Amedisys, Inc., AMED recently completed the acquisition of RoseRock Healthcare, a prominent hospice care provider in Tulsa, Oklahoma. Financial terms of the deal were kept under wraps.
RoseRock offers specialized hospice care to around 220 patients on a regular basis in the Northeastern Oklahoma. Amedisys is a major independent home health, hospice and personal care company with six home health care centers operating within Oklahoma. This buyout aligns with Amedisys’ strategy to venture into the hospice care market of the state.
About the Acquisition
Per the terms of the agreement, Amedisys has made a substantial buyout of all the assets of RoseRock healthcare. With the deal’s closure, Amedisys will now operate a total of 138 hospice care centers across 34 states. This strategic transaction is expected to pave the way for higher-quality patient care, better support for clinical teams and more awareness regarding the benefits of hospice care.
Per Market Research Future, the global hospice care market is projected to witness a CAGR of 8.1 % during the forecast period of 2018-2023. Considering its abundant market prospects, this acquisition is a strategic fit.
Recent Developments by Amedisys Within the United States
Of late, Amedisys has been consistently expanding its hospice care business.
In February 2019, the company concluded the takeover of New Jersey-based Compassionate Care Hospice, a 53-location national hospice care provider that added 11 states to the acquirer’s hospice network. This acquisition makes Amedisys the third largest hospice organization in the United States.
Last October, the company culminated its purchase of Bring Care Home,a personal care provider in Northeastern Massachusetts.
Around the same time, Amedisys partnered with the Nashville-basedhome health and hospice predictive modeling and analytics company, Medalogix. This partnership’s goal was to drive home health innovation.
Over the past year, Amedisys’ stock has outperformed the industry it belongs to. The stock has soared 95.1% versus the industry’s decline of 10.6%.
Zacks Ranks and Key Picks
Amedisys currently carries a Zacks Rank #2. (Buy) Some other top-ranked stocks in the broader medical space are Stryker Corporation SYK, Penumbra, Inc., PEN and Varian Medical Systems, Inc VAR, each currently carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stryker’s long-term earnings growth rate is projected to be 10%
Penumbra’s long-term earnings growth rate is expected at 20.9%.
Varian’s long-term earnings growth rate is predicted to be 8%.
Today's Best Stocks from Zacks Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Varian Medical Systems, Inc. (VAR) : Free Stock Analysis Report
Penumbra, Inc. (PEN) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
Amedisys, Inc. (AMED) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research