Amedysis, LHC Group Stock Down in December
Amedisys, LHC Group Stock Down in December
Home health stocks were back down in December, failing to escape the broader market’s downward turn.
Indeed, home health stocks dropped 13.59% in December compared to November, the most recent Home Health Index (HHI) from mergers and acquisitions firm Stoneridge Partners shows. Updated on a monthly basis, the HHI tracks the market values of two of the nation’s largest publicly traded home health companies: Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG).
While home health stocks plunged more than 13%, the S&P 500 also plummeted 8.91% in December over the previous month, according to the HHI. In general, though, the index has far outperformed the S&P 500 since 2004.
“This is actually one of the very rare instances over the past several years where we’ve seen home health stocks actually fall behind the broader market,” Stoneridge Partners President Rich Tinsley said. “That’s somewhat surprising, though I don’t except that trend to continue for long. Even with the Patient-Driven Groupings Model (PDGM) on the horizon, it’s a promising landscape for the home health industry due to macro-level factors, including consumer demand.”
Stock prices for Amedisys and LHC Group both dropped by double digits in December.
Amedisys — headquartered in Baton Rouge, Louisiana, with an executive office in Nashville, Tennessee — saw its stock drop 15.29% in December compared to November, according to HHI.
Meanwhile, Lafayette, Louisiana-based LHC Group saw its stock drop by 11.37% in December over the previous month.
In addition to Amedisys and LHC Group, Stoneridge Partner’s HHI also monitors the stock value of Frisco, Texas-based Addus HomeCare Corporation (Nasdaq: ADUS). Stoneridge does not include Addus in the final HHI calculation, however.
Similar to Amedisys and LHC Group, Addus, which derives most of its revenue from Medicaid sources, saw its stock drop 9.79% in December compared to November.
Quote Of The Month
“Site of care, we continue to believe, is going to move from an institutional mindset, where everything is done institutionally, to a much lower-cost setting, including the home and digital” – Bruce Broussard, CEO and president of Humana Inc.
Read the Full Article Here: Humana CEO: Home-Based Care, Social Determinants of Health ‘Most Impactful’ to Health Care System
See It To Believe It!
The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these two publicly traded home health companies, all listed on the NASDAQ:
- LHC Group (LHCG)
- Amedisys (AMED)
This graph compares the percentage of the Home Health Index to the percentage change in the S&P 500 Index going back to 2002.
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
This graph displays HH Index performance since 2002.
This graph compares the HH Index to the price of Addus stock (non-Medicare).
(Home Health Index January 2019 | Stoneridge Partners)
Here are the results of the stock prices for the past two years:
|Company||12/31/18||1 mos change||YTD change||12/31/17||12/31/16|
Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.
Enterprise Value (EV)
|EV (in M)||12/31/18||12/31/17||12/31/16|
|HH Index Total||6960||3888||3015|
Enterprise Value (EV), aka Selling Price, as Percent of Revenue
|HH Index Average*||217%||120%||103%|
Multiples of EV/EBITDA
Think of this as selling price as a multiple of EBITDA.
|HH Index Average*||23.48||16.38||14.26|
The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company to it’s reporting. (Home Health Index January 2019 | Stoneridge Partners)
Recent Transactions From Around The Country
- AccentCare Inc. of Dallas, TX acquired Steward Home Care and Hospice
SOLD!!! By Stoneridge
- Stoneridge Partners represented a Florida based Home Healthcare agency that closed December 2018
- Stoneridge Partners represented a Florida based Healthcare agency that closed December 2018
Exclusively Listed For Sale By Stoneridge Partners
|State||Agency Profile||Status||Reference Number
|Arizona||$2+ million home care agency in Southern Arizona. Diverse payor sources (Medicaid/Private Pay/ W/C. Diverse referral sources. Great reputation.||Available|
|Arizona||Medicare/Medicaid certified Home Health Agency. $1.8 million in annual revenue. 90% Medicaid/10% Medicare. Phoenix metropolitan area. Accredited. 5 star rating.||Available|
|California||$6 million revenue. Hyrbid payor mix - 70% in network, 20% out of network, 10% private cash pay. Destination oriented treatment facility. 48 residential beds and 6 detox beds. JCAHO accredited. Beautiful property with more adjacent available for purchase. Tons of amenities.||Available|
|California||$5 million revenue with $1.25 million EBITDA. Full continuum treatment center. 3 residential houses, 2 sober living and 1 outpatient. JCAHO certified. Private pay and out of network.||Available|
