Introduction

In May, the S&P 500 increased 5.15% month-over-month (MoM), bringing its year-to-date (YTD) gain to 10.73%. Additionally, Enhabit announced on May 15 that it completed its $1.1 Billion acquisition by Kinderhook Industries.

“Today marks an exciting milestone for Enhabit as we officially begin our next chapter as a privately held company,” said President and CEO, Barb Jacobsmeyer. “With Kinderhook’s support, Enhabit will benefit from additional resources and expertise that will enable growth, strengthen our clinical capabilities, and expand access to high‑quality care for patients, families and the communities we serve.”

Enhabit became a private company on May 15 following the transaction and has been delisted from the New York Stock Exchange. As a result, the Post Acute Care Index (PAI) now consists of the following companies:

• Addus Homecare
• Aveanna Healthcare
• Brookdale Senior Living
• BrightSpring Health Services
• The Pennant Group

On May 13, The Center for Medicare and Medicaid Services (CMS) implemented a six-month nationwide enrollment moratorium on new hospice and home health providers as part of a broader effort to combat Medicare fraud. While existing providers remain unaffected, the temporary freeze prevents new enrollments and certain ownership changes that require a new Medicare enrollment application.

“Today we’re shutting the door on fraud—preventing new bad actors from entering Medicare while we aggressively identify, investigate, and remove those already exploiting them. This is about protecting patients, restoring integrity, and safeguarding taxpayer dollars,” said CMS administrator Dr. Mehmet Oz.

The moratorium is scheduled to remain in place through November 2026, though CMS retains the authority to extend the restriction if fraud concerns persist.

“With CMS’s enrollment moratorium limiting new market entry, strategic providers are turning to acquisitions as the path to near-term growth,” said Ben Bogan, Partner and Managing Director at Stoneridge Partners. “Competition for existing providers will intensify as buyer demand for smaller home health and hospice agencies increases. This supply-demand imbalance is likely to place upward pressure on valuations for quality assets in the months ahead.”

Post Acute Care Index (PAI)

Brookdale’s stock decreased 10.38% MoM in May, though it remains up 19.28% YTD. In addition, the company released its Q1 2026 financial results early in the month. Among the metrics provided, Brookdale announced Q1 2026 net loss of $7 million compared to a net loss of $65 million during the same period in 2025. Also, Q1 2026 Adjusted EBITDA was $131 million, up 5.6% over the same period last year.

“Over the past six months, we have executed on a significant number of meaningful changes that have Brookdale strongly positioned for the next wave of growth,” said Nick Stengle, Brookdale’s Chief Executive Officer. “Our pricing is improving, our organization and cost structure are more streamlined, and our portfolio optimization is proceeding as planned. The table is now set for Brookdale to capitalize on the compelling supply-demand dynamic shaping up in the senior housing macroeconomic environment and to drive durable growth.” In its Q4 2025 results, Brookdale announced plans to sell 29 owned communities during 2026, which the company expects will generate approximately $200 million in proceeds.

Pennant’s stock price increased 9.36% MoM during the month and is up 21.67% YTD. In its Q1 2026 results, the company announced total quarterly revenue of $285.4 million and quarterly Adjusted EBITDA of $21.7 million. These represent 36.0% and 32.6% increases respectively over the same period last year.

“Pennant is off to a strong start in 2026,” said Brent Guerisoli, the Company’s Chief Executive Officer. “After a year of dramatic expansion, we are driving operational excellence across both segments, including at our newly-acquired operations in the southeast, even as we complete their integration.”

In October of last year, the Pennant Group acquired 54 home health, hospice, and personal care locations in Tennessee, Georgia, and Alabama from Amedisys and UnitedHealth. The assets, which had a combined purchase price of $146.4 million, were sold as part of the regulatory approval process for UnitedHealth’s acquisition of Amedisys last August.

Aveanna’s stock increased 9.63% MoM in May, though it is down 12.24% for the year. Like Brookdale and Pennant, Aveanna also released its Q1 2026 financial results during the month. The company highlighted Q1 revenue of $647.9 million, representing a 15.9% increase over the prior-year period, and Q1 Adjusted EBITDA of $84.4 million, a 25.2% increase over the prior-year period.

Conclusion

May was marked by continued strength across the post-acute care sector, highlighted by favorable operating results and Enhabit’s completion of its acquisition by Kinderhook Industries. Meanwhile, CMS’s nationwide enrollment moratorium signals increased regulatory scrutiny that could influence market dynamics in the months ahead. As the industry moves into the second half of 2026, M&A activity is expected to gain momentum as strong demand for quality providers continues to outpace supply, further amplified by the nationwide moratorium on new hospice and home health providers.

Quote of the Month

“The Alliance welcomes the Administration’s focus on combatting fraud, waste and abuse and appreciates that CMS has indicated providers will still be able to conduct face-to-face recertification visits via telehealth during the enrollment moratorium, which will help avoid unnecessary care disruptions for patients and families. However, an enrollment moratorium does not distinguish between bad actors and compliant providers and will ultimately reduce competition and slow innovation. More importantly, an enrollment moratorium raises serious access-to-care concerns in areas where patient demand is growing or existing capacity is already strained, leading to longer wait times, reduced service availability and fewer choices for patients—particularly in rural or underserved communities.”

– The National Alliance for Care at Home

Read the Full Article Here: The Alliance Responds to CMS’s Announcement of Nationwide Enrollment Moratoria on Hospice and Home Health Providers

Stoneridge In the News:

Stoneridge Partners, Joe Lynch and Tom Lillis, provided sell-side M&A advisory services to HomeCourt Home Care in their transaction with Addus HomeCare Corporation Read the Full Article Here

The Non-Skilled Advantage: Private-Pay Valuation Trends Read the Full Article Here – Blog written by Partner & Managing Director Ben Bogan.

Stoneridge Partners, Joe Lynch and Tom Lillis, served as sell-side M&A advisors to HCF Management in connection with their partnership of Heritage Home Health Care and Legacy Hospice with Advanced Home Health and Hospice 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 five publicly traded post-acute care companies, all listed on the NASDAQ:

• Addus (ADUS)
• Aveanna (AVAH)
• BrightSpring (BTSG)
• Brookdale Senior Living Inc. (BKD)
• 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 May 2026 | Stoneridge Partners)

Recent Transactions From Around The Country

• Kinderhook Industries acquired Enhabit Inc.
• Stillwater Hospice acquired Campbell County Health Hospice
• Bristol Hospice acquired Hope Hospice & Palliative Care

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the successful sale of a Pennsylvania home care agency.

View Stoneridge closed transactions on our Website.

Home Health Index May 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.