Introduction

In June 2025, the Home Health Index saw a 3.04% increase month-over-month (MoM), bringing its total year-to-date (YTD) gain to 9.56%. Meanwhile, the Post Acute Care Index rose 3.07% MoM and is up 4.24% YTD. After a steep drop in early April and a steady recovery in May, the S&P 500 is up 4.96% MoM and 5.50% for the year.

While the S&P has made a strong recovery since April, several geopolitical factors are still at play, including foreign conflict in the Middle East and ongoing updates to trade policy. Domestically, the U.S. Administration’s “One Big Beautiful Bill” Act passed through the House and Senate in late June and early July, with the finalized legislation being signed into law on July 4th, 2025.

UnitedHealth Group’s stock price saw a five-year low in May but appears to have rebounded slightly towards the end of June. The company continues to navigate an antitrust lawsuit from the Department of Justice (DOJ) regarding its proposed acquisition of Amedisys. The DOJ filed the lawsuit last November, claiming that the deal could diminish competition in the home health and hospice space if it were to close. The two companies are scheduled to participate in mediation with the DOJ on August 18th to see if they can reach an agreeable solution.

Additionally, the Department of Labor (DOL) has proposed a new rule to reinstate the companionship exemption for home care agencies, which was removed in 2013. If finalized, the rule would allow agencies to again classify certain in-home caregivers as exempt from federal minimum wage and overtime requirements—potentially reducing costs for live-in and extended-hour care.

“Providers in the home health space continue to capitalize on an ever-growing demand for care at home,” said Joe Lynch, Partner and Managing Director at Stoneridge Partners. “As providers choose to exit the market, we’re continuing to see extremely strong interest from buyers to acquire attractive targets and bolster their existing footprint or expand into new geography.”

Home Health Index (HHI)

Amedisys Inc. (NASDAQ: AMED) saw a 4.27% increase in its stock price month-over-month in June, bringing its YTD performance to 8.37%.

As scrutiny from the DOJ persists regarding Amedisys’s proposed acquisition by UnitedHealth, the acquiring company has expressed confidence in the path forward. In its 2025 Annual Shareholder meeting, UnitedHealth stated that “We remain optimistic that we will complete our proposed merger with Amedisys,” adding that “Amedisys’ commitment to quality and care innovation within the home, and the patient-first culture of its people combined with Optum’s deep value-based care expertise, can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth for both organizations.”

Enhabit saw an 8.02% drop in stock price in June but remains up 23.43% for the year. On June 10th, Enhabit presented at the Goldman Sachs 46th Annual Global Healthcare Conference, addressing its operations and strategic initiatives moving into the second half of 2025 and beyond. Among the topics discussed, Enhabit noted that its expansion plans include adding 10 de novo hospice locations each year while continuing to explore strategic M&A targets as well.

Post Acute Care Index (PAI)

The Pennant Group’s stock rose 3.97% in June and is up 12.56% YTD. In mid-May, the company appointed Suzanne Snapper to its Board of Directors following a vote of shareholders. Snapper also serves as the CFO and Board member of Ensign Group, Inc., which completed a spinoff of its home health and hospice assets in 2019 to form the Pennant Group. Ensign Group, Inc. is a publicly traded healthcare services provider specializing in skilled nursing, rehabilitative care, and senior living services. According to Pennant CEO, Brent Guerisoli, “Suzanne is a highly skilled and experienced health care leader who will add tremendous value to our organization.”

BrightSpring Health Services (NASDAQ: BTSG) posted a slight decline of 1.17% in June but remains up 38.52% year-to-date. In April 2025, Amedisys filed to offload certain assets to BrightSpring and the Pennant group in an attempt to ease antitrust concerns regarding its proposed merger with UnitedHealth. The DOJ has not yet accepted the proposed divestment to BrightSpring and Pennant, which is contingent on the UnitedHealth-Amedisys merger closing.

Brookdale Senior Living (NYSE: BKD) recorded a 5.61% increase in its stock price in June, extending its year-to-date gain to 38.37%. On June 11th, the company released an investor presentation highlighting the Board’s strategy to deliver long-term shareholder value. According to the report, “The Board and management are executing on five key initiatives to deliver meaningful shareholder value: improving operating performance, optimizing the real estate portfolio, reinvesting capital into communities, reducing leverage, and ensuring high-quality environments for residents and associates.”

Conclusion

Following a volatile spring, June delivered a continued rebound across the market, with the S&P 500 and both the Home Health and Post-Acute Care indices posting solid gains. Yet, underlying uncertainty remains. Global conflicts, shifting trade dynamics, and the evolving legislative landscape are all likely to influence market sentiment in the months ahead. Despite the current uncertainty, the home-based care sector continues to remain a bright spot. Buyer appetite for quality providers continues to run strong, driven by growing demand for services delivered in the home and strategic efforts to scale through acquisition.

Quote of the Month

“For the third consecutive year, CMS has proposed cuts that make it significantly harder for home health providers to meet the care demands for an increasingly complex and aging patient population… The status quo of continuous cuts is unsustainable: Medicare’s continued application of permanent cuts to home health further undermines a community that is facing historic labor costs and workforce shortages. We fear that CMS’s proposed actions for 2025 will have unintended consequences on older Americans who want to receive care at home.”
– Joanne Cunningham, CEO of the Partnership for Quality Home Healthcare

Read the Full Article Here: Home Health Leaders: More Home Health Cuts in 2025 Further Undermine Patient Access to Care

Stoneridge In the News:

Understanding Holdbacks & Earnouts: What Sellers of Home Care and Hospice Companies Need to Know When Negotiating a Deal 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

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 June 2025 | Stoneridge Partners)

Recent Transactions From Around The Country

• The Pennant Group, Inc. acquired GrandCare Home Health in Southern California
• Caretech acquired Quality Home Health Care in Wyoming
• h/care acquired American Premier Home Health in Arizona

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the successful sale of a New Mexico home health agency.
• Stoneridge Partners is proud to announce the successful sale of a Virginia home health agency.
• Stoneridge Partners is proud to announce the successful sale of a Massachusetts I/DD agency.
• Stoneridge Partners is proud to announce the successful sale of a Colorado home care agency.

View Stoneridge closed transactions on our Website.

Home Health Index June 2025 | Stoneridge Partners

From Joe Lynch, Publisher of “Home Health Index.” Joe 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.