Introduction

In August, the National Post-Acute and Home-Based Care (PAHC) Index fell 1.86% month-over-month (MoM) versus its July 31 close. Meanwhile, the S&P 500 rose 2.67% MoM and remains up 12.33% year-to-date (YTD).

On August 3, Rep. Debbie Dingell (D-MI) introduced the Medicare at Home Act (H.R. 10020) in the House, with a companion bill (S. 5270) introduced two days later by Sen. Andy Kim (D-NJ). The bill would add a new home care benefit under Medicare Part B, separate from existing home health coverage, covering help with activities of daily living such as bathing and dressing, capped at 20 hours per week per beneficiary.

The bill is not a near-term change for operators — it has only been referred to committee, and any benefit would take at least two years to go into effect even if enacted. Still, its backers point to polling showing 93% of adults believe Medicare should cover home care, and note that unpaid family caregivers already provide more than $1 trillion in uncompensated care annually, reflecting continued political momentum toward expanding Medicare’s role in home-based care.

“Whether seniors are aging at home or individuals with disabilities need daily support, care should be accessible and affordable,” said Rep. Debbie Dingell (D-MI), the bill’s House sponsor. “It is a common-sense solution that makes care more affordable for people on Medicare.”

Separately, CMS’s proposed CY2027 home health payment rule, announced July 1, would raise aggregate Medicare payments to home health agencies by about 2.4%, or $420 million. The rule remains in proposed form, with no final rule yet issued.

On the hospice side, CMS finalized its FY2027 hospice payment rule on July 30, 2026, raising hospice payment rates by 2.3% (an estimated $755 million increase) for the coming fiscal year.

“With lawmakers now discussing a dedicated Medicare home care benefit on top of an already-active regulatory calendar, the long-term growth story for home-based care keeps getting stronger,” said Joe Lynch, Partner and Managing Director at Stoneridge Partners. “We’re continuing to see strong buyer interest across home health, home care, and hospice, with strategic acquirers and private equity-backed platforms alike moving quickly on quality assets.”

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

Addus fell 0.70% MoM but remains up 6.78% YTD. On August 3, the company reported second-quarter 2026 results, with net service revenue up 8.0% year-over-year to $377.4 million and Adjusted EBITDA up 11.9% to $49.2 million. Growth was aided by the HomeCourt Home Care acquisition in Indiana, which closed May 1.

“Our low leverage allows us to invest strategically and continue to pursue targeted acquisitions,” said Dirk Allison, Addus’ Chairman and Chief Executive Officer. “We remain disciplined in evaluating both clinical and non-clinical opportunities to enhance market density and geographic reach.”

Separately, Addus disclosed that Heather Dixon, President and Chief Operating Officer since September 2025, left the company effective August 7. W. Bradley Bickham was reappointed interim COO the same day, a role he has held twice before.

Pennant fell 8.83% MoM but is up 30.59% YTD. On August 5, the company reported second-quarter 2026 results, with total revenue up 35.8% year-over-year to $298.0 million and Adjusted EBITDA up 48.2% to $24.3 million, driven by strong admissions growth in its home health and hospice segment.

“Pennant delivered another strong quarter, putting us on pace to exceed the top end of our original full year guidance,” said Brent Guerisoli, Pennant’s Chief Executive Officer. “We are driving operational excellence across both segments, including at our recently-acquired operations in the southeast, even as we complete their integration. That process is unfolding ahead of our expectations.”

Brookdale fell 19.18% MoM but remains up 9.36% YTD. On August 5, the company agreed to acquire the real estate of 17 senior living communities it currently leases, for approximately $157 million, continuing its push to own more of its real estate footprint and reduce long-term lease obligations. Separately, the company reported second-quarter 2026 net income of $23 million, versus a net loss a year earlier.

“The acquisition of these 17 communities, currently leased by Brookdale, represents another positive step in Brookdale’s strategy to increase its ownership of real estate within our existing operating footprint and reduce long-term lease obligations,” said Nick Stengle, Brookdale’s Chief Executive Officer.

Aveanna rose 42.92% MoM and is up 64.26% YTD, by far the Index’s strongest performer this month. On August 24, affiliates of Bain Capital and J.H. Whitney priced a secondary offering of 15 million Aveanna shares at $11.75 apiece, below the stock’s $13.16 close two trading days earlier, for gross proceeds of approximately $176 million. RBC Capital Markets served as sole underwriter, with a 30-day option for the underwriter to purchase up to 2.25 million additional shares. Aveanna itself did not receive any proceeds from the sale. The offering cuts the sponsors’ combined ownership stake from roughly 50.7% to approximately 44.1%, and means Aveanna will no longer qualify as a Nasdaq “controlled company,” though it may continue to rely on related governance exemptions for up to one year.

Conclusion

The M&A backdrop across home health, home care, and hospice looks healthy heading into the fall. Every reporting company covered this month posted year-over-year revenue and earnings growth, and capital markets activity stayed brisk, from Brookdale’s real estate purchase to Aveanna’s sponsor secondary offering, both consistent with continued confidence in the sector. Longer term, the Medicare at Home Act signals continued political interest in expanding home-based care’s addressable market, even though any actual benefit remains years away, if it advances at all. Overall, buyer demand for quality home health, home care, and hospice assets appears to be carrying solid momentum into the back half of the year.

Quote of the Month

“National health care expenditures are expected to grow from over $3 trillion a year to over $7 trillion, and estimates are that between 3-10% of that amount is lost to fraud. Home health aide and hospice scams directly impact vulnerable elderly Americans and erode patient care. Kickbacks and companies that cut corners to deceive regulators about the nature of health care services or products deny patients the ability to make informed health care decisions and degrade the dignity of American consumers.”

– Assistant Attorney General Colin M. McDonald, DOJ Fraud Division

Read the Full Article Here: “The Fraud Division’s Enforcement Priorities” memo, August 13, 2026.

Stoneridge In the News:

The 24-Month Behavioral Health Outlook: Transitioning from Multiple Arbitrage to Operational Excellence Read the Full Article Here – Blog written by Associate Partner Peter Lynch

Confessions of a Former Operator: Why Surviving the Home Health Headwinds Now Demands Platform Scale Read the Full Article Here – Blog written by Associate Partner Will Putman.

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 August 2026 | Stoneridge Partners)

Recent Transactions From Around The Country

• RN Enterprises acquired Helping Hands Home Healthcare.
• Chapters Health System completed its affiliation with Housecall Providers.
• Chapters Health System and Preferred Care formed a joint venture for hospice care in Florida.

SOLD by Stoneridge!!!

View Stoneridge closed transactions on our Website.

The National Post-Acute and Home-Based Care Index August 2026 | Stoneridge Partners

From Joe Lynch, Publisher of “The National Post-Acute and Home-Based Care 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 Market Intelligence Page.