Introduction

In July 2025, the S&P 500 reached new highs for the year, rising 2.17% month-over-month (MoM) and bringing its year-to-date (YTD) gain to 7.78%. Meanwhile, the Home Health and Post Acute indexes faced some volatility, with the HHI decreasing 2.52% MoM and the PAI decreasing 7.69% MoM. While the HHI is still up 6.82% for the year, the PAI has seen a YTD decrease of 3.77%.

The U.S. government continued to advance foreign trade negotiations in July, with countries including South Korea, Japan, and the Philippines reaching new tariff agreements. The administration also announced a framework for future trade with the European Union, avoiding a wave of reciprocal tariffs that had been scheduled to take effect on August 1st. While trade negotiations are still in flux, global markets have shown resilience as multiple nations work to secure favorable terms with the U.S.

Separately, the Commissioner of the Bureau of Labor Statistics (BLS), Erika McEntarfer, was recently dismissed from her role. President Donald Trump has nominated E.J. Antoni to replace her, though his confirmation is pending Senate approval. In the meantime, William Wiatrowski has been appointed to serve as the acting Commissioner of BLS in McEnterfer’s place.

“Even with ongoing uncertainty surrounding international trade policy, July has been as busy as ever for home health and hospice M&A. We’re continuing to see robust activity and deal flow, with no signs of summer doldrums” said Ben Bogan, Partner and Managing Director at Stoneridge Partners.

Home Health Index (HHI)

In July, Amedisys’ stock price increased 0.21% month-over-month and is up 8.60% year-to-date. In Q2 2025, the company reported adjusted net income of $51.4 million, compared to $43.5 million in Q2 2024. Adjusted EBITDA for the quarter was $80.8 million, up 10.4% from $73.2 million during the same period last year.

Roughly two years after signing the initial purchase agreement, UnitedHealth (UNH) has finally closed on its acquisition of Amedisys. In early August, the Department of Justice (DOJ) filed a proposed settlement to address antitrust concerns which had previously been delaying the merger. This settlement requires UNH and Amedisys to divest 164 home health and hospice locations across 19 states, representing roughly $528 million in annual revenue. Following the transaction’s close on August 14, Amedisys is no longer trading on the NASDAQ.

Enhabit, on the other hand, saw a 30.29% MoM decrease in stock price in July, and is down 13.96% for the year. However, in Q2, the company reported $26.9 million in adjusted EBITDA for the quarter, up 6.7% from the same period of 2024. According to President & CEO Barb Jacobsmeyer, “Our second quarter results reflect strong execution of our strategic 2025 priorities, with sequential and year-over-year growth in revenue and Adjusted EBITDA.”

The company recently announced that Jacobsmeyer intends to step down from her roles as president, CEO, and board member by summer of next year. A succession plan has been established wherein Jacobsmeyer will remain at the company until July 2026, or until a replacement has been appointed.

Post Acute Care Index (PAI)

In July, Addus reported a 7.30% decrease in stock price month-over-month and is down 14.81% year-to-date. Despite this dip in its stock price, the company posted quarterly adjusted EBITDA of $43.9 million in Q2, representing a 24.5% increase from the same period in 2024. Dirk Allison, Chairman and Chief Executive Officer, praised the company’s performance, saying that “These results reflect solid organic growth and include the additional revenue from the personal care operations of Gentiva, which we acquired on December 2, 2024.”

Brookdale posted a strong 11.35% gain in stock price month-over-month and is up 54.08% year-to-date. The company reported adjusted EBITDA of $117.1 million for Q2, a 19.7% increase from the same quarter in 2024. Additionally, Denise Warren, Brookdale’s Interim Chief Executive Officer and Chairman, noted that “Our occupancy performance accelerated during the second half of the quarter and we continued that momentum into July, as we’ve now surpassed the important 80% occupancy mark that is a critical inflection point for cash flow generation.”

The Pennant Group saw a 25.73% decrease in stock price month-over-month and is down 16.40% year-to-date. Despite this decrease in its stock price, similar to Enhabit and Addus, The Pennant Group reported solid performance in Q2 2005. The company announced consolidated adjusted EBITDA of $16.4 million for Q2 2025, representing a 24.5% increase over the prior-year quarter. Additionally, the Pennant Group has agreed to acquire certain assets divested from UNH and Amedisys as part of the DOJ’s antitrust settlement.

According to John Gochnour, Chief Operating Officer at the Pennant Group, “Our local leaders are driving strong clinical, cultural and financial results across Pennant. Looking to the future, we see significant untapped potential for organic improvement and exciting acquisition opportunities on the near horizon, including the announced transaction with UnitedHealth Group and Amedisys.”

Conclusion

Despite some volatility across the home health and post-acute sectors, several companies delivered strong Q2 earnings and signaled continued momentum heading into the second half of the year. M&A activity has remained steady through the summer, with providers in the home health and hospice space continuing to pursue strategic acquisitions. As the second half of 2025 unfolds, many are seeking opportunities to expand service lines and strengthen their presence in new or existing markets by transacting with owners preparing for an exit.

Quote of the Month

“The Alliance appreciates CMS’s partnership in the rulemaking process for hospice providers. While the finalized 2.6% payment update is still insufficient for providers that face persistent inflationary forces amid an ongoing nationwide healthcare workforce crisis, we recognize CMS’s incorporation of Alliance feedback to help streamline regulatory requirements. We will continue to partner with CMS to advocate for home-based care rulemaking that focuses on comprehensive long-term strategy to best serve both the American people and the Medicare trust fund.”
– Dr. Steve Landers, CEO of the National Alliance for Care at Home

Read the Full Article Here: National Alliance for Care at Home Responds to FY 2026 Hospice Final Rule

Stoneridge In the News:

When is the Right Time to Sell Your Home Health or Hospice Business? Read the Full Article Here – Blog written by Partner & Managing Director Ben Bogan.

Stoneridge Partners, Joe Lynch and Dan Huckestein, provided sell-side M&A advisory services to Good Samaritan Society and Heritage Home Health Care in their transaction with New Day Healthcare. 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 July 2025 | Stoneridge Partners)

Recent Transactions From Around The Country

• UnitedHealth Group acquired Amedisys
• Astrana Health acquired Prospect Health
• New Day Health acquired Dunes Hospice

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 Colorado home care 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 an Oklahoma private pay home care agency.

View Stoneridge closed transactions on our Website.

Home Health Index July 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.