Home Health Index | 2016 DECEMBER UPDATE

Home Health Index Increases 2.93%, Rallies in November

Stoneridge Partners | Home Health Index November 2016 increases 2.93%: During a month marked by a historic U.S. presidential election, the three largest publicly-traded home health care companies saw their market values rally in November. The Home Health Index tracked by Stoneridge Partners—which follows the market value of Almost Family (Nasdaq: AFAM), Amedisys Inc. (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG)—outpaced the S&P 500 by more than double, increasing 2.93% in November. By comparison, the S&P 500 ticked up by just 1.15%.

All three of the major home health care companies tracked by the index saw major gains during the month. The movement is welcome news for the industry, as the index has contracted somewhat in the past few months. By comparison, the index rose just 0.79% in October, after a decline of 12.63% in September. Despite this reversal, the home health index is down 2.26% year to date.

“Home health stocks were rewarded in November in light of the results of the presidential election,” said Rich Tinsley, president of Stoneridge Partners. “With an incoming Donald Trump Administration, the potential for home health regulations to scale back in 2017 may have markets rallying at the end of the year, with home health joining the rising tide.”

LHC Group saw the biggest gains during the month, with its stock price climbing 19.34% to $42.88. However, year-to-date, the stock is down 5.32%. The Lafayette, Louisiana-based home health care provider announced during November it was entering into a major joint venture with hospital company Lifepoint Health (Nasdaq: LPNT) to operate Lifepoint’s 20 home health and 10 hospice locations.

Amedisys Inc.’s stock rose 16.27% in November from the previous month, reaching $41.44. Year-to-date, the stock is up 5.39%. Amedisys, based in Baton Rouge, Louisiana, reported dismal earnings for the third quarter of 2016, and the results have dragged on the company’s stock as of late.

By contrast, Almost Family reported record-setting earnings in its most recent quarterly report. The stock rose 12.75% in November from October, and is up 8.03% year to date. The company has seen organic growth across its home health care business, and earnings beat analysts’ expectations.

Addus Homecare, which is not tracked in the home health index because little of its income comes from Medicare, saw huge gains during the month, with its stock spiking 39.53%. Year-to-date, Addus’ stock is up 49.05%. The company had a tremendously successful third quarter, after a year of ups and downs.

Quote Of  The Month 

“We’re limiting hours and shifts, and caregivers are actually making less,” said Phil Bongiorno, executive director of the Home Care Association of America, which represents 2,500 home-care providers

Read the Full Article Here: Overtime Pay Rules Will Affect Millions of Healthcare Workers

See It to Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these three publicly traded home health companies, all listed on the NASDAQ:

  • Almost Family (AFAM)
  • LHC Group (LHCG)
  • Amedisys (AMED)

Please note the graphs representing (1) HH Index to the percentage change in the S&P 500 Index for over 14 years, (2) 12 month trailing chart of the HH Index, and (3) HH Index to the price of Addus stock (non-Medicare) can be found in the most recent issue of the Home Health Index.


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

Company 11/30/16 1 mos change YTD change 11/30/15 11/30/14
Almost Family 41.30 +12.75% +8.03% 42.37 27.61
Amedisys 41.44 +16.27% +5.39% 40.59 25.42
LHC Group 42.88 +19.34% -5.32% 46.55 23.51
HH Index* 41.87 +2.93% -2.26% 43.17 25.51
S&P 500 2204.97 +1.15% +7.88% 2080.41 2067.56
Addus 34.70 +39.53% +49.05% 22.80 23.08

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) 11/30/2016 11/30/2015 11/30/2014
Almost Family 548 493 309
Amedisys 1410 1410 957
LHC Group 841 868 482
HH Index Total 2799 2771 1748
Addus 313 239 240

 

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

Company 11/30/2016 11/30/2015 11/30/2014
Almost Family 89% 91% 69%
Amedisys 101% 111% 66%
LHC Group 95% 109% 69%
HH Index Average* 95% 104% 68%
Addus 87% 83% 70%

Multiples of EV/EBITDA.

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

Company 11/30/2016 11/30/2015 11/30/2014
Almost Family 11.81 12.6 16.6
Amedisys 17.77 15.0 NA
LHC Group 10.21 11.5 8.6
HH Index Average* 13.26 13.0 NA
Addus 12.94 12.4 11.0

*Included Gentiva prior to its acquisition in February 2015 by Kindred.

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ.   EV has been calculated based on stock prices September 1. 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 that may differ from that used by a company its reporting.

Recent Transactions From Around the Country:

  • Care Finders Total Care, a home healthcare company based in New Jersey, announced the acquisition of Secura Home Health, LLC (formerly a division of Loving Care Agency), a portfolio company of MTS Health Investors, LLC.
  • Metro East Small Business Development Center (SBDC) helps partners, Jeff Stassi and Steve Boyd in acquiring, operating and expanding the non-medical home care business, Central Illinois Care Services, to provide home care services across Central and Southern Illinois.
  • The Ensign Group, Inc. announced that its home health and hospice portfolio subsidiary, Cornerstone Healthcare, completed the acquisition of certain assets of River City Hospice.

Exclusively Listed for Sale by Stoneridge Partners:

