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Amedisys' (AMED) VNA Assets Buyout Boosts Home Health-Hospice

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Amedisys AMED recently 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.

Financial terms of the deal were kept under wraps.

Strategic Significance of the Deal

VNA,a non-profit organisation with an experience of 125 years, currently has a team of more than 400 healthcare professionals. The integration of VNA’s home health and hospice care assets will enable Amedisys to deliver advanced services in Omaha, NE and Council Bluffs, IA.

Leveraging on VNA’s home health and hospice care legacy, Amedisys expects to provide additional scale and resources. This is expected to broaden Amedisys’ patient base as well as increase the company’s opportunities to expand home health services to more communities across Nebraska and Iowa.

During the time of the unprecedented healthcare crisis, we believe this latest investment by Amedisys in the growing space of home health and hospice might prove to be strategic and well timed. This is going to expand Amedisys’ presence in Omaha and Council Bluffs’ healthcare communities.

Amedisys' Important Strategic Pacts in Recent Times

Amedisys is developing and acquiring new business lines that will complement its existing home care and hospice business and help seniors manage their health more effectively and stay in their homes longer.

In July2021, 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.

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.

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In April 2021, the company signed a definitive agreement to acquire regulatory assets that allow the company to conduct home health care operations in Randolph County, NC. In January, Amedisys collaborated with an alternate site infusion services provider to offer COVID-19 antibody infusion therapy within skilled nursing and assisted living facilities, collectively referred to as “long term care facilities.”

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 the 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 31.5% in a year’s time against the industry’s 5.6% dip.

Zacks Rank and Key Picks

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

A few better-ranked stocks from the broader medical space are Envista Holdings Corporation NVST, BellRing Brands, Inc. BRBR and Baxter International Inc. BAX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.

Envista Holdings has an estimated long-term earnings growth rate of 26%.

BellRing Brands has an estimated long-term earnings growth rate of 22%.

Baxter International has a projected long-term earnings growth rate of 9%.

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

Baxter International Inc. (BAX) : Free Stock Analysis Report

Envista Holdings Corporation (NVST) : Free Stock Analysis Report

BellRing Brands, Inc. (BRBR) : Free Stock Analysis Report

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