Home Health Stocks Continue to Rise as Post-Acute Care Stock Values Fall

More than three months after the beginning of the nationwide quarantine due to COVID-19, the U.S. economy has showed signs that it is stabilizing. But according to the latest Home Health (HHI) and Post-Acute Care (PAI) Indices from national healthcare mergers and acquisitions firm Stoneridge Partners, not all post-acute care providers have been as lucky.

The HHI for June rose by 5% over May’s results, but the PAI went in the opposite direction – dropping more than 3% last month as the coronavirus continues to affect the senior care industry.

“I’m not surprised that home health stocks continued to tick up last month,” said Stoneridge Partners President and CEO Rich Tinsley. “Post-acute care stocks, on the other hand, took a slight – but expected – tumble. It makes sense when you think about the impact this virus is having on the industry. People still have concerns about congregate care right now, but home-based care is looking good.”

Home Health Index

The Stoneridge HHI follows the stock values of Baton Rouge, Louisiana-based Amedisys, Inc. (Nasdaq: AMED) and Lafayette, Louisiana-based LHC Group, Inc. (Nasdaq: LHCG).

Amedisys stock values rose more than 3% in June over May, while LHC Group stock increased 7% during that same period, leading to a 5% improvement for the overall HHI in June. In comparison, the S&P 500 rose by just less than 3%.

Post-Acute Care Index

Stoneridge tracks stock values for post-acute care companies in its PAI, which also includes Amedisys and LHC Group, as well as Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group, Inc. (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living (NYSE: BKD).

Even including the positive results from Amedisys and LHC Group, the PAI still dropped just more than 3% overall in June. Brentwood, Tennessee-based Brookdale took the biggest month-over-month fall – with a business model that’s mostly centered around senior living communities, Brookdale’s stock value plummeted by more than 19% last month.

“Senior living operators like Brookdale have been hit hard by the coronavirus,” Tinsley said. “It’s going to take them longer to rebound than it will for home health companies.”

Meanwhile, Birmingham, Alabama-based Encompass saw its stock values fall by more than 15%. Encompass operates a mix of inpatient rehabilitation hospitals, home health and hospice agencies.

Eagle, Idaho-based Pennant Group — which operates home health, hospice and senior living businesses — saw its stock dip more than 11% in June compared to May. And stock values for Frisco, Texas-based Addus, which focuses on Medicaid home-based care, fell more than 6%.

“Post-acute providers offering a diverse mix of services have been better able to weather the pandemic overall, but they still don’t have the stability of in-home, Medicare-reimbursed providers like Amedisys or LHC Group right now,” Tinsley said.

Quote Of The Month

“Much of the burden of COVID-19 on older adults has rightly been focused on long-term care facilities, where the majority of deaths have taken place,” – Dr. Madhuri Reddy, co-founder and chief medical officer at CareAcademy.

Read the Full Article Here: Home Care Agencies Starting to ‘Wake Up’ to Infection Control

Articles Featuring Stoneridge

Stoneridge Partners has a new updated website. Visit it here: Stoneridge Partners

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 July 2020 | Stoneridge Partners)

Here are the results of the stock prices for the past two years:

Company 6/30/20 1 mos change YTD change 6/30/19 6/30/18
Amedisys 198.54 +3.27% +19.46% 121.41 86.7
LHC Group 174.32 +6.77% +26.54% 119.58 85.34
HH Index* 186.43 +4.91% +22.67% 120.50 86.02
S&P 3100.29 +1.81% -4.04% 2941.76 2706.92
Addus 92.56 -6.91% -4.79% 74.95 56.7

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) 6/30/20 6/30/19 6/30/18
Amedisys 6730 4270 2880
LHC Group 5830 3770 2950
HH Index Total 12560 8040 5830
Addus 1280 945 637


Enterprise Value (EV), aka Selling Price, as Percent of Revenue

Company 6/30/20 6/30/19 6/30/18
Amedisys 340% 247% 186%
LHC Group 279% 206% 266%
HH Index Average* 310% 227% 226%
Addus 214% 173% 149%


Multiples of EV/EBITDA

Think of this as selling price as a multiple of EBITDA.