  • Colorado – $2.5 million diversified home care agency  and hospice,  accredited with excellent books and records. Stoneridge File SJL-1005
  • Florida –Located in the huge east coast Florida District 9, this is a $6 million Medicare agency with approx. 98% of revenue coming from traditional Medicare. Very well run with excellent financial records and solid bottom line. Stoneridge File SDC-7429
  • Florida – $4 million in pure private pay.  15% bottom line.  Accredited on the central east coast.  Stoneridge File SBA-3250
  • Florida – Located in the Orlando area this is a $4 million diversified home health agency.  Payor sources include Medicare, Medicaid and private pay, 35% of which is traditional Medicare.  Top management will assure smooth transition.   Well run with excellent financial records and solid bottom line. Stoneridge File SDC-3739
  • Florida – Home care company in affluent area on west coast of Florida. $2.7 million run rate. Non-Medicare with 86% pure private pay. Consistent moderate growth. Caregivers are W-2 employees. Stoneridge File SBA-1253
  • Florida – $2.5 million Medicare agency in Port St. Lucie. Great reputation and clinicals. Stoneridge File SBB-6191
  • Florida – $2.4 million Medicare certified home health agency in District 3. Outstanding clinical with highest star rating. Longtime Home Care Elite top agency. Excellent growth opportunities. Stoneridge File SBA-4836
  • Florida – $1.4 million growing private duty business in District 7. Well-run clinically and poised for growth FY 2017. Stoneridge File SCM-5220
  • Florida – $1.4 million accredited Medicare home health agency in District 8. Stoneridge File SBA-5224 
  • Illinois – $5.5 million accredited Medicare agency located in northeastern Illinois. Strong bottom line. 4 1/2 star rating by CMS. Stoneridge File SBA-2734
  • Illinois – $3.4 million Medicare deficiency free home health agency in Northern Illinois.  This agency has built its success by concentrating on a very profitable and loyal market niche, and has an outstanding reputation with both their patients and community. Stoneridge File SCM-3291
  • Illinois – $1.5 million Medicare certified home health agency. Clean survey and deficiency free. Quality clinical operation with staff in place. Stoneridge File SBA-7425
  • Illinois – Opportunity to establish a Medicare certified home health agency. Pristine license in state under moratorium. Medicare certification. Accredited. Stoneridge File SBA-5000
  • Michigan – $1.8 million Medicare agency located in high-end resort community. Stoneridge File SBB-5471
  • Missouri – $2.8 million Medicaid agency in greater St. Louis area. Nice bottom line. Excellent add-on acquisition opportunity. Stoneridge File SBB-9001
  • Ohio –  $4+ million Medicare/Medicaid agency located in NE Ohio. Stoneridge File SBA-8002
  • Oklahoma – Medicare certified hospice for sale in Central Oklahoma. $2.1 million run rate. Accredited. Multiple locations. Stoneridge File SBA-3881
  • Pennsylvania – $2.8 million Medicare certified home health agency with small hospice operations in Eastern Pennsylvania. 72% traditional Medicare for home health. Great tuck-in opportunity for strategic buyer. Requires corporate support functions. Stoneridge File SBA-4227
  • Southwest – $30 million hospice company with accompanying home health located in the southwest United States. Stoneridge File SJL-9650
  • Texas – $7 million Houston-based Medicare home health agency. Accredited, expertly run and growing. Stoneridge File SJL-1500
  • Texas – $4.1 million Dallas based home care company. Well managed and showing strong growth trends for 2016. Stoneridge File SJL-6002
  • Texas – $3.5 million home health agency in Houston (metro). Diversified agency – 70% Medicare, 30% private pay. Inherent capacity for growth.  Stoneridge File SJL-2000
  • Texas – $3.2 million hospice in McAllen, Texas. CHAP accredited with a solid reputation. Stoneridge File SJL-1112
  • Texas – Profitable $3 million Medicare & Medicaid home care company in East Texas. Well-run with an excellent reputation, full staff in place and a 4.5 star rating. Stoneridge File SJL-9472
  • Texas –  Growing $3 million west Texas Medicare certified home health agency. Accredited with a wide variety of referral sources. Stoneridge File SJL-2892
  • Texas – $2.8 million private pay home care agency in a major metropolitan market. Pure private pay, no Medicaid, no Medicare. Approximately 10$ EBITDA. Stoneridge File SDC-8557
  • Texas – $2.6 million established home health agency in Dallas with both Medicare and Medicaid lines of business. Stoneridge File SJL-8335
  • Texas – $2 million Medicare accredited home health care company located in East Texas. Strong financials, clinically clean with nice opportunity for growth. Stoneridge File SCM-9753
  • Texas – $1.3 million profitable Medicare and Medicaid agency located in a growing market just north of Dallas. Clean clinically with excellent financials. Stoneridge File SJL-1492
  • Texas – $1.2 million established and profitable home health agency with two offices and service area from Conroe to Galveston. Stoneridge File SJL-6249 
  • Texas – Established and profitable $1.2 million private pay agency located in the Dallas/Fort Worth metroplex. Clean surveys with all appropriate staff in place. Stoneridge File SJL-1373
  • Texas – $1.1 million solid and clean Medicare home health agency located in the Fort Worth area. Stoneridge File SJL-7530 
  • Texas – $1 million agency in Tyler, Texas. Excellent opportunity to break into the attractive market. Stoneridge File SJL-8967
  • Wisconsin – $1.2 million Medicare certified home health agency. Licensed in Wisconsin. Clean survey and deficiency free. Staff in place. Motivated seller. Stoneridge File SBA-5776
  • Florida – $5 million Medicare agency located in the Tampa – St. Pete area.  Accredited, with solid bottom line.   Stoneridge File SBA-4109. ON CONTRACT
  • Florida – Lee County Medicare agency. Approximately $400,000 in revenue. Accredited. 4 1/2 star rating. Oasis quality assessment 97.7%. Florida district 8. Stoneridge File SBA-4186. ON CONTRACT
  • Mid-Atlantic – $30 million Medicare/Medicaid agency with multiple branches in several states, including CON service areas. Long history and great reputation for quality care. Stoneridge File SBB-8300 ON CONTRACT
  • New Jersey – Opportunity to enter much sought after New Jersey market via a small hospice in the southern part of the state. Stoneridge File SJL-9002a ON CONTRACT
  • Pacific Northwest – $2+ million all private pay agency located in the pacific northwest. Established and profitable with employees, software systems and marketing in place. Stoneridge File SJL-3008ON CONTRACT
  • Pennsylvania – $14 million Medicaid provider with history of steady growth and terrific referral pipeline. Current management will stay if desired. Stoneridge File SBB-6722 ON CONTRACT
  • Pennsylvania – $4+ million hospice located in Western Pennsylvania. Stoneridge File SBA-5001 ON CONTRACT
  • Texas – $4.9 million well established Medicare provider in the Dallas/Ft. Worth metroplex. Deficiency free and showing positive growth. Stoneridge File SJL-4918 ON CONTRACT
  • Texas – $1.5 million all private pay agency located in Fort Worth, Texas. Excellent reputation, excellent reviews and extremely profitable. Stoneridge File SJL-5115 ON CONTRACT

To see more home care agencies and hospices exclusively listed for sale by Stoneridge Partners click here.

Do you know of any acquisitions that have taken place?  We would be interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously. The return email address can be left blank.  We are interested in what you have to say, or acquisitions that you know about.

Another Cartoon Favorite From the New Yorker


 

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From Rich Tinsley, Publisher of “The Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 and toll-free 800-218-3944

Previous of this monthly newsletter can be searched for at the bottom of the home page of the Home Health Index. Links to Google Finance: Almost Family | Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

Stoneridge Partners | Home Health Index November 2016 increases 2.93%

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Home Health Index | 2016 NOVEMBER UPDATE

Home Health Index Pick Ups in October 

After two months of relative decline, the average market value of three of the largest publicly-traded home health care companies rose slightly in October. Bucking the most recent downward trend, the Home Health Index tracked by Stoneridge Partners rose 0.79% in October. By comparison, the index, which tracks the market values of Almost Family (Nasdaq: AFAM), Amedisys Inc. (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG), contracted 12.63% in September.

The index outpaced the S&P 500 during the month, which rose just 0.54%. However, the index is still lags its year-to-date value by 0.64%, while the S&P 500 has risen 6.66% year to date. Prior to its recent decline, the index was consistently hitting new all-time highs from May through August. Valuations are still strong.

“The index has plateaued the last couple of months, yet valuations remain strong and we expect those strong gains for sellers to continue into 2017,” said Rich Tinsley, president of Stoneridge Partners.

While the index ticked up overall, not all three companies tracked saw gains in October. During the month, Almost Family’s stock dipped slightly, dropping 0.38% from September. Year to date, the stock is down 4.19%. Despite this, the Louisville, Kentucky-based company has been highly acquisitive throughout the year.

Amedisys was the only company of the three to see its stock price rise during the month, jumping 4.32%. Amedisys’ stock price has risen 25.86% year-to-date, outpacing the S&P 500 and its industry peers. Amedisys is the second largest home health care provider and has recently overcome the impacts of natural disasters in its headquarters of Baton Rouge, Louisiana.

At the same time, Lafayette, Louisiana-based LHC Group’s stock price declined 0.95% in October. The provider has experienced the biggest hits among the three indexed companies, with its stock price down 20.67% year to date. LHC Group has also been very acquisitive throughout the year, though the company downgraded its targeted pipeline earlier this year in light of the impacts of the Pre-claim Review Demonstration from the Centers for Medicare & Medicaid Services (CMS).

Addus Homecare, another major home health care provider which is not tracked in the index because little of its revenue comes from Medicare, saw its share prices drop 4.93% from September. By comparison, Addus had been outperforming Almost Family, Amedisys and LHC Group as of late, with a huge jump of 38.71% in September.

Quote Of  The Month 

“The election provides home care with a combination of challenges and opportunities, ” states William Dombi, Vice President for Law at the National Association for Home Care & Hosice (NAHC).

Read the Full Article Here: Home Health Industry Ponders Meaning of Trump Victory

See It to Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these three publicly traded home health companies, all listed on the NASDAQ:

  • Almost Family (AFAM)
  • LHC Group (LHCG)
  • Amedisys (AMED)

Please note the graphs representing (1) HH Index to the percentage change in the S&P 500 Index for over 14 years, (2) 12 month trailing chart of the HH Index, and (3) HH Index to the price of Addus stock (non-Medicare) can be found in the most recent issue of the Home Health Index.


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

Company 10/31/16 1 mos change YTD change 10/31/15 10/31/14
Almost Family 36.63 -0.38% -4.19% 41.50 29.44
Amedisys 49.49 +4.32% +25.86% 39.58 26.10
LHC Group 35.93 -2.58% -20.67% 45.06 24.35
HH Index* 40.68 +0.79% -0.64% 42.05 26.63
S&P 500 2179.98 +0.54% +6.66% 2079.36 2018.05
Addus 24.87 -4.93% +6.83% 24.98 19.87

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) 10/31/2016 10/31/2015 10/31/2014
Almost Family 515 499 328
Amedisys 1730 1288 992
LHC Group 734 866 479
HH Index Total 2979 2653 1799
Addus 313 227 207

 

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

Company 10/31/2016 10/31/2015 10/31/2014
Almost Family 92% 91% 69%
Amedisys 113% 111% 66%
LHC Group 86% 109% 69%
HH Index Average* 97% 104% 68%
Addus 87% 83% 70%

Multiples of EV/EBITDA.

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

Company 10/31/2016 10/31/2015 10/31/2014
Almost Family 12.93 12.6 16.6
Amedisys 18.45 15.0 NA
LHC Group 9.14 11.5 8.6
HH Index Average* 1351.2 13.0 NA
Addus 12.94 12.4 11.0

*Included Gentiva prior to its acquisition in February 2015 by Kindred.

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ.   EV has been calculated based on stock prices September 1. 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 that may differ from that used by a company its reporting.

SOLD BY STONERIDGE!

