 2022 2021 2020
Amedisys 210% 452% 331%
LHC Group 266% 312% 203%
HH Index Average* 238% 382% 267%
Addus 168% 232% 189%

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 May 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.

Private duty home care franchise.  $5M in revenue.  Quality track record with strong management team.  Excellent 18-year history,

 Home Care /  Colorado

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

Medicare-certified home health and hospice provider.  $19M in revenue.  Attractive strategic geography.

 Home Health /  Ohio

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

 Home Health /  Florida

$4M revenue run rate.  ID/DD Services.  Recent rate increase.

 ID/DD /  Kentucky

$1M in revenue.  Medicare-certified home health agency.  Minimal census.

 Home Health /  Minnesota

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

Co-occurring, dual-diagnosis, addiction and mental health treatment center, 13- year history.  PHP, IOP, OP levels of care, prime location and setting, treating SUD and multiple...

 Behavioral Health /  Arizona

$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

$2.5M private pay home care agency.  20-year history, diverse referral sources.  Competitive bill rates.  Unique and successful recruiting and retention strategy.

 Home Care /  Virginia

$2.8M home health agency.  Medicare and Medicaid-certified.  Approximately 70% skilled: 10% Medicare, 25$ Medicaid, 65% MA and HMO.  Approximately 30% non-medical; 100% private pay.  Accredited.

 Home Health /  Colorado

$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.


$1.5 million home health company.  Medicare/Medicaid-certified.  Primarily skilled services.  80+% HMO.  15+% Medicare.

 Home Health /  Massachusetts

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

Joint Commission-accredited psychiatric treatment center.  Residential, PHP, IOP, OP and home health services.  National referral base; reputation for excellence, innovation.  $3M EBITDA on $7M revenue...

 Behavioral Health /  Midwest

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

$2+ million private pay.  Profitable with great reputation.

 Home Health /  Pennsylvania

Profitable hospice agency with $600,000 in revenue.  Ready to grow with full complement of staff in place.

 Hospice /  Pennsylvania

CHAP-accredited private duty business.  $2.8 million projected 2021 revenue.  Workers' compensation primary source of revenue.  Regions 9, 10 and 11.

 Home Health /  Florida

$1 million Medicare home health agency in northwest Minnesota.  Well-established.  Diverse referral sources.  Long history of excellent care.

 Home Health /  Minnesota

$4.9 million Medicare home health agency located in Phoenix, Arizona.  Showing strong year over year revenue growth since 2018.  Diverse referral sources, well run with...

 Home Health /  Arizona

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

 Hospice /  Texas

$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 May 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