Introduction

Companies in the Post Acute Care Index (PAI) posted strong stock performances in November, with each business in the index seeing notable gains during the month. The PAI increased 6.14% month-over-month (MoM), with the S&P rising 0.13% during the same period and 16.45% year-to-date (YTD).

Midway through November, the 43-day government shutdown that began on October 1 ended when a funding measure passed through both chambers of Congress. The continuing resolution extended appropriations for many agencies, including the Department of Health and Human services, through January 30, 2026, with only a few departments such as Agriculture, Military Construction, and Veterans Affairs being funded through the end of FY 2026.

The bill also provided back pay for all federal employees that were not compensated during the shutdown and temporarily extended provisions related to telehealth flexibilities and the hospital-at-home waiver. The resolution did not, however, extend tax credits related to the Affordable Care Act (ACA) that are set to expire at the end of 2025.

In late November, CMS finalized its long-anticipated CY 2026 Medicare home health payment rule, choosing a far smaller cut than the one initially proposed in June. The final rule results in a 1.3% overall decrease to Medicare home health payments for 2026, compared to the much steeper 6.4% reduction outlined in the proposed rule. While the update still lowers reimbursement for home health agencies next year by an estimated $220 million, it softens the impact considerably and provides more stability than many expected.

“November was a notable month for the home-based care space, marked by the delayed release of the home health payment rule and the conclusion of a record-setting government shutdown,” said Ben Bogan, Partner and Managing Director at Stoneridge Partners. “While some regulatory uncertainty remains, which is not unusual in this sector, M&A activity remains strong as buyer interest for home care, home health and hospice acquisition opportunities continues with many groups pushing to close transactions currently under LOI before year-end and actively building their pipelines for the new year.”

Post Acute Care Index (PAI)

In November, Brookdale posted a 20.06% MoM increase in stock price and a solid 121.27% gain YTD. The company announced Adjusted EBITDA of $111.1 million for Q3 2025, representing a 20.4% increase from the same period in 2024. According to CEO Nick Stengle, “Brookdale’s solid third quarter results highlight the underlying strength of our company amidst the accelerating tailwind from increasing demand for senior living coupled with suppressed inventory growth.”

Additionally, Brookdale recently announced that it would appoint its current Interim Executive Vice President of Community and Field Operations, Mary Sue Patchett, to Chief Operating Officer effective December 1, 2025. “It has been over 10 years since Brookdale formally appointed a COO and Mary Sue is the right leader during this transformative time at Brookdale,” said Stengle.

The Pennant Group posted a MoM stock price increase of 12.01% in November, and a 4.45% gain YTD. Pennant continues to integrate the 54 home health, home care, and hospice locations it acquired from UnitedHealth and Amedisys on October 1. These assets were divested as part of a Department of Justice (DOJ) antitrust settlement that required the companies to sell certain operations in order to complete their merger. According to COO John Gochnour, “This is the largest transaction we’ve completed in our history, but it fits squarely within our disciplined acquisition strategy. We are well-positioned to effectively transition and unlock additional potential in these assets and further expansion in the region.”

BrightSpring saw a 9.41% MoM increase in stock price during the month, bringing its YTD gain to 112.33%. In its Q3 financial results, the company announced quarterly net income of $37.5 million compared to net loss of $25.7 million in the same period last year. Adjusted EBITDA also increased by 37.2% from Q3 2024 to $160 million. “We are pleased with our third quarter organizational results,” said CEO Jon Rousseau. “The performance in the quarter and ongoing progress throughout the year have been underpinned by our ability to deliver high-quality, patient-centric, and lower-cost care across the Pharmacy and Provider segments.” In addition to Pennant, BrightSpring is expected to acquire a portion of the assets divested from UnitedHealth and Amedisys.

Conclusion

As 2025 draws to a close, November offered a clearer outlook for the home-based care sector. The resolution of the federal shutdown and the release of the CY 2026 home health payment rule brought long-awaited clarity, while strong stock performance across the PAI demonstrated continued momentum among industry leaders. With buyer interest remaining strong and many groups actively pursuing new opportunities, the sector is poised to carry this momentum into the new year.

Quote of the Month

“Home-based care is a national treasure, preferred by patients and families for a wide array of care and support services. National Care at Home Month provides an opportunity for the care at home community to stand together with one voice and highlight the value of these essential types of care and help. Patients, providers, and community members work to continue building critical awareness and protect access to home-based care for millions of Americans nationwide.”
– Dr. Steve Landers, CEO of the National Alliance for Care at Home 

Read the Full Article Here: The Alliance Celebrates National Care at Home Month 2025

Stoneridge In the News:

How Selling a Home Health or Hospice Agency is Like a Fine Art Auction 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 November 2025 | Stoneridge Partners)

Recent Transactions From Around The Country

• LifeCare Home Health acquired Infinity Hospice Care
• Linden Capital Partners acquired Agape Care Group
• Agape Care Group acquired Community Hospice of South Alabama

SOLD by Stoneridge!!!

View Stoneridge closed transactions on our Website.

Home Health Index November 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.