Introduction

May 2025 saw a strong rebound across both the home-based care sector and broader U.S. markets following some volatility in April. The Home Health Index (HHI) rose 1.90% month-over-month (MoM), bringing its total year-to-date (YTD) gain to 6.33%. The Post-Acute Care Index (PAI) surged 7.06% in May, turning positive for the year with a 1.14% YTD increase. Meanwhile, the S&P 500 gained 6.15% MoM and is now up 0.51% YTD.

This rebound comes amid ongoing uncertainty regarding U.S. trade policy, which sparked a historic drop in the S&P 500 following April 2nd, 2025. While May saw solid recovery across U.S. Markets, tariff negotiations are still unfolding, and global markets remain sensitive to further developments.

Separately, UnitedHealth Group’s (NYSE: UNH) stock experienced a significant drop in May, reaching a five-year low. During this period, UnitedHealth announced that its former CEO, Stephen Hemsley, would replace Andrew Witty, who appears to have stepped down from his position. Additionally, the company continues to operate under pressure from the Department of Justice (DOJ) regarding its proposed acquisition of Amedisys.

“As we approach mid-year, M&A in the home-based care space remains active and strong,” said Ben Bogan, Partner and Managing Director at Stoneridge Partners. “Sellers are capitalizing on the current interest from buyers looking to expand their service lines and territories through acquisition.”

Home Health Index (HHI)

In May, Amedisys’ stock posted a month-over-month decrease of 0.57%, bringing its year-to-date gain to 3.93%.

Amedisys continues to navigate its proposed $3.3B acquisition by UnitedHealth, which was initially announced in June 2023. In November of last year, the DOJ filed an antitrust lawsuit to block the merger, adding an additional layer of complexity to the deal. The two companies are scheduled to go to court-directed mediation on August 18th, barring any unexpected resolutions to the lawsuit before that date.

Enhabit’s stock posted a substantial 31.16% gain in May, bringing its YTD gain to 34.19%. In Q1 2025, the company’s hospice segment posted year-over-year gains of 20.5% in Net Service Revenue and an impressive 64.8% in segment Adjusted EBITDA.

Post-Acute Care Index (PAI)

Addus’s stock saw a 6.08% gain in May and is down 11.52% for the year. At the end of Q1 2025, Addus posted year-over-year increases of 20.3% in net service revenues and 25.1% in Adjusted EBITDA. Chairman and CEO Dirk Allison praised the company’s Q1 performance, adding that “These results reflect solid organic growth and include the first full quarter of the personal care operations of Gentiva, which we acquired on December 2, 2024.”

BrightSpring was among the highest-performing companies in the PAI in May, with a solid 36.17% stock gain MoM and 40.16% gain YTD. Additionally, in its Q1 2025 financials release, the company noted a 25.9% increase in Net Revenue and a 28.2% increase in Adjusted EBITDA compared to Q1 2024.

Chairman, President, and CEO Jon Rousseau noted, “We are pleased with our first quarter results across the Pharmacy and Provider service lines, as we reach more patients with high-quality solutions, leverage our scaled platform and processes, and invest in best practices and the future. We remain confident in our team’s ability to bring timely, coordinated, and impactful services and care to the populations we serve, where they are.”

Aveanna has completed its acquisition of Thrive Skilled Pediatric Care, which strengthens its existing footprint and expands its care platform in two new states. According to CEO Jeff Shaner, “The addition of Thrive Skilled Pediatric Care to Aveanna creates a tremendous growth opportunity for the combined company” adding that “Thrive SPC is an exceptional company with a perfect geographical fit for us, and together we share a true commitment to clinical excellence and compassionate care.”

In May 2025, Aveanna’s stock saw a 15.62% gain MoM, bringing its YTD gain to 16.63%.

Conclusion

After a turbulent April, May brought a strong rebound for US markets. As Trade Policy continues to unfold, however, and other world events continue to take shape, it is anticipated that future fluctuations in the market will continue. Despite this anticipated variability in the overall market, home-based care M&A continues a strong march forward as buyers in this space demonstrate continued demand and a seemingly voracious appetite for attractive targets across the US.

Quote of the Month

In acknowledgement of May being Mental Health Awareness month, “Mental health is central to the vitality and resilience of our nation. Achieving ambitious goals, such as ‘Making America Healthy Again’ and reducing chronic disease — depends on prioritizing access to effective mental and behavioral health resources and services people need to achieve optimal health.”
– CEO Alliance for Mental Health

Read the Full Article Here: Letter from the CEO Alliance For Mental Health to Congress

Stoneridge In the News:

Key Trends in Behavioral Health M&A Read the Full Article Here – Blog written by Associate Partner Peter Lynch.

Stoneridge Partners, Joe Lynch and Tom Lillis, provided sell-side M&A advisory services to a home health company in Ohio. Read the Full Article Here

Stoneridge Partners, Jenna Schwartz and Josh Hibbert, provided buy-side M&A advisory services to a home health company in North Carolina. Read the Full Article Here

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

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 May 2025 | Stoneridge Partners)

Recent Transactions From Around The Country

• HomeCentris Healthcare, LLC Announces the Acquisition of Family First Home Healthcare, LLC
• DispatchHealth and Medically Home Merger Closes, Creating a National Platform for Complex Care at Home

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the successful sale of an Ohio home health 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 May 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.