Introduction

In December 2025, the PAI finished off the year with a 5.76% decrease month-over-month (MoM) while the S&P 500 decreased 0.05% over the same period.

Over the course of 2025, several notable events took place both in and out of the home-based care space. The new administration took office in January, raising questions about how healthcare and business-related policy would be affected. In April, a wave of new tariff policies dominated headlines and shocked markets; however, the S&P 500 made a full recovery, ending the year with a 16.4% gain.

In mid-August, the long-delayed merger between UnitedHealth and Amedisys, originally announced in June 2023, finally closed. The $3.3 billion deal had faced significant regulatory scrutiny, including an antitrust lawsuit from the Department of Justice (DOJ), which delayed the closing for two years. Ultimately, the two companies arrived at a settlement with the DOJ that required the divestment of 164 home health and hospice locations in order for the merger to proceed. BrightSpring and the Pennant Group both agreed to absorb portions of the divested assets.

On October 1, the U.S. government entered a record-setting shutdown, delaying the release of the CY 2026 Medicare home health payment rule. After the shutdown ended in mid-November, CMS announced the finalized payment rule which includes a 1.3% overall decrease to Medicare home health payments for 2026; a much smaller reduction than the 6.4% cut originally proposed in June.

“From draconian rate cut proposals to massive mergers, and government shutdowns to technological advances via AI, 2025 has been a memorable year in the post-acute health care space. Through all of this, the M&A marketplace has remained active, and we expect it to continue its brisk pace throughout 2026,” said Joe Lynch, Partner and Managing Director at Stoneridge Partners.

Post Acute Care Index (PAI)

Enhabit posted a 3.13% MoM increase in stock price in December and a 2025 gain of 18.05%. The company opened two hospice de novos in Q3 and reported a 72.0% increase in its Hospice segment Adjusted EBITDA during that period.

Back in August of 2025, Enhabit announced that its current CEO, Barb Jacobsmeyer, intends to step down from her role in July 2026 or upon the appointment of a new CEO. According to Jeffrey Bolton, chairman of Enhabit’s board of directors, “Barb has helped to stabilize the business during her tenure and enabled the company to build on our momentum. 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.”

During the month, Aveanna posted a 12.53% MoM decrease in stock price and a 78.77% gain in 2025. In November, the company announced third-quarter revenue of $621.9 million and third-quarter Adjusted EBITDA of $80.1 million, representing a 22.2% and 67.5% gain respectively over the same quarter in 2024.

Addus saw a 10.66% MoM decrease in stock price in December, ending the year down 14.33%. In its Q3 results, the company announced that it had completed its acquisition of Del Cielo Home Care Services on October 1. “We are delighted to welcome the employees of Del Cielo to the Addus family,” said Addus Chairman and CEO Dirk Allison. “This acquisition will further expand our personal care coverage in Texas, adding to the markets we are already serving with the Gentiva acquisition and supporting our strategy to create greater density in the states where we operate.” Stoneridge Partners provided sell-side advisory services to Del Cielo in the sale of their personal care operations.

Brookdale’s stock price decreased 3.05% MoM in December with a year-end increase of 114.51%. On December 1, the company appointed Mary Sue Patchett to the position of Chief Operating Officer. According to CEO Nick Stengle, it has been over 10 years since Brookdale officially appointed a COO. “I’m honored to step into this role,” said Patchett. “We have an incredibly talented team in place and together I’m confident we will continue enriching the lives of seniors and their families.” Patchett previously served as Brookdale’s Interim Executive Vice President of Community and Field Operations.

Conclusion

December closed out a year marked by meaningful policy developments and continued consolidation across the home-based and post-acute care sector. Key events, including the resolution of the UnitedHealth–Amedisys merger, the conclusion of the federal government shutdown, and the release of the finalized CY 2026 Medicare home health payment rule, helped bring greater clarity to the operating and regulatory environment as 2025 wound down. As the industry enters the new year and operators return from the holidays, it is expected that M&A activity will remain robust as buyers evaluate new opportunities and work to complete transactions already in progress.

Quote of the Month

“Home health care options provide patients with high-quality care at lower costs, reduce the risk of hospital-acquired infections, and increase recovery outcomes for patients. Extending this commonsense policy is a clear win for patients and taxpayers. I am proud to co-lead these efforts with Rep. Buchanan and thank my House colleagues for passing this legislation to give patients the ability to recover in the comfort of their own homes.”
– Rep. Lloyd Smucker (PA-11)

Read the Full Article Here: The House Passes Smucker Legislation to Extend Successful “Hospital at Home” Programs

Stoneridge In the News:

Why M&A Activity Naturally Slows Down During the Holidays Read the Full Article Here – Blog written by Partner & Managing Director Ben Bogan.

Year-End Checklist: Five Financial Moves to Increase Your Home Health Agency’s Valuation (Preparing for Q1 2026) 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 December 2025 | Stoneridge Partners)

Recent Transactions From Around The Country

• Bristol Hospice acquired DaySpring Hospice in Alabama
• Traditions Health assets were acquired by VitalCaring, The Care Team, Mission Healthcare, and LifeCare Home Health Family

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the successful sale of a Florida home health agency.
• Stoneridge Partners is proud to announce the successful sale of a Florida home health agency.
• Stoneridge Partners is proud to announce the successful sale of a Texas home health agency.

View Stoneridge closed transactions on our Website.

Home Health Index December 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.