  • Blessed Trinity Home Health Care, Inc. in Bonner Springs, Kansas was acquired by Carter Healthcare. Partner, Ben Bogan, provided sell side advisory services.
  • Home Care Partners in Monroe Township, NJ sold to CareFinders Total Care. Partner, Ben Bogan, provided sell side advisory services.
  • Lighthouse Healthcare, Inc. in Springfield, VA was acquired by Encompass Home Health. Partner, Brian Bruenderman, provided sell side advisory services. 

Recent Transactions From Around the Country:

  • Amedisys, Inc. closed on the acquisition of Visiting Nurse Association of Long Island, a nonprofit organization based in Garden City, New York.
  • Addus HomeCare Corporation, a provider of home and community-based serices, acquired South Shore Home Health Services, Inc., a New York state-licensed home care agency primarily providing personal care services.
  • Epic Health Services completed two acquisitions, the first being Pediatria Healthcare for Kids, a pediatric home healthcare company based out of Georgia that offers skilled nursing and therapy services. Epic also doubled their market share in Pennsylvania with the acquisition of  Firstaff Nursing Services which provides adult home health care and nursing services.
  • Senior Helpers, a provider of in-home senior care, was purchased by Altaris Capital Partners, LLC, a leading healthcare investment firm.
  • Leading Health Care of Louisiana acquired Absolute Care Providers a healthcare company based in Baton Rouge.

Exclusively Listed for Sale by Stoneridge Partners:

  • Colorado – $2.5 million diversified home care agency  and hospice,  accredited with excellent books and records. Stoneridge File SJL-1005
  • Florida – $4 million in pure private pay.  15% bottom line.  Accredited on the central east coast.  Stoneridge File SBA-3250
  • Florida – Located in the Orlando area this is a $4 million diversified home health agency.  Payor sources include Medicare, Medicaid and private pay, 35% of which is traditional Medicare.  Top management will assure smooth transition.   Well run with excellent financial records and solid bottom line. Stoneridge File SDC-3739
  • Florida – Home care company in affluent area on west coast of Florida. $2.7 million run rate. Non-Medicare with 86% pure private pay. Consistent moderate growth. Caregivers are W-2 employees. Stoneridge File SBA-1253
  • Florida – $2.5 million Medicare agency in Port St. Lucie. Great repuation and clinicals. Stoneridge File SBB-6191
  • Florida – $2.4 million Medicare certified home health agency in District 3. Outstanding clinical with highest star rating. Longtime Home Care Elite top agency. Excellent growth opportunities. Stoneridge File SBA-4836
  • Florida – $1.4 million growing private duty business in District 7. Well-run clinically and poised for growth FY 2017. Stoneridge File SCM-5220
  • Florida – $1.4 million accredited Medicare home health agency in District 8. Stoneridge File SBA-5224 
  • Illinois – $5.5 million accredited Medicare agency located in northeastern Illinois. Strong bottom line. 4 1/2 star rating by CMS. Stoneridge File SBA-2734
  • Illinois – $3.4 million Medicare deficiency free home health agency in Northern Illinois.  This agency has built its success by concentrating on a very profitable and loyal market niche, and has an outstanding reputation with both their patients and community. Stoneridge File SCM-3291
  • Illinois – $1.5 million Medicare certified home health agency. Clean survey and deficiency free. Quality clinical operation with staff in place. Stoneridge File SBA-7425
  • Illinois – Opportunity to establish a Medicare certified home health agency. Pristine license in state under moratorium. Medicare certification. Accredited. Stoneridge File SBA-5000
  • Michigan – $1.8 million Medicare agency located in high-end resort community. Stoneridge File SBB-5471
  • Minnesota – $14 million revenue Medicare/Medicaid home health agency. Well established and deficiency free. Stoneridge File SJL-5268
  • Missouri – $2.8 million Medicaid agency in greater St. Louis area. Nice bottom line. Excellent add-on acquisition opportunity. Stoneridge File SBB-9001
  • Ohio –  $4+ million Medicare/Medicaid agency located in NE Ohio. Stoneridge File SBA-8002
  • Oklahoma – Medicare certified hospice for sale in Central Oklahoma. $2.1 million run rate. Accredited. Multiple locations. Stoneridge File SBA-3881
  • Pennsylvania – $2.8 million Medicare certified home health agency with small hospice operations in Eastern Pennsylvania. 72% traditional Medicare for home health. Great tuck-in opportunity for strategic buyer. Requires corporate support functions. Stoneridge File SBA-4227
  • Texas – $4.1 million Dallas based home care company. Well managed and showing strong growth trends for 2016. Stoneridge File SJL-6002
  • Texas – $3.5 million home health agency in Houston (metro). Diversified agency – 70% Medicare, 30% private pay. Inherent capacity for growth.  Stoneridge File SJL-2000
  • Texas – $3.2 million hospice in McAllen, Texas. CHAP accredited with a solid reputation. Stoneridge File SJL-1112
  • Texas – Profitable $3 million Medicare & Medicaid home care company in East Texas. Well-run with an excellent reputation, full staff in place and a 4.5 star rating. Stoneridge File SJL-9472
  • Texas –  Growing $3 million west Texas Medicare certified home health agency. Accredited with a wide variety of referral sources. Stoneridge File SJL-2892
  • Texas – $2.6 million established home health agency in Dallas with both Medicare and Medicaid lines of business. Stoneridge File SJL-8335
  • Texas – $2 million Medicare accredited home health care company located in East Texas. Strong financials, clinically clean with nice opportunity for growth. Stoneridge File SCM-9753
  • Texas – $1.3 million profitable Medicare and Medicaid agency located in a growing market just north of Dallas. Clean clinically with excellent financials. Stoneridge File SJL-1492
  • Texas – Established and profitable $1.2 million private pay agency located in the Dallas/Fort Worth metroplex. Clean surveys with all appropriate staff in place. Stoneridge File SJL-1373
  • Texas – $1 million agency in Tyler, Texas. Excellent opportunity to break into the attractive market. Stoneridge File SJL-8967
  • Wisconsin – $1.2 million Medicare certified home health agency. Licensed in Wisconsin. Clean survey and deficiency free. Staff in place. Motivated seller. Stoneridge File SBA-5776
  • Florida – Located in the huge east coast Florida District 9, this is a $6 million Medicare agency with approx. 98% of revenue coming from traditional Medicare.  Very well run with excellent financial records and solid bottom line. Stoneridge File SDC-7429 ON CONTRACT
  • Florida – $5 million Medicare agency located in the Tampa – St. Pete area.  Accredited, with solid bottom line.   Stoneridge File SBA-4109. ON CONTRACT
  • Florida  – Lee County Medicare agency. Approximately $400,000 in revenue. Accredited. 4 1/2 star rating. Oasis quality assessment 97.7%. Florida district 8. Stoneridge File SBA-4186. ON CONTRACT
  • Massachusetts – $5 + million home health agency, primarily Medicaid, but also private pay and commercial insurance, plus Medicare certification. Zero deficiencies on last survey.  Stoneridge File SBA-9300. ON CONTRACT
  • Mid-Atlantic – $30 million Medicare/Medicaid agency with multiple branches in several states, including CON service areas. Long history and great reputation for quality care. Stoneridge File SBB-8300 ON CONTRACT
  • New Jersey – Opportunity to enter much sought after New Jersey market via a small hospice in the southern part of the state. Stoneridge File SJL-9002a ON CONTRACT
  • Pennsylvania – $14 million Medicaid provider with history of steady growth and terrific referral pipeline. Current management will stay if desired. Stoneridge File SBB-6722 ON CONTRACT
  • Pennsylvania – $4+ million hospice located in Western Pennsylvania. Stoneridge File SBA-5001 ON CONTRACT
  • Pennsylvania – Approximately $2 million in revenue. Licensed for entire state of Pennsylvania, so ready for growth. Stoneridge File SJL-9991 ON CONTRACT
  • Texas – $7 million Houston-based Medicare home health agency. Accredited, expertly run and growing. Stoneridge File SJL-1500 ON CONTRACT
  • Texas – $4.9 million well established Medicare provider in the Dallas/Ft. Worth metroplex. Deficiency free and showing positive growth. Stoneridge File SJL-4918 ON CONTRACT
  • Texas – $1.5 million all private pay agency located in Fort Worth, Texas. Excellent reputation, excellent reviews and extremely profitable. Stoneridge File SJL-5115 ON CONTRACT
  • Texas – $1.2 million established and profitable home health agency with two offices and service area from Conroe to Galveston. Stoneridge File SJL-6249 ON CONTRACT
  • Texas – $1.1 million solid and clean Medicare home health agency located in the Fort Worth area. Stoneridge File SJL-7530 ON CONTRACT

To see more home care agencies and hospices exclusively listed for sale by Stoneridge Partners click here.

