July Home Health, Post-Acute Care Stocks Rebound, Showing Highest Gains in Months

There’s good news for both home health and post-acute care stock values according to the latest Home Health (HHI) and Post-Acute Care (PAI) indices from national healthcare mergers and acquisitions firm Stoneridge Partners.

The HHI continued its upward trajectory after last month’s positive results, soaring more than 15% in July. And after taking a tumble last month, the PAI picked up some steam and improved by an impressive 10% over June’s results. The S&P, comparatively, rose about 5.5% from June to July.

“I think this shows that with time, home health and post-acute companies are adjusting as best they can to COVID-19,” said Stoneridge Partners President and CEO Rich Tinsley. “They’ve been able to secure some more PPE and make sure their protocols are operating effectively. I also think there’s a greater need for their services, and patients are less hesitant to access them. That bodes well for these companies.”

Home Health Index

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

In July, Amedisys stock values jumped nearly 18% over June, while LHC Group stock ticked up nearly 12%. These strong performances pushed the HHI up nearly 15% — its biggest one-month improvement since November of 2019.

Even with the financial turmoil that has roiled the U.S. economy since the beginning of the year, the HHI has posted a year-over-year increase of more than 66%.

“All of us in the healthcare industry have known for years that home health is a critical component in the spectrum of care resources,” Tinsley said. “The pandemic seems to have shone an even brighter light on the importance of the work home health providers do.”

Post-Acute Care Index

 Stoneridge also tracks stock values for leading post-acute care companies in its PAI.

Along with Amedisys and LHC Group, the PAI also includes Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group, Inc. (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living (NYSE: BKD).

While the PAI’s July performance didn’t best the HHI, the 10% month-over-month increase is welcome news after last month’s 3% decline.

Stock values for Birmingham, Alabama-based Encompass — which operates a mix of inpatient rehabilitation hospitals, home health and hospice agencies — jumped nearly 10% between June and July. Meanwhile, Eagle, Idaho-based Pennant Group recorded an increase of nearly 11% during the same period. Pennant operates home health, hospice and senior living businesses. Additionally, Frisco, Texas-based Addus, which focuses on Medicaid home-based care, saw its stock prices tick up more than 4% last month.

Brentwood, Tennessee-based Brookdale was the only company in the PAI to trend downward between June and July. The company, focused largely on the senior living community model, saw its stock values fall just over 6%. Still, that’s a marked improvement over last month’s performance when Brookdale’s stock plummeted more than 19%.

“It’s no surprise that post-acute care companies offering home-based care are faring better than those with a less diversified portfolio of services during the pandemic,” Tinsley said. “Congregate living facilities have worked incredibly hard to avoid coronavirus outbreaks in their facilities, but it’s a much more challenging environment and I think the current stock values reflect that.”

Quote Of The Month

“Hospitals have been given permission — for patients that were actively in an outpatient [setting] for that facility — to send them to outpatient therapists by way of telehealth into patients’ homes.” – National Association for Home Care & Hospice (NAHC) President William A. Dombi

Read the Full Article Here: Dombi: Regulatory Flexibilities: Mean More Competition for Home Health Providers

Articles Featuring Stoneridge

Join our quarterly M&A webinar on current valuation trends, deal flow, and pertinent regulatory changes in home health, home care, hospice, ID/DD, and behavioral health industries. Sign up here: Webinar Registration

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 August 2020 | Stoneridge Partners)

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

Company 7/31/20 1 mos change YTD change 7/31/19 7/31/18
Amedisys 234.16 +15.21% +40.89% 135.06 106.62
LHC Group 195.11 +10.66% +41.63% 123.51 91.15
HH Index* 214.64 +13.14% +41.23% 129.29 98.89
S&P 3271.12 +5.22% +1.25% 2980.38 2822.74
Addus 96.41 +3.99% -0.83% 81.05 67.05

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) 7/31/20 7/31/19 7/31/18
Amedisys 7740 4770 3100
LHC Group 6390 4370 3010
HH Index Total 14130 9140 6110
Addus 1350 1020 634


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

Company 7/31/20 7/31/19 7/31/18
Amedisys 393% 263% 201%
LHC Group 306% 216% 272%
HH Index Average* 350% 240% 237%
Addus 226% 186% 149%


Multiples of EV/EBITDA

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

Company 7/31/20 7/31/19 7/31/18
Amedisys 31.99 26.49 22.41
LHC Group 30.58 22.83 30.17
HH Index Average* 31.29 24.66 26.29
Addus 34.98 24.84 19.51

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 August 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Providence Treatment, an outpatient addiction treatment provider with three locations in the Greater Philadelphia area, has acquired Main Line Recovery, an outpatient facility in Haverford, Pennsylvania, offering comprehensive assessment for behavioral health concerns and psychotherapy for individuals, couples, families and groups.
  • The Pennant Group Inc. announced that it has purchased two home health agencies with multiple locations throughout southeastern Idaho and northern Utah.

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

41 item(s) found

SJL-7334

New 

Posted 13 hours ago by Joe L

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

 Home Care /  Tennessee / 2 views

SBH-4038

New 

Posted 13 hours ago by Brian H

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

 ID/DD /  Midwest / 2 views

Posted 2 days ago by Joe L

$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.

