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Amedisys (AMED) Latest New York Assets Buyout Aids Home Health

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Amedisys, Inc. AMED recently closed a deal concerning the acquisition of regulatory assets that permits the company to conduct home health care operations in Westchester County, NY. Per the deal, the company acquired the rights to operate certified home health care services in the said region as well as New York Borough of the Bronx.

However, the financial terms of the deal remained undisclosed.

More About the News

The company will open a start-up care center here to provide access to 375,000 Medicare enrollees and 165,000 Medicare Advantage enrollees.

The latest development is in line with the company’s ongoing efforts to expand footprint in key markets. The company, which has already been recognized as the second largest provider of home health care and the third largest provider of hospice care in the United States, is expected to further strengthen its position with the latest initiative. The company has a presencein 516 locations across 39 states and the District of Columbia.

Key Market Expansion Initiatives

In July, Amedisys acquired the home health and hospice care assets of Visiting Nurse Association (VNA). This acquisition is expected to strengthen Amedisys’ home health and hospice care network across Nebraska and Iowa, the two regions, which are VNA’s base.

In the same month, Amedisys inked a definitive agreement to acquire Contessa Health, a Nashville, TN-based company that offers higher-acuity hospital-at-home and skilled nursing facility (SNF)-at-home services.

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In May 2021, Amedisys closed the deal concerning the acquisition of regulatory assets that permits the company to conduct certified home health care operations in Randolph County, NC, and surrounding areas within a 50-mile radius, including Montgomery County.

Currently, management expects the company to have enough cash balance to make a number of such acquisitions and alliances in the future.

Industry Prospects

The home health industry is poised for tremendous growth in the long term, driven by an aging U.S. population, and patients’ desire for independence and home health as a reasonable care modality. Per a report by Grand View Research, the global home healthcare market size was valued at $281.8 billion in 2019 and is expected to see a CAGR of 7.9% by 2027.

Price Performance

Shares of the company have gained 29.1% in a year’s time against the industry’s 9.4% decline.

Zacks Rank and Key Picks

Currently, Amedisys carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader medical space include Apollo Medical Holdings, Inc. AMEH, AMN Healthcare Services Inc. AMN and ICON PLC ICLR.

Apollo Medical, sporting a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 20%. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare, which carries a Zacks Rank #1, has a long-term earnings growth rate of 6.5%.

ICON, which carries a Zacks Rank #2, has a long-term earnings growth rate of 11.7%.


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Amedisys, Inc. (AMED) : Free Stock Analysis Report

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