Introduction

In March, the PAI decreased 6.51% month-over-month (MoM) and the S&P 500 decreased 5.09% over the same period. Year-to-date (YTD), the PAI and S&P have dropped 0.11% and 4.63% respectively.

Late in the month, HHS and CMS announced the 18 members that will serve on the newly created Federal Healthcare Advisory Committee (HAC). “These members bring deep expertise across care delivery, financing, innovation, and patient engagement. Their insights will help us advance higher-quality care, reduce administrative burden, and strengthen the sustainability of our programs, while supporting efforts to transform our healthcare system and restore a stronger focus on patients,” said CMS Administrator Dr. Mehmet Oz.

This committee will provide non-binding recommendations to HHS Secretary Robert F. Kennedy and CMS Administrator Dr. Mehmet Oz on how to finance healthcare through Medicare, Medicaid, the Children’s Health Insurance Program, and the Health Insurance Marketplace. The newly selected members have diverse experience and backgrounds across numerous sectors and will serve two-year terms on the HAC.

In late February, Enhabit announced that it would be acquired by the private equity firm, Kinderhook Industries LLC, for $1.1 billion in an all-cash transaction. The deal is expected to close in the second quarter of 2026, at which point Enhabit will be de-listed from the New York Stock Exchange.

“Thanks to its exceptional care teams and strong leadership, Enhabit has built a reputation for excellence across the healthcare industry. As a supportive partner, our role is to grow and foster the great work they’re already doing and to help remove barriers so their teams can stay focused on patients,” said Matt Bubis, Managing Director at Kinderhook.

“While public market performance softened in March, we continue to see active buyer interest across the home-based care sector,” said Ben Bogan, partner and managing director at Stoneridge Partners. “While it will be interesting to see how the newly appointed Healthcare Advisory Committee will impact Medicare and Medicaid policy through the remainder of the year, we’re seeing that well-positioned home health and hospice providers are continuing to attract interest from both strategic and financial buyers.”

Post Acute Care Index (PAI)

In March, Pennant’s stock price decreased 9.58% and was up 8.28% YTD. In its fourth quarter and FY 2025 Results, the Pennant Group announced total revenue of $289.3 million representing a 53.2% increase from the prior-year quarter. In addition, Q4 Adjusted EBITDA was $22.4 million, a 62.5% increase over the same period in 2024.

“2025 was a year of record-breaking performance and growth for Pennant,” said CEO Brent Guerisoli. “Our operational flywheel continues to gain momentum, even in the midst of accelerative expansion. Our growth wasn’t only significant in its magnitude—it was strategic, high-quality investment.” Late last year, Pennant acquired 54 home health, hospice, and personal care locations divested from Amedisys and UnitedHealth for $146.5 million.

Brookdale’s stock price decreased 10.59% in March but was up 26.78% YTD. In the company’s full-year 2025 results, it announced a Q4 net loss of $40 million compared to a net loss of $83.9 million in Q4 2024. The company’s Q4 Adjusted EBITDA was $105.6 million, a 7.1% increase over the same period in 2024. According to CFO Nick Stengle, “Brookdale’s fourth quarter results continued the positive momentum displayed throughout 2025, as we position Brookdale to capitalize on increasing industry demand in a suppressed supply growth environment. We are pleased with the results we delivered as we focus on operational excellence and delivering shareholder value.”

Aveanna’s stock decreased 12.5% during the month and is down 21.18% YTD. Despite the dip, the company announced strong performance in its Q4 2025 financial results. This included Q4 revenue of $662.5 million, a 27.4% increase from the prior-year period, and Q4 Adjusted EBITDA of $85.0 million, a 54% increase over the prior-year period. “2025 was a monumental year for Aveanna,” said CFO Matt Buckhalter. “Our team delivered exceptional performance across the business, generating annual revenue growth of 20.2% and Adjusted EBITDA growth of 74.8%. These results reflect the strength of our clinical model, the dedication of our caregivers, and the disciplined execution of our strategy across each of our segments.”

Conclusion

In March, public market performance declined across both the PAI and broader indices, despite continued strong operating results reported by publicly traded home-based care providers. While the formation of the Healthcare Advisory Committee introduces some uncertainty around future Medicare and Medicaid policy, it also reflects an ongoing focus on improving care delivery and reimbursement structures. As the industry moves further into 2026, buyer interest remains active, with strategic and financial groups continuing to evaluate new opportunities and advance transactions already underway.

Quote of the Month

“Hospice care is an invaluable part of the Medicare program, with evidence demonstrating that it is the preferred choice by patients and families when appropriate. While a 2.4% payment increase is a step in the right direction, more must be done to ensure that high-quality providers have the resources they need to operate in this demanding environment.”

– Jennifer Sheets, CEO of the Alliance for Care at Home

Read the Full Article Here: National Alliance for Care at Home Responds to the FY 2027 Hospice Proposed Rule

Stoneridge In the News:

The Pre-Sale Due Diligence Checklist for Healthcare Owners (2026 Edition) 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 March 2026 | Stoneridge Partners)

Recent Transactions From Around The Country

• Residential Home Health and Hospice acquired Covenant Home Health
• HouseWorks Holdings acquired A Caring Experience
• MedArrive acquired Inbound Health assets
• Sevita acquired ResCare Community Living
• Canyon Home Care & Hospice acquired Columbine Poudre Home Care

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the successful sale of a Kentucky I/DD agency.

View Stoneridge closed transactions on our Website.

Home Health Index March 2026 | 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.