 Other /  Texas / 5 views

Posted 3 weeks ago by Coley M

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

 Home Care /  Pennsylvania / 27 views

Posted 3 weeks ago by Brian B

Illinois Medicaid pediatric provider.  $3 million annual revenue.  Long history in the market.  Recent rate increase.

 Home Health /  Illinois / 30 views

Posted 3 weeks 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 / 33 views

Posted 2 months ago by Joe L

$2.3 million revenue home health agency located in Arlington, TX.  Growing and profitable.  Management staff in place.  No compliance issues.

 Home Health /  Texas / 68 views

Posted 2 months ago by Tony S

Rare opportunity to buy one of the largest MAT/OBOT providers in state.  Strong team in place with stellar reputation.  Great payor mix with current census...

 Behavioral Health /  Southeast / 75 views

Posted 2 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 / 84 views

Posted 2 months ago by Ted Cohen

Medicare-certified home health agency.  Licensed to service Chester, Lancaster, and Delaware counties.  ACHC-accredited.  Minimal census of 20+/- patients.

 Home Health /  Pennsylvania / 81 views

Posted 2 months ago by Jacob L

Medication-assisted treatment/office-based addiction treatment center utilizing Suboxone, Vivitrol and Zubsolv; also specializing in pain management, group counseling and hormone replacement therapy.  Three locations in a...

 Behavioral Health /  Southwest / 87 views

Posted 2 months ago by Joe L

$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 / 93 views

Posted 3 months ago by Brian B

Licensed home care services agency with services in five boroughs. Approximately $20 million in revenue and a long-standing history in the community.

 Home Care /  New York / 112 views

Posted 3 months ago by Brian B

Well-established pediatric provider. Revenue more than $40 million. Medicaid and insurance accepted.

 Other /  Multi-State / 117 views

Posted 3 months ago by Brian H

$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 / 112 views

Posted 3 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 / 118 views

Posted 3 months ago by Tony S

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 / 116 views

Posted 3 months ago by Brian H

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 / 122 views

Posted 3 months ago by Brian B

Large Medicaid home care agency. Steady consistent growth. Nice platform opportunity.

 Home Care /  Connecticut / 126 views

Posted 4 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 / 126 views

Posted 4 months ago by Joe L

$3.5 million all-Medicaid home care company located in Houston, TX. 20%+ year-over-year revenue growth since 2016.

 Home Care /  Texas / 127 views

Posted 4 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 / 127 views

Posted 4 months ago by Joe L

$5.3 million Medicaid agency in San Antonio, TX. 16.5% EBITDA. CHAP-accredited. Staff can remain in place for a smooth transition.

 Home Health /  Texas / 126 views

Posted 4 months ago by Ben B

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

 Hospice /  Texas / 137 views

Posted 4 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 / 129 views

Posted 4 months ago by Jacob L

$5+ million 37-bed outpatient treatment center. Fully accredited and recently revamped to increase growth and margin. Great census, UR, acquisition and solid numbers. Out of...

 Behavioral Health /  Arizona / 120 views

Posted 4 months ago by Jacob L

Partial hospitalization treatment program/intensive outpatient program seeking strategic partner. Strong census and revenue growth. No direct competition for niche market.

 Behavioral Health /  Georgia / 120 views

Posted 4 months ago by Jacob L

Full continuum, JCAHO-accredited substance use disorder treatment center on 100+ acre horse ranch. Dual diagnosis treatment capability with 16 beds and 22 staff. $1.5 million...

 Behavioral Health /  Tennessee / 121 views

Posted 4 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 / 123 views

Posted 4 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 / 130 views

Posted 4 months ago by Ben B

Medicare-certified home health agency with $9.6 million in annual revenue. 98% traditional Medicare and other PPS payors. Medicare- and Medicaid-certified with multiple locations.

 Home Health /  Oklahoma / 124 views

Posted 4 months ago by Brian H

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

 North Carolina / 119 views

Posted 4 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 / 118 views

Posted 4 months ago by Ben B

Medicare-certified home health agency in Las Vegas area. Approximately $1 million in annual revenue. Accredited

 Home Health /  Nevada / 130 views

Posted 4 months ago by Brian H

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

 Michigan / 122 views

Posted 4 months ago by Ted Cohen

Medicare- and Medicaid-certified home health agency. $13+ million in annual revenue with continued growth. Diverse payor mix. Strong management in place. Accredited.

 Home Health /  Massachusetts / 137 views

Posted 4 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 / 121 views

Posted 4 months ago by Ben B

$5.5 million accredited Medicare agency located in northeastern Illinois. Strong bottom line. 4.5-star rating by CMS.

 Home Health /  Illinois / 122 views

Posted 4 months ago by Brian H

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

 Georgia / 123 views

Posted 4 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 / 136 views

Posted 4 months ago by Joe L

$11 million multi-location addiction treatment center. Located in Southern California. 21% bottom line. Strong growth trends. JCAHO-accredited.

 Behavioral Health /  California / 133 views

Home Health Index August 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