Do you know of any acquisitions that have taken place?  We would be interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously. The return email address can be left blank.  We are interested in what you have to say, or acquisitions that you know about.

Another Cartoon Favorite From the New Yorker


 

16_11_11-cartoon

 

 

 

 

 

 

 

 

 

 

 

Stoneridge Partners is exhibiting at Decision Health’s 19th Annual Private Duty Conference in Las Vegas today through Wednesday.

Stop by Booth 202 to meet the team sample those famous Kentucky bourbon balls. We also be available for confidential meetings throughout the conference. To schedule a private meeting, please call (800) 218-3944.

 

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From Rich Tinsley, Publisher of “The Home Health Index”. Rich can be reached at [email protected], (502) 822-4510 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: Almost Family | Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

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Biomotive Packaging Triggers

Biomotive Packaging Triggers

Believe it or not the saying that good things come in small packages is very true.

There is a lot of technology and innovation that goes into the packaging. The bottom line is contract packaging is big business. In North America alone, the contract packaging market is expected to exceed $20 billion over the next couple years. (more…)

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Stoneridge Partners | 2016 Decision Health Private Duty Conference

Stoneridge Partners | 2016 Decision Health Private Duty Conference

Booth 202 Decision Health Private Duty Conference and Expo 2016

Stoneridge Partners | 2016 Decision Health Private Duty Conference: Firm members will be available to discuss the market, valuations, buying and selling. They will also be available for confidential meetings throughout the conference. You can email them directly or call us at (800) 218-3944 to schedule.  Attendees include:

Don’t forget we’ll have those famous Kentucky bourbon balls.


About Decision Health

We offer more than 50 independent newsletters, books and websites that help readers make the best business decisions on issues affecting the business operations of:

  • Physician offices, including solo, group, specialty and faculty practices
  • Hospitals, including inpatient, outpatient, quality assurance, facility management, MIS and compliance departments
  • Home health agencies and hospices
  • Durable medical equipment suppliers
  • Clinical laboratories in physician offices, hospitals and independent settings
  • Ambulatory surgery centers

Our information services cover challenges as wide ranging as Medicare coding and reimbursement, Joint Commission accreditation, benchmarks and payment and compliance with health care fraud and abuse and HIPAA laws.

In addition to our publications, DecisionHealth sponsors many professional seminars, conferences and expos.

At DecisionHealth, the only person we work for is you, the provider. We are not affiliated with any special interest groups, nor owned by any entity with a conflicting stake in the healthcare industry. Since 1986, we’ve been independently watching out for the financial health of healthcare providers, and we’ll be there for you and your peers for the next 25 years.

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Stoneridge Partners | 2016 NAHC Annual Conference – Call (800) 218-3944 to schedule a private meeting

Stoneridge Partners | 2016 NAHC Annual Conference

Stoneridge Partners | 2016 NAHC Annual Conference: Mergers & Acquisitions: Buying, Selling & Valuing panel discussion features leading M&A experts who will review market conditions and other issues key to closing transactions. Presenters will also go into the preparation for a merger or acquisition, including valuation issues, negotiation, initial offers and due diligence.

The format is open to encourage Q&A. To submit a topic or question for the panel, email [email protected] . Visit NAHC Annual Meeting for details about the conference.

Panelists include:

  • Darby Anderson, EVP & Chief Development Officer, Addus HomeCare
  • Cliff Blessing, SVP of Development, Encompass Home Health & Hospice
  • Peter Sosnow, Director of Integration, SeniorBridge Humana at Home
  • Brian Bruenderman, Partner, Stoneridge Partners
  • Don Cummins, Founder & Partner, Stoneridge Partners
  • Richard Tinsley, President & CEO, Stoneridge Partners

Visit us at Booth 1233

Stop by to meet our team and sample those famous Kentucky bourbon balls. We’ll also be available for confidential meetings throughout the conference. Call us at (800) 218-3944 to schedule a private meeting with a member of our firm.


Stoneridge Partners

Since 2001, M&A advisory firm Stoneridge Partners has been exclusively focused on home care, hospice and behavioral health agencies. If you would like a member of Stoneridge Partners to speak with you confidentially, to participate on your association’s panel or to speak at a conference, contact Tina Mackin at (800) 21803944 or [email protected].


About NAHC

The National Association for Home Care and Hospice (NAHC) was founded with the intention of encouraging the development and the delivery of the highest quality of medical, social, and supportive services to the aged, infirm, and disabled.

In the process of bringing these essential services to the needy, the Association and its members seek to establish and retain the highest possible level of public confidence.

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Home Health Index | 2016 OCTOBER UPDATE

Home Health Index Lags Again in September 

For the second consecutive month, the Home Health Index tracked by Stoneridge Partners declined, as the average market value of three of the largest public home health care companies pulled back. During September, market values sank for the three companies tracked in the index: Almost Family (Nasdaq: AFAM), Amedisys Inc. (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG). The index declined 12.63% during September, compared to a contraction of just 1.13% in August.

The index is now slightly below its year-to-date value by 1.42%. By comparison, the S&P 500 index pulled back just 0.12% in September. The Home Health Index decline comes after the four months of record all-time highs from May through August.

While publicly traded home health companies did not see gains in September, companies in the private market still experienced record valuations. Furthermore, valuations of the largest public home health companies are still up compared to the previous 24 months.

“Valuations are still at all-time highs for private companies, even given the public companies’ pullback this month,” said Rich Tinsley, president of Stoneridge Partners. “Over the last 24 months, valuations are still up 72%.”

During September, LHC Group saw its shares dip 18.52% from the previous month, pushing the stock down 18.57% year to date. The Lafayette, Louisiana-based company toned down its acquisition pipeline during September as a result of the Pre-Claim Review Demonstration from the Centers for Medicare & Medicaid (CMS), which is currently ongoing in Illinois.

Amedisys also saw a sharp drop in its share price in September; down 11.41% from the previous month. However, the stock is up 20.65% year to date and the company has experienced significant growth over the last 12 months, buoyed by high star ratings from the Centers for Medicare & Medicaid Services (CMS).

Almost Family’s stock price dipped 7.59% in September, bringing its year-to-date change to a 3.82% decline. The downturn is in contrast to a strong year overall for the Louisville, Kentucky-based company.

Not tracked in the index is Addus Homecare, which saw its share price soar in September, rising 38.71%. The company is not included in the index because very little of its revenue comes from Medicare.

Quote Of  The Month 

Lawmakers in Illinois are urging Centers for Medicare & Medicaid Services (CMS) to halt the Pre-Claim Review Demonstration (PCRD). In a letter to Andy Slavitt, acting administrator at CMS, Rep. Tammy Duckworth, U.S. Sens. Dick Durbin and Mark Kirk and the entire Illinois Delegation write:

“Seven weeks into the PCRD, the experience of this pilot in Illinois has resulted in severe burdens on patient access to care and provider capacity,” the letter reads. “Illinois’ experience under the PCRD has been alarmingly burdensome for home health providers, which is harming patient access to care.”

Read the Full Article Here: Lawmakers Urge CMS to Halt Pre-Claim in Illinois

See It to Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these three publicly traded home health companies, all listed on the NASDAQ:

  • Almost Family (AFAM)
  • LHC Group (LHCG)
  • Amedisys (AMED)

Please note the graphs representing (1) HH Index to the percentage change in the S&P 500 Index for over 14 years, (2) 12 month trailing chart of the HH Index, and (3) HH Index to the price of Addus stock (non-Medicare) can be found in the most recent issue of the Home Health Index.


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

Company 10/31/16 1 mos change YTD change 10/31/15 10/31/14
Almost Family 36.63 -0.38% -4.19% 41.5 29.44
Amedisys 49.49 4.32% +25.86% 39.58 26.10
LHC Group 35.93 -2.58% -20.67% 45.06 24.35
HH Index* 40.68 0.32% -.64% 40.93 26.63
S&P 500 2179.98 .54% +6.66% 2079.36 2018.05
Addus 24.87 -4.93% -6.83% 24.98 19.87

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) 11/1/2016 10/1/2015 10/1/2014
Almost Family 540 462 302
Amedisys 1730 1345 779
LHC Group 735 827 465
HH Index Total 3005 2634 1546
Addus 313 303 207

 

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

Company 11/1/2016 10/1/2015 10/1/2014
Almost Family 92% 91% 69%
Amedisys 113% 111% 66%
LHC Group 86% 109% 69%
HH Index Average* 97% 104% 68%
Addus 97% 83% 70%

Multiples of EV/EBITDA.

