Introduction

In August, UnitedHealth closed its $3.3 billion acquisition of Amedisys, concluding a two-year process navigating antitrust concerns from the Department of Justice (DOJ). Following the acquisition and as of August 14, 2025, Amedisys is no longer trading on the NASDAQ.

This marks UnitedHealth Group’s (NYSE: UNH) second major home health deal since its $5.4 billion acquisition of LHC Group in February 2023. LHC Group, like Amedisys, was a large, publicly traded home health provider that was delisted from the NASDAQ following its sale to UnitedHealth. Both companies now operate under UnitedHealth’s provider services arm, Optum. Together, these acquisitions reflect UnitedHealth’s strategy of expanding Optum’s home-based care platform and signal continued consolidation among major providers in the home health sector.

In broader news, the S&P continued to climb in August with a 1.91% month-over-month gain, bringing its year-to-date (YTD) performance to 9.84%. On August 7, 2025, the U.S. administration’s “Liberation Day” tariffs took effect, introducing broad, country-specific duties under a new reciprocal trade framework. Tariff levels varied by country, generally falling between 10% and 40%, as part of a tailored schedule aimed to incentivize bilateral negotiations.

However, the U.S. Supreme court is set to review the legality of these tariffs in November, following an August 29 ruling by lower courts that the administration had overstepped its authority by imposing the duties under the 1977 International Emergency Economic Powers Act (IEEPA). While the case brings uncertainty to the future of U.S. Trade Policy, the current tariff framework will remain in place until the Supreme Court has issued a final ruling.

“While ongoing trade negotiations created some market uncertainty in early August, deal flow and buyer interest in the Home Care space have remained strong,” said Joe Lynch, Partner and Managing Director at Stoneridge Partners. “We’re continuing to see robust dealmaking activity and motivated buyers pursuing new acquisition opportunities across the Home Care and Hospice sectors.”

Post Acute Care Index (PAI)

Following UNH’s acquisition of Amedisys and following the delisting of Amedisys from the NASDAQ, the PAI consists of the following companies:

• Addus Homecare
• Aveanna Healthcare
• Enhabit Home Health & Hospice
• Brookdale Senior Living
• BrightSpring Health Services
• The Pennant Group

Enhabit’s stock price rose 17.26% month-over-month (MoM) in August and is up 0.90% YTD. Early in the month, the company announced that its current CEO, Barb Jacobsmeyer, will step down in July 2026 or upon the appointment of her successor. According to Jeffrey Bolton, chairman to the company’s board of directors, “As we seek the right successor to drive our next phase of growth, we are committed to a smooth transition and remain focused on executing our mission.”

Meanwhile, Addus’ stock price increased 7.86% MoM in August and is down 8.12% YTD. Like Enhabit, the company also announced leadership changes during the month. On August 7, the company named Heather Dixon as President and COO, succeeding W. Bradley Bickham. Dixon is expected to enter the role in mid-September, and Bickham will serve as an advisor to CEO Dirk Allison until his planned retirement in March 2026.

After releasing strong Q2 financial results early in the month, Aveanna saw a 101.51% MoM increase in stock price, bringing its YTD growth to 75.05%. The company posted Q2 Adjusted EBITDA of $88.4 million, up 93.6% year over year. Q2 2025 revenue was $589.6 million, an increase of 16.8% from the same period in 2024. “Our team’s relentless focus on operational excellence, disciplined execution, and delivering strong clinical outcomes continues to drive our improved results,” said CFO Matt Buckhalter. “In addition, our successful acquisition of Thrive Skilled Pediatric Care expands both the scale and capabilities of our pediatric services.” Aveanna completed its acquisition of Thrive Skilled Pediatric Care on June 4, 2025.

BrightSpring also reported a strong monthly performance, with a 14.72% increase in stock price month-over-month and 39.11% YTD growth. In late January of this year, the company entered into a definitive agreement to divest its Community Living Business to Sevita for $835 million, which is expected to close in the fourth quarter of 2025. In its Q2 financial release, which excludes figures related to its Community Living Business, BrightSpring announced a 29.1% increase in net revenue and a 28.8% increase in Adjusted EBITDA compared to Q2 2024. CEO John Rousseau noted that “2025 has thus far been a very productive year for BrightSpring, as we continue to execute our strategy and deliver results for all stakeholders.”

Conclusion

August marked a pivotal month for the home health and post-acute care industry, with the close of UnitedHealth’s acquisition of Amedisys signaling the continued influence of large strategic buyers in the space. While shifting trade policies and global negotiations remain a backdrop for the broader economy, buyer interest in home health and hospice remains strong. With demand for home-based care growing and providers actively pursuing scale, the sector remains well positioned for sustained deal activity through the remainder of the year.

Quote of the Month

“Home health is a lifesaver for millions of seniors and their loved ones, especially in rural states like Oklahoma, where hospitals and nursing facilities may be hours away. Slashing home health payments not only undermines access to this critical benefit, but it also drives up overall Medicare costs by forcing patients into more expensive care settings. This bill ensures seniors can get the care they need at home, while protecting taxpayers from wasteful spending.”
– Representative Kevin Hern (OK-01). 

Read the Full Article Here: Hern, Sewell Introduce Home Health Stabilization Act

Stoneridge In the News:

Understanding Platform Acquisitions in Home Health & Hospice Mergers and Acquisitions (M&A) Read the Full Article Here – Blog written by Partner & Managing Director Ben Bogan.

See It To Believe It!

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:

• Addus (ADUS)
• 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 August 2025 | Stoneridge Partners)

*Amedisys left the PAI on August 14, 2025, following the company’s acquisition by UnitedHealth and it’s delisting from the NASDAQ.

Recent Transactions From Around The Country

• Addus HomeCare acquired Helping Hands Home Care Service
• The Pennant Group acquired Healing Hearts Home Health and Healing Hearts Outpatient Therapy
• BaneCare Management acquired Longwood Hospice

SOLD by Stoneridge!!!

• 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 August 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.