Home Health, Post-Acute Stocks Follow S&P, Begin Autumn with a Fall

After two consecutive months of forward progress, home health and post-acute care stock values took a bit of a tumble in September according to the Stoneridge Partners Home Health (HHI) and Post-Acute Care (PAI) Indices.

The HHI was off just 0.3% in September compared to August – a fraction of the S&P’s drop of more than 3.5% for the same time period. Meanwhile, the PAI surpassed the S&P’s negative performance by more than two points, falling nearly 6% for the month.

“As the pandemic continues, there’s still a lot of uncertainty across both the home health and larger post-acute care landscapes,” said Stoneridge Partners President and CEO Rich Tinsley. “Still, I’m heartened by the fact that the month-to-month volatility we were seeing earlier in the year has slowed. And we’re continuing to see sustained M&A activity at Stoneridge, so that’s definitely a good sign.”

Home Health Index

The Stoneridge HHI, updated monthly, follows the stock values of Amedisys Inc. (Nasdaq: AMED) and LHC Group Inc. (Nasdaq: LHCG).

Both companies saw gains in August, but September told a different story. Baton Rouge, Louisiana-based Amedisys saw its stock value drop by almost 2.3% compared to August, while Lafayette, Louisiana-based LHC Group continued its steady climb, improving by nearly 2% on a month-over-month basis.

“Stockholders in the home health space have to be pleased overall with how these companies have performed during a tough year,” Tinsley said. “Even with the economy taking a wallop over the past six months, they’ve managed to stabilize and continue out-performing their 2019 results, thanks to a continued preference for home-based care during the pandemic.”

Year-to-date, the HHI is up almost 48%, and over the past 12 months it has risen by nearly 83%.

Post-Acute Care Index

The monthly PAI from Stoneridge Partners looks at the broader post-acute care market, combining Amedisys’ and LHC Group’s stock values with values for senior living and rehabilitation companies Addus HomeCare Corporation (Nasdaq: ADUS), The Pennant Group, Inc. (Nasdaq: PNTG), Encompass Health Corp. (NYSE: EHC) and Brookdale Senior Living Inc. (NYSE: BKD).

Eagle, Idaho-based The Pennant Group kicked off the last quarter of 2020 with a strong performance – its stock value rose by more than 6% in September, and in early October the company completed its acquisition of Harmony Hospice, with the expectation of more deals on the horizon.

Frisco, Texas-based Addus also saw slight gains in September, adding just less than 1% to its stock value compared to the previous month. Birmingham, Alabama-based Encompass Health’s stock value dipped by almost 0.4% in September compared to August, while Brentwood, Tennessee-based Brookdale’s stock value dropped almost 7.6% over that same period.

Quote Of The Month

“There has been an increased awareness of the breadth and depth of care at home, and this will have a long-standing impact on policy and politics as well,. There has been an absolute, exponential increase in respect for what you do in the home care setting. We took the stresses of the pandemic head-on and proved that care in the home is not only essential but [the best option].” – William A Dombi, National Association for Home Care & Hospice (NAHC) President

Read the Full Article Here: NAHC Pushing for Palliative Care, SNF-at-Home Medicare Benefits

Articles Featuring Stoneridge

View our quarterly M&A webinars on current valuation trends, deal flow, and pertinent regulatory changes in home health, home care, hospice, ID/DD, and behavioral health industries. Visit the Speaker Series Webinar Library on our website.

Voices: Ben Bogan, Partner, Stoneridge Partners

Stoneridge Partners President & Chief Executive Officer, Rich Tinsley is featured in Home Health Buyers, Sellers Headed Toward Frenzied Finish to M&A in 2020

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 October 2020 | Stoneridge Partners)

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

Company 9/30/20 1 mos change YTD change 9/30/19 9/30/18
Amedisys 236.43 -2.26% +42.26% 131.36 123.61
LHC Group 212.56 +1.98% +54.30% 114.28 101.98
HH Index* 224.50 -0.30% +47.71% 122.82 112.80
S&P 3380.75 -3.54% +4.64% 2983.69 2924.87
Addus 94.51 +0.88% -2.79% 79.19 69.29