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

Company 11/1/2016 10/1/2015 10/1/2014
Almost Family 12.93 12.6 16.6
Amedisys 18.45 15.0 NA
LHC Group 9.14 11.5 8.6
HH Index Average* 13.51 13.0 NA
Addus 12.94 12.4 11.0

*Included Gentiva prior to its acquisition in February 2015 by Kindred.

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ.   EV has been calculated based on stock prices September 1. 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 that may differ from that used by a company its reporting.

SOLD BY STONERIDGE!

  • Lighthouse Healthcare, Inc. in Springfield, VA was acquired by Encompass Home Health. Partner, Brian Bruenderman, provided sell side advisory services. 

Recent Transactions From Around the Country:

  • Cornerstone Healthcare, Inc., The Ensign Group’s home health and hospice subsidiary, acquired the assets of Kinder Hearts Home Health and Hospice in Abilene, Texas.
  • Right at Home, the Nebraska-based home health care provider has been acquired by the North Carolina-based private equity company, Investors Management Corporation.
  • Senior Helpers Boston, an in-home senior care provider, announced its expansion into the Greater Boston area by acquiring Senior Helpers South Shore.
  • PSA Healthcare, a leading provider of pediatric home care for children with medical complexities, acquired Professional Pediatric Home Care, a leading provider of home care services to medically fragile children and their families.

Exclusively Listed for Sale by Stoneridge Partners:

  • Colorado – $2.5 million diversified home care agency  and hospice,  accredited with excellent books and records.  Stoneridge File SJL-1005
  • Florida – Located in the huge east coast Florida District 9, this is a $6 million Medicare agency with approx. 98% of revenue coming from traditional Medicare.  Very well run with excellent financial records and solid bottom line. Stoneridge File SDC-7429
  • Florida $4 million in pure private pay.  15% bottom line.  Accredited on the central east coast.  Stoneridge File SBA-3250. 
  • Florida – Located in the Orlando area this is a $4 million diversified home health agency.  Payor sources include Medicare, Medicaid and private pay, 35% of which is traditional Medicare.  Top management will assure smooth transition.   Well run with excellent financial records and solid bottom line. Stoneridge File SDC-3739
  • Florida – Home care company in affluent area on west coast of Florida. $2.7 million run rate. Non-Medicare with 86% pure private pay. Consistent moderate growth. Caregivers are W-2 employees. Stoneridge File SBA-1253
  • Florida – $2.4 million Medicare certified home health agency in District 3. Outstanding clinical with highest star rating. Longtime Home Care Elite top agency. Excellent growth opportunities. Stoneridge File SBA-4836
  • Florida – $1.4 million accredited Medicare home health agency in District 8. Stoneridge File SBA-5224 
  • Illinois – $5.5 million accredited Medicare agency located in northeastern Illinois. Strong bottom line. 4 1/2 star rating by CMS. Stoneridge File SBA-2734
  • Illinois – $3.4 million Medicare deficiency free home health agency in Northern Illinois.  This agency has built its success by concentrating on a very profitable and loyal market niche, and has an outstanding reputation with both their patients and community. Stoneridge File SCM-3291
  • Illinois – $1.5 million Medicare certified home health agency. Clean survey and deficiency free. Quality clinical operation with staff in place. Stoneridge File SBA-7425
  • Illinois – Opportunity to establish a Medicare certified home health agency. Pristine license in state under moratorium. Medicare certification. Accredited. Stoneridge File SBA-5000
  • Minnesota – $14 million revenue Medicare/Medicaid home health agency. Well established and deficiency free. Stoneridge File SJL-5268
  • Ohio –  $4+ million Medicare/Medicaid agency located in NE Ohio. Stoneridge File SBA-8002
  • Oklahoma – Medicare certified hospice for sale in Central Oklahoma. $2.1 million run rate. Accredited. Multiple locations. Stoneridge File SBA-3881
  • Pennsylvania – $2.8 million Medicare certified home health agency with small hospice operations in Eastern Pennsylvania. 72% traditional Medicare for home health. Great tuck-in opportunity for strategic buyer. Requires corporate support functions. Stoneridge File SBA-4227
  • Texas – $4.1 million Dallas based home care company. Well managed and showing strong growth trends for 2016. Stoneridge File SJL-6002 
  • Texas – $3.5 million home health agency in Houston (metro). Diversified agency – 70% Medicare, 30% private pay. Inherent capacity for growth.  Stoneridge File SJL-2000
  • Texas – $3.2 million hospice in McAllen, Texas. CHAP accredited with a solid reputation. Stoneridge File SJL-1112
  • Texas – Profitable $3 million Medicare & Medicaid home care company in East Texas. Well-run with an excellent reputation, full staff in place and a 4.5 star rating. Stoneridge File SJL-9472
  • Texas –  Growing $3 million west Texas Medicare certified home health agency. Accredited with a wide variety of referral sources. Stoneridge File SJL-2892
  • Texas – $2 million Medicare accredited home health care company located in East Texas. Strong financials, clinically clean with nice opportunity for growth. Stoneridge File SCM-9753
  • Texas – $2.6 million established home health agency in Dallas with both Medicare and Medicaid lines of business. Stoneridge File SJL-8335
  • Texas – $1.3 million profitable Medicare and Medicaid agency located in a growing market just north of Dallas. Clean clinically with excellent financials. Stoneridge File SJL-1492
  • Texas – $1 million agency in Tyler, Texas. Excellent opportunity to break into the attractive market. Stoneridge File SJL-8967
  • Virginia – $5 million Medicare certified home health agency. Great clinicals and reputation in the market for providing quality services. Stoneridge File SBB-8675
  • Wisconsin – $1.2 million Medicare certified home health agency. Licensed in Wisconsin. Clean survey and deficiency free. Staff in place. Motivated seller. Stoneridge File SBA-5776
  • Florida – $5 million Medicare agency located in the Tampa – St. Pete area.  Accredited, with solid bottom line.   Stoneridge File SBA-4109. ON CONTRACT
  • Florida  – Lee County Medicare agency. Approximately $400,000 in revenue. Accredited. 4 1/2 star rating. Oasis quality assessment 97.7%. Florida district 8. Stoneridge File SBA-4186. ON CONTRACT
  • Florida – Accredited home health agency with approximately $850,000 in traditional Medicare revenue. Solid bottom line. 4.5 stars. Florida district 9.  Stoneridge File SBA-5177 ON CONTRACT
  • Massachusetts – $5 + million home health agency, primarily Medicaid, but also private pay and commercial insurance, plus Medicare certification. Zero deficiencies on last survey.  Stoneridge File SBA-9300. ON CONTRACT
  • Mid-Atlantic – $30 million Medicare/Medicaid agency with multiple branches in several states, including CON service areas. Long history and great reputation for quality care. Stoneridge File SBB-8300 ON CONTRACT
  • New Jersey – Opportunity to enter much sought after New Jersey market via a small hospice in the southern part of the state. Stoneridge File SJL-9002a ON CONTRACT
  • Pennsylvania – $14 million Medicaid provider with history of steady growth and terrific referral pipeline. Current management will stay if desired. Stoneridge File SBB-6722 ON CONTRACT
  • Pennsylvania – $4+ million hospice located in Western Pennsylvania. Stoneridge File SBA-5001 ON CONTRACT
  • Pennsylvania – Approximately $2 million in revenue. Licensed for entire state of Pennsylvania, so ready for growth. Stoneridge File SJL-9991 ON CONTRACT
  • Texas – $7 million Houston-based Medicare home health agency. Accredited, expertly run and growing. Stoneridge File SJL-1500 ON CONTRACT
  • Texas – $4.9 million well established Medicare provider in the Dallas/Ft. Worth metroplex. Deficiency free and showing positive growth. Stoneridge File SJL-4918 ON CONTRACT
  • Texas – $1.5 million all private pay agency located in Fort Worth, Texas. Excellent reputation, excellent reviews and extremely profitable. Stoneridge File SJL-5115 ON CONTRACT
  • Texas – $1.2 million established and profitable home health agency with two offices and service area from Conroe to Galveston. Stoneridge File SJL-6249 ON CONTRACT
  • Texas – $1.1 million solid and clean Medicare home health agency located in the Fort Worth area. Stoneridge File SJL-7530 ON CONTRACT

To see more home care agencies and hospices exclusively listed for sale by Stoneridge Partners click here.

Do you know of any acquisitions that have taken place?  We would be interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously. The return email address can be left blank.  We are interested in what you have to say, or acquisitions that you know about.

Another Cartoon Favorite From the New Yorker


 

Home Health Index

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Health Index lHome Health Index nahc

Stoneridge Partners will be hosting a panel discussion on “Mergers & Acquisitions: Buying, Selling & Valuing” featuring leading M&A experts who will review market conditions and other issues key to closing transactions. Presenters will also go into the preparation for a merger or acquisition, including valuation issues, negotiation, initial offers and due diligence.

