Introduction 

In October 2025, the Post Acute Care Index increased 1.51% month-over-month (MoM), while the S&P 500 rose 2.27% during the same period and 16.30% year-to-date (YTD).

The U.S. government entered a shutdown on October 1 after federal funding lapsed with lawmakers unable to agree on a fiscal 2026 spending package or pass a continuing resolution. The impasse stemmed largely from partisan disagreements over proposed changes to Medicaid funding and extensions of Affordable Care Act premium subsidies. With no agreement reached in the Senate through October, the shutdown surpassed the 35-day closure that occurred in December 2018—making it the longest in U.S. history.

As the shutdown extended into November, attention also turned to the proposed CY 2026 home health payment rule from the Centers for Medicare & Medicaid Services (CMS). Announced on June 30, 2025, the rule outlines an estimated 6.4% aggregate reduction in Medicare reimbursements to home health agencies—roughly $1.13 billion less than 2025 levels. While the rule remains under review, the ongoing government shutdown has introduced uncertainty and delayed its finalization, leaving providers awaiting clarification on the timeline for implementation. Final payment rules for home health agencies are typically published in early November.

“Despite the uncertainty surrounding federal healthcare policy amid the ongoing government shutdown, the demand for care at home remains as strong as ever,” said Joe Lynch, Partner and Managing Director at Stoneridge Partners. “We’re continuing to see robust deal activity in the home health and hospice spaces as motivated buyers seek acquisition opportunities while others explore exit strategies.”

Post Acute Care Index (PAI)

Enhabit posted a 1.50% MoM stock increase in October and is up 4.10% YTD. In its third-quarter financial results, the company reported net service revenue of $263.6 million and Adjusted EBITDA of $27 million, representing year-over-year increases of 3.9% and 10.2%, respectively. CEO Barb Jacobsmeyer stated, “Our third quarter results reflect strong execution on our core strategic priorities, with year-over-year growth in revenue, census and Adjusted EBITDA.” While Enhabit searches for her replacement, Jacobsmeyer intends to step down from her role in July 2026 or upon the appointment of a successor.

Addus reported a 0.93% MoM decrease in stock price in October and is down 6.75% YTD. The company recently announced Q3 2025 net service revenues of $362.3 million, up 25% from the same period in 2024. Additionally, Addus posted Q3 Adjusted EBITDA of $45.1 million, representing a 31.6% increase from Q3 2024. CEO Drik Allison noted “Our personal care business was the key driver of our growth and accounted for 76.1% of our revenues for the third quarter,” adding that “These results include the addition of recent acquisitions, including the Gentiva personal care operations on December 2, 2024, and Helping Hands Home Care Service, Inc. on August 1, 2025.”

Aveanna posted a 2.03% MoM increase in stock price during the month and is up 98.03% for the year. The company announced third-quarter revenues of $621.9 million, and Q3 Adjusted EBITDA of $80.1 million. CFO Matt Buckhalter stated that “Our third-quarter results are highlighted by revenue and Adjusted EBITDA growth of 22.2% and 67.5%, respectively, compared to the prior year period. Our team’s relentless focus on operational excellence, disciplined execution, and delivering strong clinical outcomes continues to drive our improved results.”

The Pennant Group’s stock price decreased 1.94% MoM in October and is down 6.75% YTD. For Q3 2025, the company announced total revenue of $229.0 million, representing a 26.8% increase from Q3 2024. Additionally, Adjusted EBITDA for the third quarter was $17.3 million, representing a 14.5% increase over the same period in 2024. According to CEO Brent Guerisoli, “In the third quarter we achieved record breaking performance in each of our segments, including all-time highs in senior living occupancy, hospice average daily census, and home health admissions.”

Conclusion

While a stalemate in Congress led to a prolonged government shutdown in October, home health and hospice providers posted strong results for the third quarter of 2025. Entering the year’s final stretch, companies in the PAI appear well-positioned for sustained growth and continued M&A activity heading into 2026.

Quote of the Month

“Home health care is one of Medicare’s most essential benefits. It allows older adults and people with disabilities to recover safely at home, helps hospitals discharge patients more efficiently, reduces costly readmissions, and saves taxpayers money. Patients value it, families depend on it, and our health care system cannot function effectively without it.”
– National Alliance for Care at Home 

Read the Full Article Here: HCAF Joins National Coalition to Oppose CMS’s Proposed Medicare Home Health Cuts

Stoneridge In the News:

Understanding Home Health and Hospice Business Valuation: Synergies vs. Addbacks Read the Full Article Here – Blog written by Partner & Managing Director Ben Bogan.

Stoneridge Partners, Ben Bogan and Ted Cohen, provided sell-side M&A advisory services in the Addus HomeCare and Del Cielo Home Care Services transaction. Read the Full Article Here

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 October 2025 | Stoneridge Partners)

Recent Transactions From Around The Country

• Uplift Hospice acquired Grace Hospice & Palliative Care and Grace Medical Group
• Hospice of the Chesapeake acquired Partners in Care
• Frontline Healthcare Partners acquired Integracare

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the successful sale of a Texas home care agency.
• Stoneridge Partners is proud to announce the successful sale of a New Mexico home care agency.
• Stoneridge Partners is proud to announce the successful sale of a California behavioral health agency.

View Stoneridge closed transactions on our Website.

Home Health Index October 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.