|California||$2+ million revenue. $550,000 net profit. 28 bed, 4 facilities. Full continuum of care treatment center in California. Growing quickly with a large wait list. 10 bed detox license. Gorgeous real estate for sale or lease. Great reputation and referrals.||Available|
|California||Growing $1.9 million revenue. Private pay. Independently owned. Full staff in place.||Available|
|California||32 bed detox and residential treatment center. Great location and setup. In network. Large growth with a waiting list. Seeking loan/debt investment. Attractive income option for investor.||Available|
|California||Trauma treatment facility. Searching for real estate partner to buy property and lease back, as well as further expansion. Great business plan and current growth and new contracts. Great results and outcomes.||Available|
|Colorado||65 bed full continuum treatment center in Mountain West. #1 million EBITDA. Motivated seller seeking timely close. Great census and solid numbers.||Available|
|Florida||Medicare/Medicaid certified home health agency. $2.5 million annual revenue. 5-star. Accredited. District 10.||Available|
|Florida||$2.5 million Medicare agency in Port St. Lucie. Great reputation and clinicals.||Available|
|Florida||$1.5 million non-skilled private duty home health business. Strong management team in place. District 1.||Available|
|Florida||Medicare certified home health agency. Accredited. Minimal census. District 3.||Available|
|Georgia||ID/DD Services. $1 million revenue. Residential and Day Services. Atlanta Suburb.||Available|
|Illinois||$5.5 million accredited Medicare agency located in northeastern Illinois. Strong bottom line. 4 1/2 star rating by CMS.||Available|
|Illinois||$2.8 million Home Health agency. 100% Medicare. Loyal caregiver and patient base.||Available|
|Indiana||$6 million annual revenue. Medicare/Medicaid home health agency. Serves Valparaiso and surrounding areas. CHAP accredited||Available|
|Indiana||Greater Indy metro area. $6 million revenue. Medicare certified. Diverse payor mix. Long history in the community.||Available|
|Indiana||$2 million Medicare home health agency. Recent improvements, poised for growth. Great referral relationships.||Available|
|Maryland/DC/Virginia||Large Medicare & Medicaid home care agency. Poised for continued growth.||Available|
|Massachusetts||$10+ million Medicare and Medicaid certified Home Health agency. Diverse payor sources. Strong Management in place.||Available|
|Minnesota||$8 million Medicaid agency. Well-established in metropolitan service area with staff in place.||Available|
|New York||LHCSA in New York metro area. $10 million annual revenue. Consistent growth year over year.||Available|
|New York||Annualizing at $1.3 million revenue. 40% Non-Medicare/Private Insurance skilled nursing. 45% Managed LTC. Southern New York. Joint Commission Accreditation.||Available|
|North Carolina||$1 million ID/DD Agency. Long-term client base. Growth potential with real estate. Strong margins.||Available|
|Ohio||Medicare/Medicaid agency in Columbus area. $4.5 million annual revenue. Long-standing reputation in the community. Profitable.||Available|
|Ohio||Southeastern Ohio. $3.5 million annual revenue. Diverse referral source mix.||Available|
|Ohio||Medicare/Medicaid home health agency. $250,000 annual revenue. Accredited.||Available|
|Oregon||$1.4 million Private Duty business located in Central OR. Serving an affluent community near local resort for over 30 years. Long term employees in place with well-established referral base.||Available|
|Pennsylvania||Private duty, non-medical home care company. $9.9 million current annual run rate. Eastern Pennsylvania. Highly profitable. Strong management team in place.||Available|
|Pennsylvania||$4.3 million revenue. Home health, home care and hospice agency. 18% bottom line.||Available|
|Southeastern US||$9+ million revenue with 16% bottom line. Home health with multiple locations. Regional presence with high star ratings. Nationally recognized for excellent patient outcomes. Lots of opportunity for growth.||Available|
|Southwest||$25 million in annual revenue. Provider of Waiver and ICF ID/DD Services. Statewide Platform. Strong management team. Excellent reputation for quality services.||Available|
|Southwest||$5+ million outpatient treatment center. Fully accredited. 37 beds. Recently revamped to increase growth and margin. Great census, UR, acquisition and solid numbers. Out of network and transitioning some in network.||Available|
|Tennessee||Great opportunity for isolated campus setting full continuum SUD and mental health treatment center. Appalachian Mountain area. 8,700 square foot building currently on premises, professional kitchen, 6 bedrooms, 7 full baths, 4 half baths, swimming pool, tennis court. Hour away from metropolitan area.||Available|