Panelists include:

  • Darby Anderson, EVP & Chief Development Officer, Addus HomeCare
  • Cliff Blessing, SVP of Development, Encompass Home Health & Hospice
  • Peter Sosnow, Director of Integration, SeniorBridge Humana at Home
  • Brian Bruenderman, Partner, Stoneridge Partners
  • Don Cummins, Founder & Partner, Stoneridge Partners
  • Richard Tinsley, President & CEO, Stoneridge Partners

The format is open to encourage Q&A. To submit a topic or question for the panel, email [email protected].

Stop by to meet our team and sample those famous Kentucky bourbon balls. We’ll also be available for confidential meetings throughout the conference.

Call us at (800) 218-3944 to schedule a private meeting with a member of our firm. We look forward to seeing you there.

 

More

From Rich Tinsley, Publisher of “The Home Health Index”. Rich can be reached at [email protected], (502) 822-4510 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: Almost Family | Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

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Home Health Index | 2016 SEPTEMBER UPDATE

Home Health Index Reverses Course with First Decline in Four Months

For the first time in four months, the average market value of the top three largest public home health care companies has declined. During the month of August, The Stoneridge Partners Home Health Index dropped 1.13% from the previous month, reversing a months-long upward trend. The index was outpaced by the S&P 500, which contracted 0.12% during the month.

The index tracks the average market values of Almost Family (Nasdaq: AFAM), Amedisys Inc. (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG). The index had consistently achieved new all-time highs for four consecutive months from May through August.

The share prices of Almost Family, Amedisys and LHC Group have generally risen over the last year, and, year to date, the index is up 12.83%. For the trailing 12-month period, the index is up 9.79%.

“After recent all-time highs, the home health index slumped slightly at the end of August, but valuations remain strong,” said Rich Tinsley, president and CEO of Stoneridge Partners. “The publicly traded home health companies have been highly acquisitive throughout 2016 and are keeping an eye on new regulations coming down the pike.”

Home health care companies are preparing for the Pre-Claim Review Demonstration by the Centers for Medicare & Medicaid Services (CMS), which rolled out in Illinois at the beginning of August and is expected to roll out in four more states over the coming months. While it’s still unclear how the pilot program will fare in the long term, initial reports from Illinois reveal challenges, including a low confirmation rate from Medicare’ contractors in the state and reports of missing documentation.

The reports prompted two U.S. Senators from Florida to write to CMS officials urging them to delay implementation of the demonstration in Florida.

CEO of LHC Group Keith Myers recently stated that pre-claim could put a temporary damper on acquisitions, and the company has already downgraded its ambitious acquisition pipeline, which originally reached for $1 billion in acquisitive revenue.

Roughly half of the company’s planned acquisitions were within the five states where the pre-claim demonstration will become effective—Illinois, Florida, Massachusetts, Michigan and Texas. The Lafayette, Louisiana-based company saw a slight decrease in its August share price of 0.29%. Year to date, LHC Group’s stock is up 0.07%.

Almost Family, which reported record revenues at the end of the third quarter, is more supportive of the pre-claim demonstration, though executives recently stated they are unclear of the long-term impacts. The Louisville, Kentucky-based care provider has exposure in three of the five pre-claim states, including Illinois. Despite a bullish attitude, Almost Family’s stock declined 1.27% for the month of August. Year to date, its stock is up 4.08%.

Baton Rouge, Louisiana-based Amedisys was also confident about new payment models and regulations in recent presentations, though the company’s share price decreased 1.73% in August. Year to date, the stock is up 36.19%

Only Addus Homecare, which is not included in the index because very little of its revenue comes from Medicare, bucked the downward trend. For the month of August, its share price increased 2.22%.

Quotes Of  The Month 

“The thing about in-home care is it’s a big deal. It keeps people living independently and out of other forms of more expensive care. For the full article, click here: Meals on Wheels Acquires In-Home Health Care Nonprofit

See It to Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these three publicly traded home health companies, all listed on the NASDAQ:

  • Almost Family (AFAM)
  • LHC Group (LHCG)
  • Amedisys (AMED)

This graph compares the percentage change of the HH Index to the percentage change in the S&P 500 Index for over 14 years, going back to 2002. It has been quite a ride.


Please note the graphs representing (1) HH Index to the percentage change in the S&P 500 Index for over 14 years, (2) 12 month trailing chart of the HH Index, and (3) HH Index to the price of Addus stock (non-Medicare) can be found in the most recent issue of the Home Health Index.


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

Company 8/31/16 1 mos change YTD change 8/31/15 8/31/14
Almost Family 39.79 -1.27% +4.08% 44.30 27.98
Amedisys 53.35 -1.73% +36.19% 38.64 20.92
LHC Group 45.26 -0.29% -0.07% 43.30 25.74
HH Index* 46.20 -1.13% +12.83% 42.08 24.88
S&P 500 2170.95 -0.12% +6.21% 1972.18 2003.37
Addus 18.86 +2.22% -18.99% 28.74 21.9

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) 9/1/2016 8/1/2015 8/1/2014
Almost Family 540 416 443
Amedisys 1890 1420 1670
LHC Group 911 742 670
HH Index Total 3341 2578 2783
Addus 232 311 180

 

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

Company 9/1/2016 8/1/2015 8/1/2014
Almost Family 97% 83% 65%
Amedisys 144% 119% 51%
LHC Group 110% 100% 69%
HH Index Average* 117% 101% 62%
Addus 67% 96% 83%

Multiples of EV/EBITDA.

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

Company 9/1/2016 8/1/2015 8/1/2014
Almost Family 12.63 12.77 16.96
Amedisys 23.64 16.02 19.72
LHC Group 11.08 11.26 8.60
HH Index Average* 15.78 13.35 15.1
Addus 9.68 13.28 10.50

*Included Gentiva prior to its acquisition in February 2015 by Kindred.

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ.   EV has been calculated based on stock prices September 1. 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 that may differ from that used by a company its reporting.

Recent Transactions From Around the Country:

  • Dallas’ Epic Health Services, Inc. boosts their presence in Nevada by acquiring Las Vegas-based Spring View Home Health Care, which offers private duty nursing services for children and adults as well as therapy and skilled nursing services for adults. The company also expanded its services into Michigan by purchasing Detroit-based Pediatric Special Care, the only child-focused home nursing medical equipment company in Michigan.
  • Meals on Wheels Central Texas acquired the in-home health care nonprofit, Helping the Aging, Needy and Disabled, better known as HAND. The group provides personal care attendants to low-income older adults and people with disabilities. The assistance allows their clients, most of whom are elderly, to continue living independently in their homes, which is why Meals on Wheels saw the acquisition as a perfect fit for its agency.

Exclusively Listed for Sale by Stoneridge Partners:

  • Colorado – $2.5 million diversified home care agency  and hospice,  accredited with excellent books and records.  Stoneridge File SJL-1005
  • Florida – Located in the huge east coast Florida District 5, this is a $6 million Medicare agency with approx. 98% of revenue coming from traditional Medicare.  Very well run with excellent financial records and solid bottom line. Stoneridge File SDC-7429
  • Florida – Located in the Orlando area this is a $4 million diversified home health agency.  Payor sources include Medicare, Medicaid and private pay, 35% of which is traditional Medicare.  Top management will assure smooth transition.   Well run with excellent financial records and solid bottom line. Stoneridge File SDC-3739
  • Florida – Accredited $4 million Medicare certified home health agency in District 5. More than 90% traditional Medicare. Highly motivated seller. Stoneridge File SBA-6226
  • Florida – Home care company in affluent area on west coast of Florida. $2.7 million run rate. Non-Medicare with 86% pure private pay. Consistent moderate growth. Caregivers are W-2 employees. Stoneridge File SBA-1253
  • Florida – $2.4 million Medicare certified home health agency in District 3. Outstanding clinical with highest star rating. Longtime Home Care Elite top agency. Excellent growth opportunities. Stoneridge File SBA-4836
  • Florida – $1.4 million accredited Medicare home health agency in District 8. Stoneridge File SBA-5224 
  • Florida – Accredited home health agency with approximately $850,000 in traditional Medicare revenue. Solid bottom line. 4.5 stars. Florida district 9.  Stoneridge File SDC-5177
  • Illinois – $5.5 million accredited Medicare agency located in northeastern Illinois. Strong bottom line. 4 1/2 star rating by CMS. Stoneridge File SDC-2734
  • Illinois – $3.4 million Medicare deficiency free home health agency in Northern Illinois.  This agency has built its success by concentrating on a very profitable and loyal market niche, and has an outstanding reputation with both their patients and community. Stoneridge File SCM-3291
  • Illinois – Opportunity to establish a Medicare certified home health agency. Pristine license in state under moratorium. Medicare certification. Accredited. Stoneridge File SBA-5000
  • Minnesota – $14 million revenue Medicare/Medicaid home health agency. Well established and deficiency free. Stoneridge File SJL-5268
  • New Jersey – Opportunity to enter much sought after New Jersey market via a small hospice in the southern part of the state. Stoneridge File SJL-9002a
  • Ohio –  $4+ million Medicare/Medicaid agency located in NE Ohio. Stoneridge File SBA-8002
  • Oklahoma – Medicare certified hospice for sale in Central Oklahoma. $2.1 million run rate. Accredited. Multiple locations. Stoneridge File SBA-3881
  • Pennsylvania – $14 million Medicaid provider with history of steady growth and terrific referral pipeline. Current management will stay if desired. Stoneridge File SBB-6722
  • Pennsylvania – $2.8 million Medicare certified home health agency with small hospice operations in Eastern Pennsylvania. 72% traditional Medicare for home health. Great tuck-in opportunity for strategic buyer. Requires corporate support functions. Stoneridge File SBA-4227
  • Texas – $5 million home health agency in Houston (metro). Diversified agency – 70% Medicare, 30% private pay. Inherent capacity for growth.  Stoneridge File SJL-2000
  • Texas – $3.2 million hospice in McAllen, Texas. CHAP accredited with a solid reputation. Stoneridge File SJL-1112
  • Texas –  Growing $3 million west Texas Medicare certified home health agency. Accredited with a wide variety of referral sources. Stoneridge File SJL-2892
  • Texas – $2.6 million established home health agency in Dallas with both Medicare and Medicaid lines of business. Stoneridge File SJL-8335
  • Texas – $1.2 million established and profitable home health agency with two offices and service area from Conroe to Galveston. Stoneridge File SJL-6249
  • Texas – $1.1 million solid and clean Medicare home health agency located in the Fort Worth area. Stoneridge File SJL-7530
  • Texas – $1 million agency in Tyler, Texas. Excellent opportunity to break into the attractive market. Stoneridge File SJL-8967
  • Virginia – $5 million Medicare certified home health agency. Great clinicals and reputation in the market for providing quality services. Stoneridge File SBB-8675
  • Central Midwest – $5 million Medicare certified home health agency with small hospice operations. Strong bottom line and continued growth opportunities. Management team in place and outstanding clinical. Stoneridge File SBA-9010 ON CONTRACT
  • Florida – $4 million in pure private pay.  15% bottom line.  Accredited on the central east coast.  Stoneridge File SBA-3250. ON CONTRACT
  • Florida – $5 million Medicare agency located in the Tampa – St. Pete area.  Accredited, with solid bottom line.   Stoneridge File SBA-4109. ON CONTRACT
  • Florida  – Lee County Medicare agency. Approximately $400,000 in revenue. Accredited. 4 1/2 star rating. Oasis quality assessment 97.7%. Florida district 8. Stoneridge File SBA-4186. ON CONTRACT
  • Massachusetts – $5 + million home health agency, primarily Medicaid, but also private pay and commercial insurance, plus Medicare certification. Zero deficiencies on last survey.  Stoneridge File SBA-9300. ON CONTRACT
  • Mid-Atlantic – $30 million Medicare/Medicaid agency with multiple branches in several states, including CON service areas. Long history and great reputation for quality care. Stoneridge File SBB-8300 ON CONTRACT
  • Pennsylvania – $4+ million hospice located in Western Pennsylvania. Stoneridge File SBA-5001 ON CONTRACT
  • Pennsylvania – Approximately $2 million in revenue. Licensed for entire state of Pennsylvania, so ready for growth. Stoneridge File SJL-9991 ON CONTRACT
  • Pennsylvania – $1.8 million Medicare agency located in eastern Pennsylvania. 82% traditional Medicare. Growing agency with strong potential for future growth. Stoneridge File SBA-2745 ON CONTRACT
  • Texas – $7 million Houston-based Medicare home health agency with sister staffing company. Accredited, expertly run and growing. Stoneridge File SJL-1500 ON CONTRACT
  • Texas – $4.9 million well established Medicare provider in the Dallas/Ft. Worth metroplex. Deficiency free and showing positive growth. Stoneridge File SJL-4918 ON CONTRACT
  • Texas – $4.1 million Dallas based home care company. Well managed and showing strong growth trends for 2016. Stoneridge File SJL-6002 ON CONTRACT
  • Texas – $1.5 million all private pay agency located in Fort Worth, Texas. Excellent reputation, excellent reviews and extremely profitable. Stoneridge File SJL-5115 ON CONTRACT

To see more home care agencies and hospices exclusively listed for sale by Stoneridge Partners click here.

Do you know of any acquisitions that have taken place?  We would be interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously. The return email address can be left blank.  We are interested in what you have to say, or acquisitions that you know about.

Another Cartoon Favorite From the New Yorker


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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From Rich Tinsley, Publisher of “The Home Health Index”. Rich can be reached at [email protected], (502) 822-4510 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: Almost Family | Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

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Home Health & Hospice Buying, Selling & Valuing Webinar | August 18 at 1:00 p.m. (EST)

Stoneridge Partners | Webinar: Home Health & Hospice Buying, Selling

Stoneridge Partners | Webinar: Home Health & Hospice Buying, Selling: Get up to speed on the current market during the Home Health and Hospice: Buying, Selling and Valuing webinar and Q&A session. Partner Ben Bogan will be a keynote speaker during this informative offering presented by Irwin Levin Associates.

Merger and acquisition activity has picked up significantly in this sector, after a relatively quiet 2015. This fragmented industry continues to attract private equity and strategic buyers who are building larger networks among local companies and agencies. Some notable platforms have changed hands this year, and several more announcements are expected. Join our interactive webinar to find out what is in store for this market in the second half of 2016.

In this session you will learn:

  • Who’s buying what, and where
  • Who is selling in this seller’s market
  • Whether valuations can go higher still
  • How the changes in labor laws and reimbursement rules have impacted prices and valuations, particularly minimum wage and overtime laws

Click here to register and for more information. This educational offering is pending approval for 1.50 credit hours by the National Association of Long Term Care Administrator Boards (NAB). Upon webinar approval and enrollee’s successful completion of the test, Irving Levin Associates, Inc. will issue a NAB certificate of completion for students to issue to their state licensure boards.

Head Shot

About Partner Ben Bogan: Prior to joining Stoneridge Partners, Ben was an attorney for a general law practice in Tucson, Arizona, where he was also selected as the Outstanding Pro Bono Attorney for his participation in Southern Arizona’s VLP program. He also served as Assistant District Attorney for the Allegheny County District Attorney’s Office in Pittsburgh, and Assistant District Counsel for the United States Army Corps of Engineers in New York, where he focused on Real Estate and Government Contracts. Ben has a BSBA in Economics from the University of Florida, and a Law Degree from Albany Law School.

Ben works from our Tucson, Arizona, office. You can reach him at [email protected], (239) 215-6777 or (800) 218-3944.

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Home Health Index| 2016 AUGUST UPDATE

The Stoneridge Partners Home Health Index Hits New High For FOURTH Month Running

For the fourth month running, the Stoneridge Partners Home Health Index has reached a new, all-time high for the month of July, rising 2.8% and surpassing the previous high in June. The index tracks the monthly average market values of three of the largest publicly traded home health companies, Almost Family (Nasdaq: AFAM), Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG).

The companies have seen their share prices rise generally throughout the first half of 2016, bouncing back from an early drop at the start of the year. Year to date, the index is up 14.12%, and 9.81% for the trailing 12-month period.

“Buoyed by strong M&A activity, the home health index is continuing to hit all-time market value highs,” said Rich Tinsley, president and CEO of Stoneridge Partners, which publishes the index. “Home health companies are taking new regulations in stride as measures continue to roll out from national payers.”

While the overall impact remains to be seen, initial reports are positive on CMS’ Pre-Claim Review Demonstration, which rolled out August 3 in Illinois and requires home health agencies to submit claims earlier in the care process for reimbursement. The demonstration will continue to roll out in Florida, Michigan, Texas, and Massachusetts in the coming months.

The upcoming demonstration did not seem to weigh on all home health companies, and AFAM was even looking at the potential upside for the industry despite initial administrative burdens.

“We feel CMS’ recently announced pre-claim review process, which may initially be somewhat burdensome, if properly implemented should serve to reduce real and perceived payment error rates and help build a relationship of trust between the program and providers that is critical to home health achieving its real potential in the health care delivery system,” said Almost Family President Steve Guenther in a second quarter earnings release.

