Introduction

In July, the National Post-Acute and Home-Based Care (PAHC) Index rose 3.31% month-over-month (MoM) versus its June 30 close. Meanwhile, the S&P 500 was roughly flat MoM (-0.13%) though it remains up 9.41% year-to-date (YTD).

On July 1, CMS proposed its CY2027 home health payment rule, which would increase aggregate Medicare payments to home health agencies by approximately 2.4% ($420 million) for CY2027, even as CMS continues applying a separate 3% temporary adjustment to recoup prior-year overpayments. The proposal would also expand CMS’s ability to claw back payments retroactively to cover any Medicare enrollment revocation, add new grounds for denying or revoking enrollment, and allow skilled palliative care to be furnished and billed under the existing home health benefit.

“These proposals would give CMS stronger tools to protect Medicare beneficiaries and taxpayer dollars from fraud, waste, and abuse,” said CMS Administrator Dr. Mehmet Oz.

The National Alliance for Care at Home welcomed the payment increase but raised concerns about the separate 3% temporary adjustment, which it says is based on flawed underlying data. In a May 8 letter to CMS ahead of the proposed rule, the Alliance urged the agency to eliminate the adjustments entirely.

“Given the unreliability of the data and CMS’ determinations around budget neutrality, [and] the impact of localized fraud impacting CMS’ data and analysis, we urge CMS to eliminate all permanent and temporary adjustments determined and applied by the Agency to date in 2027,” wrote Jennifer Sheets, CEO of the Alliance, in the letter to CMS Administrator Dr. Mehmet Oz.

Separately, on July 30 CMS finalized its FY2027 Hospice Wage Index and payment rate update, raising aggregate hospice payments by 2.3% (approximately $755 million) for the fiscal year and increasing the hospice aggregate cap to $36,174.75, up from $35,361.44.

“As we pass the midpoint of 2026, the post-acute and home-based care M&A market continues to demonstrate strong momentum,” said Ben Bogan, Partner and Managing Director at Stoneridge Partners. “Buyer activity remains solid, with strategic acquirers and private equity-backed organizations actively evaluating new opportunities. The CMS enrollment moratorium has further strengthened demand for existing Medicare-certified providers. At Stoneridge Partners, we’ve experienced this momentum firsthand, successfully closing four transactions over the past 30 days while continuing to see a healthy pipeline of new opportunities.”

The National Post-Acute and Home-Based Care (PAHC) Index

BrightSpring fell 14.38% MoM but remains up 59.44% YTD – the Index’s best YTD performer. The company reported second-quarter 2026 results on July 31: net revenue of $3,873 million, up 23.0% year-over-year, and Adjusted EBITDA of $206 million, up 44.2% year-over-year.

“We are pleased with the Company’s second quarter results that reflect our quality focus, service level performance, and dedication to the patients we serve,” said Jon Rousseau, Chairman, President, and Chief Executive Officer of BrightSpring. “We remain grounded in disciplined operational execution and delivering high-quality and effective care.”

Brookdale fell 9.26% MoM but remains up 35.31% YTD. On July 16, the company announced it had acquired the 244-unit Brookdale Galleria independent living and assisted living community in Houston, Texas, for $23.4 million. Brookdale previously managed the community and now owns it outright, funding the purchase with cash on hand and its recently expanded credit facility.

“The Brookdale Galleria acquisition represents an exciting value-creation opportunity,” said Nick Stengle, Brookdale’s Chief Executive Officer. “This large high-rise community sits within the top-tier Galleria district of Houston. Current occupancy is below our consolidated average, and we believe we can reposition this asset through modest additional investment, on top of other recent renovations, to capture the economic potential that will accrue directly to Brookdale and its shareholders.”

Pennant rose 9.12% MoM and is up 43.23% YTD, the Index’s second-best YTD performer. On June 4, Pennant and Hartford HealthCare announced they are strengthening their multi-year collaboration through mutual investment in home-based care in Connecticut, with plans to transition it into a unified operating entity. The partnership, which began in May 2024, has helped Hartford HealthCare at Home earn its first 4-star CMS rating. Separately, on July 28 Pennant confirmed it will report second-quarter 2026 results on Aug. 5, with a conference call the following morning.

“Over the last two years, we have had a meaningful impact on quality, expanded access, improved patient outcomes, and advanced the long-term financial sustainability of homecare at HHC. This collaboration is a natural next step, and it underscores the strength of Pennant’s model to create scalable, high-performing home care operations that deliver high caliber value for patients, partners, the community and shareholders,” said Brent Guerisoli, Chief Executive Officer of Pennant.

Conclusion

July’s regulatory calendar was busy, but the overall picture appears encouraging. The proposed CY2027 home health rule would raise aggregate payments by approximately 2.4% while CMS continues to build out its enforcement tools, and the finalized FY2027 hospice rule delivers a comparable 2.3% increase alongside new quality-reporting requirements. With most of the Index reporting second-quarter results over the next two weeks, the sector appears to be entering the back half of 2026 on solid footing.

Quote of the Month

“While the proposed rate update results in increased payments relative to last year… the Alliance remains focused on working to stop unwarranted temporary adjustments that are based on a flawed methodology with underlying data integrity issues… Ultimately, federal policy must preserve patient access to care at home, which remains the preferred choice of care for millions of families.”

– National Alliance for Care at Home

Read the Full Article Here: The Alliance Responds to the CY 2027 Home Health Proposed Rule

Stoneridge In the News:

How to Sell a Hospice Agency: A Step-by-Step Guide for Owners Considering an Exit Read the Full Article Here – Blog written by Partner & Managing Director Ben Bogan.

See It To Believe It!

The Stoneridge Partners National Post-Acute and Home-Based Care Index is updated monthly and measures the performance of these five publicly traded post-acute care and home-based care companies, all listed on either the NYSE or 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 and Home-Based Care 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. (The National Post-Acute and Home-Based Care Index July 2026 | Stoneridge Partners)

Recent Transactions From Around The Country

• Family Hospice acquired North Georgia Community Hospice.
• LiveWell Partners acquired Michigan Community VNA Home Health and Hospice.

SOLD by Stoneridge!!!

• Stoneridge Partners is proud to announce the sale of a Louisiana hospice agency.
• Stoneridge Partners is proud to announce the sale of a Texas hospice agency.
• Stoneridge Partners is proud to announce the sale of an Arizona home health agency.
• Stoneridge Partners is proud to announce the sale of a Tennessee home care agency.

View Stoneridge closed transactions on our Website.

The National Post-Acute and Home-Based Care Index July 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.