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) 9/30/20 9/30/19 9/30/18
Amedisys 7610 4390 3990
LHC Group 6160 3980 3520
HH Index Total 13770 8370 7510
Addus 1330 1070 857


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

Company 9/30/20 9/30/19 9/30/18
Amedisys 386% 242% 252%
LHC Group 299% 195% 260%
HH Index Average* 343% 219% 256%
Addus 181% 188% 188%


Multiples of EV/EBITDA

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

Company 9/30/20 9/30/19 9/30/18
Amedisys 31.44 24.41 26.45
LHC Group 25.44 19.57 34.08
HH Index Average* 28.44 21.99 30.27
Addus 23.98 25.72 23.75

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 October 2020 | Stoneridge Partners)

Recent Transactions From Around The Country

  • A+ Solutions, an Ohio-based educational and psychological provider, was acquired by Refresh Mental Health, Inc., the national clinical leader in providing psychiatric, psychological and therapy services.
  • Bell Family, LLC, an Arizona-based home and community based-services (HCBS) provider, was acquired by The MENTOR Network, Inc., a national health care and human services company.
  • Spectrum Home Healthcare, LLC, an Arizona-based home health care provider, was acquired by The MENTOR Network, Inc., a national health care and human services company.
  • Hospice and home health provider LHC Group (NASDAQ: LHCG) has acquired Santa Rita Hospice in Aurora, Colo.
  • Maryland-based Hospice of the Chesapeake has acquired Hospice of Charles County

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

43 item(s) found

Posted 2 days 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 / 4 views

Posted 3 weeks ago by Coley M

$15 million private duty Medicaid agency.  $3 million EBITDA.  Contracted with Seven state Aging Service Access Points (ASAP)

 Home Health /  Massachusetts / 33 views

Posted 1 month ago by Brian B

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

 Home Care /  Minnesota / 69 views

Posted 1 month 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 / 66 views

Posted 2 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 / 81 views

Posted 2 months ago by Jacob L

Outpatient facility offering mental health and substance use disorder treatment, including co-occurring/dual diagnosis therapy and MAT.  One company with four reputable brands operating in six...

 Behavioral Health /  Midwest / 99 views

Posted 2 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 / 89 views

Posted 3 months 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 / 101 views

Posted 3 months ago by Brian H

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

 ID/DD /  Midwest / 98 views

Posted 3 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 / 101 views

Posted 3 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 / 124 views

Posted 3 months ago by Brian B

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

 Home Health /  Illinois / 122 views

Posted 3 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 / 137 views

Posted 4 months ago by Partners

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

 Home Health /  Texas / 153 views

Posted 5 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 / 179 views

Posted 5 months ago by Partners

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

 Home Health /  Pennsylvania / 168 views

Posted 5 months ago by Partners

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 / 176 views

Posted 5 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 / 193 views

Posted 5 months ago by Partners

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 / 206 views

Posted 5 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 / 206 views

Posted 5 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 / 203 views

Posted 5 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 / 205 views

Posted 5 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 / 211 views

Posted 5 months ago by Partners

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

 Home Care /  Connecticut / 209 views

Posted 6 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 / 214 views

Posted 6 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 / 221 views

Posted 6 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 / 221 views

Posted 6 months ago by Ben B

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

 Hospice /  Texas / 225 views

Posted 6 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 / 223 views

Posted 6 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 / 205 views

Posted 6 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 / 207 views

Posted 6 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 / 217 views

Posted 6 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 / 222 views

Posted 6 months ago by Partners

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 / 202 views

Posted 6 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 / 207 views

Posted 6 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 / 206 views

Posted 6 months ago by Brian H

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

 Michigan / 204 views

Posted 6 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 / 233 views

Posted 7 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 / 216 views

Posted 7 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 / 215 views

Posted 7 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 / 209 views

Posted 7 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 / 235 views

Posted 7 months ago by Partners

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

 Behavioral Health /  California / 220 views

Home Health Index October 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 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. Links to Google Finance: Amedisys | LHC Group