Company 6/30/20 6/30/19 6/30/18
Amedisys 327.90 24.27 20.81
LHC Group 27.87 21.67 29..56
HH Index Average* 27.89 22.97 25.19
Addus 33.11 23.05 19.60

The Stoneridge Partners Post-Acute Care 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)
  • Addus (ADUS)
  • The Pennant Group, Inc. (PNTG)
  • Encompass Health (EHC)
  • Brookdale Senior Living Inc. (BKD)

This graph displays Post-Acute Care Index performance starting late 2019.

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 for its reporting. (Home Health Index July 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Tennessee-based Alleo Health System has acquired Upper Cumberland Hospice and Palliative Care Services.
  • Summit BHC, a leading provider of addiction treatment and behavioral health services, acquired Highland Hospital, a 131-bed psychiatric facility in Charleston, West Virginia.

Exclusively Listed For Sale By Stoneridge Partners


Do you know of any acquisitions that have taken place? We are interested in your comments. Contact us; Stoneridge Partners

36 item(s) found

Posted 2 weeks ago by Ben B

$9+ million home care agency.  Non-skilled.  99% private pay/LTC Insurance.  65-75% live-ins.  Accredited.  Multiple locations.  Experienced management team.

 Home Care /  New Jersey / 17 views

Posted 4 weeks ago by Ben B

Medicare/Medicare certified Home Health agency.  Accredited.  Minimal Census.

 Home Health /  Virginia / 31 views

Posted 1 month ago by Ted Cohen

$25+ million home health agency.  Medicaid/Medicare certified.  95%+ Medicaid.  Multiple locations.  Experienced management team.

 Home Health /  Massachusetts / 40 views

Posted 2 months ago by Coley M

Very rare opportunity in a CON state.  Located in Davidson County in Nashville, TN.  2020 revenue in excess of $650,000.

 Home Health /  Tennessee / 87 views

Posted 3 months ago by Luci

Substance use disorder treatment center, PHP, IOP, co-occurring disorders.  2019 EBITDA of $400k, 2020 revenue trend nearly $2 million and growing.  Average daily census of...

 Behavioral Health /  Mountain West / 79 views

Posted 3 months ago by Ben B

Non-skilled home care company.  $10+ million in annual revenue.  Predominantly Medicaid.  Highly profitable.  Accredited.  Strong management team in place.

 Home Care /  Northeast / 120 views

Posted 4 months ago by Joe L

$1 million Medicare home health agency in northwest Minnesota.  Well-established.  Diverse referral sources.  Long history of excellent care.

 Home Health /  Minnesota / 93 views

Posted 4 months ago by Ben B

Non-skilled licensed home care organization.  Approximately $2 million in annual revenue.  Strong management team in place.  Southern California.

 Home Care /  California / 134 views

Posted 6 months ago by Brian B

$10 million Medicaid personal care provider.  Large consumer-direct component.  History of steady growth.

 Home Care /  Minnesota / 196 views

Posted 6 months ago by Brian H

$50 million ID/DD platform opportunity.  Multi-state, Midwest.  Tenured management team to stay in place.  Double digit year over year organic growth.  Significant future opportunities for...

 ID/DD /  Midwest / 196 views

Posted 6 months ago by Partners

$4.2 million home health agency in Houston, Texas.  17.5% bottom line.  Large coverage area.  Diverse referral network.  Fully staffed with no clinical issues.

 Home Health /  Texas / 200 views

Posted 7 months ago by Joe L

Clean and accredited hospice provider number in the coveted San Antonio marketplace.  Current license is valid until the end of May 2022.

 Hospice /  Texas / 206 views

Posted 7 months ago by Joe L

Fast growing private pay home care agency in northeast Tennessee.  $1.2+ million in revenue.  Quality focused and very profitable.

 Home Care /  Tennessee / 215 views

Posted 7 months ago by Brian H

$8 million Midwest ID/DD agency.  Highly profitable.  Consistent staff and clients.

 ID/DD /  Midwest / 210 views

Posted 7 months ago by Partners

$2.1 million revenue.  Dallas/Ft. Worth based Medicaid pediatric therapy business.  16% EBITDA margin.  More than 300 patients.  Also services San Antonio and surrounding areas.

 Home Health /  Texas / 200 views

Posted 8 months ago by Partners

$12 million Medicaid home care business.  Experienced management team in place.  Strong financials, long-term consistent growth.  EBITDA over $1 million.

 Home Care /  Pennsylvania / 227 views

Posted 8 months ago by Ted Cohen

$1+ million non-skilled home care agency.  20% AEBITDA.  90% of revenue from Medicaid Waiver program.  Includes Medicare-certified, ACHC accredited home health license.  Management team in...