|Texas||Almost 100% Medicare. Texas based home health agency. $6+ million revenue. Extremely profitable. Perfect surveys with a 4-star rating and consistently ranked as a top agency in the country.||Available|
|Texas||$3.5 million home health agency in Houston (metro). Diversified agency - 70% Medicare, 30% private pay. Inherent capacity for growth.||Available|
|Texas||$3+ million hospice agency based in Dallas/Fort Worth. Well established. Clinically clean and growing. Full staff in place.||Available|
|Texas||$1 million revenue. Very clean and well established home health agency in the heart of West Texas. Fully staffed and ready for a new owner to step right in.||Available|
|Texas||$450,000+ Medicare certified Dallas area home care company. Fully staffed & clean clinically.||Available|
|Texas||165 patient pediatric home care company in Houston, TX. Diverse referral network. Systems and staff in place.||Available|
|Texas||Clean hospice provider number. Located in the Ft. Worth, TX area.||Available|
|Texas||Clean hospice provider number. Located in West Texas.||Available|
|Upper Midwest||$7.6 million revenue. Profitable home health and hospice. JCAHO accredited. 4-star rating. Ranked as a top performer in agency outcomes||Available|
|USA||Medicare certified home health agency and hospice. Providing home health, personal care, and hospice services. $14.5 million current annual run rate. Strong financials. Accredited. Strong management team in place. Excellent reputation and outcomes. Multiple locations. Franchise to one of the nations top franchisors.||Available|
|Virginia||$1.2 million private duty/private pay home health business in Northern Virginia. Located in one of the most affluent counties in the country where the elderly population growth is outpacing the nations.||Available|
|Washington DC||Opportunity to establish a Medicare/Medicaid home health agency. Certificate of Need subject to regulatory approval. Rare offering.||Available|
|Georgia||$2 million home health agency. Private duty in great location. Well-established business. Staff in place.||Under Contract||
|Florida||$9.5 million Home Health Agency located on Florida's East Coast. Very strong operationally, clinically, and financially. 99% of revenue comes from traditional Medicare. 5 star rating.||Under Contract||
|Florida||Medicare certified home health agency. $4.7 million in revenue. Accredited. 4.5 stars. District 7. Great management team in place.||Under Contract||
|Florida||Non-skilled home care agency. $600,000 in annual revenue. Outstanding reputation and quality service. Key staff in place. District 5.||Under Contract||
|Florida||Medicare certified home health agency. District 10. Census: Minimal. Accredited.||Under Contract||
|New Mexico||$2.5 million New Mexico home health agency. 87% Medicare. Long history in the community. Staff in place.||Under Contract||
|Ohio||$2 million ID/DD Provider. Diversified services. Highly profitable (20%+). Tenured management with growth opportunities.||Under Contract||
|Pacific Northwest||$ 3 million full continuum of care substance abuse treatment facility. Long time, well established business. Mostly Medicaid. Great opportunity.||Under Contract||
|Southeast/Midwest||8 locations, 6 cities with over 100 employees. Mental health/Psych/Therapy/Counseling/School based/SUD IOP pilot. $4.5 million revenue. $750,000 EBITDA. Huge growth opportunity and great business, reputation, and numbers.||Under Contract||
|South Central US||$24 million annual revenue. Home health/Home care agency with small hospice operation. Well diversified payor mix. Medicare certified Multi State agency. Accredited. Strong management team in place.||Under Contract||
|Texas||$3.6 million Hospice, home health and palliative care agency. 90% Traditional Medicare. Service area in 13 counties around Harris County. CHAP accredited. Staff in place.||Under Contract||
|Western Pennsylvania||$2.8 million Home Health agency in Western Pennsylvania. Family owned since 1994. Outstanding local reputation. CHAP certified.||Under Contract||
|Texas||$2.3 million Medicare revenue. 85% Traditional Medicare. Service area in 5 counties around Taylor County, as well as Region 2 & 9.||Under Contract||
|Texas||$1 million Medicare certified agency. Licensed in 7 counties in the Houston area. 80% is traditional Medicare.||Under Contract||
|Virginia||$6 million Medicare certified agency in Northern Virginia.||Under Contract||
Do you know of any acquisitions that have taken place? We are interested in your comments. At the top of this column is a “Contact Tab” with a section for comments. These can be sent anonymously and the return email address can be left blank.
Another Cartoon Favorite
Home Health Index January 2019 | Stoneridge Partners