Introduction

The Home Health Index (HHI) rose 1.05% in March and is up 2.86% year-to-date, despite a significant decline in the S&P 500, which was down 5.75% for the month and 4.59% in 2025.

The Post-Acute Care Index (PACI) also improved, gaining 2.76% month-over-month. While the index remains down 7.97% year-to-date, select providers posted significant gains—most notably Aveanna, which saw its stock rise over 27% in March.

These results all predated April 2nd, which the Trump Administration called “Liberation Day,” wherein sweeping tariffs imposed on a vast array of nations were to take effect on April 5, with additional tariffs beginning on April 9.

This situation is extremely dynamic as the US and foreign nations continue to address the tariffs, as demonstrated by the 90-day suspension the US announced on April 9.

While the anticipation of these tariffs seemingly had an impact on the S&P 500 prior to implementation, the question remains what both the short- and long-term impact will be on the market going forward.

In addition, on April 3rd, the Senate confirmed Dr. Mehmet Oz as administrator for the Centers for Medicare and Medicaid Services (CMS).

“It’s always an ever-changing and evolving landscape. The current tariff situation will undoubtedly have an impact on the stock market, as we’ve seen, but we’ve experienced no slowdown in M&A during this time. There has been no decline in interest from Buyers for good quality home health, home care, and hospice assets” Ben Bogan, Partner and Managing Director at Stoneridge Partners, noted. “Current deals have not been sidelined, and Buyers are still actively engaging with M&A targets and submitting solid offers.”

Home Health Index (HHI)

Amedisys gained 0.68% in March and is up 2.03% year-to-date as UnitedHealth Group (UHG) continues its pursuit of Amedisys despite the outstanding Department of Justice antitrust lawsuit.

Enhabit’s stock rose 5.02% in March and is up 12.55% year-to-date. This follows the start of a new multi-year agreement with UnitedHealthcare and continued de novo expansion.

According to Enhabit CEO, Barb Jacobsmeyer, “In our home health segment, fourth quarter Medicare census continued to stabilize, and with the renegotiation of a large national contract complete, we will be well positioned as a full-service provider to our referral sources.”

The company opened three new hospice locations in the fourth quarter of 2024, bringing the total number of de novos last year to one new home health and five new hospice locations.

Post-Acute Care Index (PAI)

Aveanna Healthcare’s stock value increased 27.23% month-over-month in March and 18.60% year-to-date. In its last earnings call for 2024, Aveanna reported a 76% episodic home health payer mix in Q4, exceeding its internal goal of 70%.

In late March, the company announced a definitive agreement to acquire Thrive Skilled Pediatric Care, expanding its footprint in pediatric home health. The acquisition will strengthen its existing footprint in multiple states and expand their reach into two new states.

Aveanna CEO Jeff Shaner remarked in a statement, “Like Aveanna, Thrive SPC is committed to delivering high-quality and patient centered clinical care that leads to exceptional outcomes for patients and families. Thrive SPC is an exceptional cultural and geographical fit for us and reinforces our strategic mission of remaining the leader in delivering high quality care while bringing unprecedented value and clinical innovation to our payors and stakeholders.”

Addus HomeCare’s stock rose 3.26% in March but remains down 21.11% year-to-date. The company continues to focus on growth in its personal care segment and expansion through strategic M&A initiatives, as demonstrated by its recent acquisition of Gentiva’s personal care operations.

Addus CEO Dirk Allison noted “We are fortunate to have the financial flexibility to invest in our business and pursue our strategic growth initiatives. Acquisitions continue to be an important part of our growth strategy, allowing us to expand our coverage capabilities and build scale in strategic markets.”

The Pennant Group gained 9.49% in March and is down 6.00% year-to-date. Coming into 2025, the company completed its acquisition of Signature Healthcare at Home’s assets in Oregon. This was a two-step process, with the first stage being the acquisition of Signature’s assets in Idaho and Washington in August 2024.

Conclusion

While updates on US Trade Policy continue to unfold and new leadership enters regulatory agencies like the Centers for Medicare & Medicaid Services (CMS), the outlook for M&A in 2025 is robust with buyers showing strong interest and actively pursuing acquisition targets.

Quote of the Month

“We’ve seen firsthand how the High-Needs track of ACO REACH presents an opportunity to better coordinate care for patients with complex, polychronic needs. We will actively work with the Complex Care Alliance to advocate for CMS to continue, strengthen and expand the program so we may care for our sickest and most vulnerable patients most effectively.” – Matt Chance, CEO of HarmonyCares

Read the Full Article Here: Accountable Care Organizations Join Forces To Protect Critical Medicare Programs

Stoneridge In the News:

Is Selling a Home Health Agency or Hospice Like Selling a House? Read the Full Article Here – Blog written by Partner & Managing Director Ben Bogan.

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:

• Amedisys (AMED)
• Enhabit (EHAB)

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

Enterprise Value (EV)

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

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

• Addus (ADUS)
• Amedisys (AMED)
• Aveanna (AVAH)
• Brightspring (BTSG)
• Brookdale Senior Living Inc. (BKD)
• Enhabit (EHAB)
• The Pennant Group, Inc. (PNTG)

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

Enterprise Value (EV)

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

This graph displays 24 months of Post-Acute Care Index performance.

[visualizer id=”16312″]

The above calculations are based on the selling price being defined as Enterprise Value (EV), with data provided by Yahoo Finance. Enterprise value is defined as market cap plus debt, minority interest, and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using a methodology that may differ from that used by a company for its reporting. (Home Health Index March 2025 | Stoneridge Partners)

Recent Transactions From Around The Country

• Private equity firm Waud Capital Partners has acquired MedTec Healthcare, a provider of in-home care and adult day services.
• New Day Healthcare Acquires Patient Recovery Home Healthcare Services; Always Best Care
• US Pediatric Partners Expands Behavioral Health Footprint with Acquisition of Hope Services in North Carolina

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the successful sale of a western Pennsylvania hospice agency.
• Stoneridge Partners is proud to announce the successful sale of a North Carolina home care agency.

View Stoneridge closed transactions on our Website.

Home Health Index March 2025 | Stoneridge Partners

From Ben Bogan, Publisher of “Home Health Index.” Ben 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.