 Home Care /  Michigan / 239 views

Posted 9 months ago by Jacob L

Three locations in southeastern US.  Real estate is also for sale.  Residential, PHP, IOP and sober living programs; detox is outsourced through BioCore.  More than...

 Behavioral Health /  Southeast / 304 views

Posted 9 months ago by Partners

$4.9 million Medicare home health agency located in Phoenix, Arizona.  Showing strong year over year revenue growth since 2018.  Diverse referral sources, well run with...

 Home Health /  Arizona / 304 views

Posted 10 months ago by Partners

$5 million Midwest-based ABA provider. Day supports and counseling. Highly profitable and respected. CARF accredited. Contracted with state and insurance companies.

 Behavioral Health /  Midwest / 323 views

Posted 10 months ago by Coley M

$1.5 million private duty home health agency in eastern Michigan. Profitable and well-positioned for additional growth. Self-sufficient staff in place. 82 long-term clients.

 Home Health /  Michigan / 317 views

Posted 10 months ago by Partners

Medication-assisted treatment center. Suboxone only. Strategic location between Louisville and Lexington, Kentucky. Great reputation with strong clinical team in place. 110 clients with room to...

 Behavioral Health /  Kentucky / 332 views

Posted 10 months ago by Partners

Ohio ID/DD provider with $1.1 million revenues. A high-quality operation with existing staff to manage the transition to new ownership.

 ID/DD /  Ohio / 308 views

Posted 11 months ago by Jacob L

New software application helping build social connections among patients in recovery and giving them increased access to therapists. Potential investment opportunity. Facilitates total successful recovery...

 Other / 307 views

Posted 11 months ago by Joe L

Home health and hospice covering 10 counties in west Texas/eastern New Mexico with $5 million in revenue. No clinical issues, under CAP. Very profitable. Easily...

 Home Health /  Southwest / 355 views

Posted 11 months ago by Ben B

Hospice with $3.5 million in annual revenue. Accredited. No cap or regulatory issues.

 Hospice /  Texas / 357 views

Posted 11 months ago by Ted Cohen

Home health agency and adult day care center with $12+ million in annual revenue. Home health represents 85% of revenue while adult day represents 15%...

 Home Health /  South Atlantic / 343 views

Posted 11 months ago by Jacob L

Treatment center with 28 beds, intensive outpatient program capacity of 40, full continuum of substance use disorder services and dual diagnosis treatment capability. JCAHO accreditation...

 Behavioral Health /  Texas / 338 views

Posted 11 months ago by Ted Cohen

$5+ million home health, home care, case management, and hospice company. Approximately 15% revenue from hospice, other service line revenues distributed relatively evenly. Multiple locations....

 Hospice /  Oklahoma / 349 views

Posted 11 months ago by Brian H

$1 million ID/DD agency with real estate. Long-term client base, additional growth potential and strong margins.

 ID/DD /  North Carolina / 301 views

Posted 11 months ago by Ben B

$2.5 million New Mexico home health agency. 87% Medicare. Long history in the community and existing staff in place.

 Home Health /  New Mexico / 307 views

Posted 11 months ago by Brian H

$2 million ID/DD agency in the Detroit area. Profitable service provider with existing management team in place.

 Michigan / 306 views

Posted 11 months ago by Ted Cohen

Medicare and Medicaid certified home health agency.  $16.5 million in annual revenue with continued growth. 90%+ Medicaid.   Strong management in place. Accredited.

 Home Health /  Massachusetts / 354 views

Posted 11 months ago by Jacob L

Boutique full-service clinical laboratory specializing in preventative diagnostic testing. Medicare- and Medicaid- certified, with insurance contracts in more than 20 southeastern states.

 South / 309 views

Posted 11 months ago by Brian H

ID/DD service provider with $1 million in revenue. Residential and day services offered, located in Atlanta suburb.

 ID/DD /  Georgia / 319 views

Posted 11 months ago by Ted Cohen

Medicare-certified home health agency. Approximately $3.8 million in revenue with 17% bottom line. Located in Districts 9 and 10. Revenues split evenly between districts. Accredited....

 Home Health /  Florida / 369 views

Home Health Index July 2020 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at rich@stoneridgepartners.com or (239) 561-0826 and toll-free 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. Links to Google Finance: Amedisys | LHC Group