Despite a bullish attitude and overall increase across the index, AFAM’s share price declined 5.42% in July. Year to date, the company’s stock is up 5.41%.

AMED had the biggest gains of the month and saw its share prices rise 7.94%. Year to date, AMED’s stock is up 38.85%. LHCG also saw gains, with its share price increasing 4.88% in July, though the stock is up just 0.22% year to date.

Though the index continued to climb in July, it did not outpace the S&P 500 during the month, which grew 3.56%, compared to just 0.9% in June.

Addus Homecare, which is not included in the index because very little of its revenue comes from Medicare, also saw gains during the month. Its share price rose 5.85% in July.

Quotes Of  The Month 

“Now, people are starting to see the value in home care. The silver tsunami is coming. People are going to need help in their homes,” said Tanika Aden, a 15-year home care worker from Washington state who spoke at the Democratic National Convention in Philadelphia. For the full article, click here: Home Care Takes Center Stage at Democratic National Convention

See It to Believe It!

The Stoneridge Partners Home Health Index (HH Index) is updated monthly and measures the performance of these three publicly traded home health companies, all listed on the NASDAQ:

  • Almost Family (AFAM)
  • LHC Group (LHCG)
  • Amedisys (AMED)

Please note the graphs representing (1) HH Index to the percentage change in the S&P 500 Index for over 14 years, (2) 12 month trailing chart of the HH Index, and (3) HH Index to the price of Addus stock (non-Medicare) can be found in the most recent issue of the Home Health Index.


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

Company 7/31/16 1 mos change YTD change 7/31/15 7/31/14
Almost Family 40.30 -5.42% +5.41% 43.76 23.44
Amedisys 54.49 +7.94% +38.58% 43.63 20.19
LHC Group 45.39 +4.88% +0.22% 40.27 23.48
HH Index* 46.73 +2.79% +14.12% 42.55 20.37
S&P 500 2173.60 +3.56% +6.34% 2103.84 1930.67
Addus 18.45 +-5.85% -20.75% 27.14 22.25

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) 7/1/2016 7/1/2015 7/1/2014
Almost Family 540 416 443
Amedisys 1890 1420 1670
LHC Group 911 742 670
HH Index Total 3341 2578 2783
Addus 232 311 180

 

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

Company 7/1/2016 7/1/2015 7/1/2014
Almost Family 97% 83% 65%
Amedisys 144% 119% 51%
LHC Group 110% 100% 69%
HH Index Average* 117% 101% 62%
Addus 67% 96% 83%

Multiples of EV/EBITDA.

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

Company 7/1/2016 7/1/2015 7/1/2014
Almost Family 12.63 12.77 16.96
Amedisys 23.64 16.02 19.72
LHC Group 11.08 11.26 8.60
HH Index Average* 15.78 13.35 15.1
Addus 9.68 13.28 10.50

*Included Gentiva prior to its acquisition in February 2015 by Kindred.

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ.   EV has been calculated based on stock prices September 1. 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 that may differ from that used by a company its reporting.

Stoneridge Partners’ Recent Transactions: 

Arkansas: Kindred Healthcare, Inc. acquired the in-home healthcare operations for the Arkansas Department of Health for $39 million. Stoneridge Partners’ Associate Buyside Partner, Rhonda Gronberg, provided advisory services.

Other Recent Transactions From Around the Country:

  • Geneva Glen Capital recapitalized Southeastern Home Health Services, one of the largest independent Medicare home health providers in Pennsylvania.No financial terms were disclosed for the transaction.
  • Ensign’s home health and hospice portfolio subsidiary, Cornerstone Healthcare, acquired the assets of Hospice for Wright County. The hospice will be owned and operated by Heartland Healthcare  under the name Gateway Hospice.

Exclusively Listed for Sale by Stoneridge Partners:

  • Central Midwest – $5 million Medicare certified home health agency with small hospice operations. Strong bottom line and continued growth opportunities. Management team in place and outstanding clinical. Stoneridge File SBA-9010
  • Colorado – $2.5 million diversified home care agency  and hospice,  accredited with excellent books and records.  Stoneridge File SJL-1005
  • Florida – Accredited $4 million Medicare certified home health agency in District 5. More than 90% traditional Medicare. Highly motivated seller. Stoneridge File SBA-6226
  • Florida – Home care company in affluent area on west coast of Florida. $2.7 million run rate. Non-Medicare with 86% pure private pay. Consistent moderate growth. Caregivers are W-2 employees. Stoneridge File SDC-1253
  • Florida – $2.4 million Medicare certified home health agency in District 3. Outstanding clinical with highest star rating. Longtime Home Care Elite top agency. Excellent growth opportunities. Stoneridge File SBA-4836
  • Florida – $1.4 million accredited Medicare home health agency in District 8. Stoneridge File SBA-5224 
  • Florida – Accredited home health agency with approximately $850,000 in traditional Medicare revenue. Solid bottom line. 4.5 stars. Florida district 9.  Stoneridge File SDC-5177
  • Florida  – Lee County Medicare agency. Approximately $400,000 in revenue. Accredited. 4 1/2 star rating. Oasis quality assessment 97.7%. Florida district 8. Stoneridge File SBA-4186
  • Illinois – $5.5 million accredited Medicare agency located in northeastern Illinois. Strong bottom line. 4 1/2 star rating by CMS. Stoneridge File SDC-2734
  • Minnesota – $14 million revenue Medicare/Medicaid home health agency. Well established and deficiency free.  SJL-5268
  • New Jersey – Opportunity to enter much sought after New Jersey market via a small hospice in the southern part of the state. Stoneridge File SJL-9002a
  • Northwest – $3 million private pay home care.  Growing company with a strong bottom line. Last four surveys deficiency free. Stoneridge File SJL-3003
  • Ohio –  $4+ million Medicare/Medicaid agency located in NE Ohio. Stoneridge File SBA-8002
  • Oklahoma – Medicare certified hospice for sale in Central Oklahoma. $2.1 million run rate. Accredited. Multiple locations. Stoneridge File SBA-3881
  • Pennsylvania – $14 million Medicaid provider with history of steady growth and terrific referral pipeline. Current management will stay if desired. Stoneridge File SBB-6722
  • Pennsylvania – $4+ million hospice located in Western Pennsylvania. Stoneridge File SBA-5001
  • Pennsylvania – $2.8 million Medicare certified home health agency with small hospice operations in Eastern Pennsylvania. 72% traditional Medicare for home health. Great tuck-in opportunity for strategic buyer. Requires corporate support functions. Stoneridge File SBA-4227
  • Texas – $5 million home health agency in Houston (metro). Diversified agency – 70% Medicare, 30% private pay. Inherent capacity for growth.  Stoneridge File SJL-2000
  • Texas –  Growing $3 million west Texas Medicare certified home health agency. Accredited with a wide variety of referral sources. Stoneridge File SJL-2892
  • Texas – $1.9 million Medicare certified home health agency providing service to Region 2. More than 88% of revenue is from traditional Medicare. Stoneridge File SJL-3650
  • Texas – $1.2 million established and profitable home health agency with two offices and service area from Conroe to Galveston. Stoneridge File SJL-6249
  • Texas – $1.2 million home health Medicare provider. Showing upward trends. Staff in place. Stoneridge File SJL-3668
  • Virginia – $5 million Medicare certified home health agency. Great clinicals and reputation in the market for providing quality services. Stoneridge File SBB-8675
  • Florida – $4 million in pure private pay.  15% bottom line.  Accredited on the central east coast.  Stoneridge File SDC-3250. ON CONTRACT
  • Florida – $5 million Medicare agency located in the Tampa – St. Pete area.  Accredited, with solid bottom line.   Stoneridge File SBA-4109. ON CONTRACT
  • Massachusetts – $5 + million home health agency, primarily Medicaid, but also private pay and commercial insurance, plus Medicare certification. Zero deficiencies on last survey.  Stoneridge File SBA-9300. ON CONTRACT
  • Mid-Atlantic – $30 million Medicare/Medicaid agency with multiple branches in several states, including CON service areas. Long history and great reputation for quality care. Stoneridge File SBB-8300 ON CONTRACT
  • Pennsylvania – Approximately $2 million in revenue. Licensed for entire state of Pennsylvania, so ready for growth. Stoneridge File SJL-9991 ON CONTRACT
  • Pennsylvania – $1.8 million Medicare agency located in eastern Pennsylvania. 82% traditional Medicare. Growing agency with strong potential for future growth. Stoneridge File SBA-2745 ON CONTRACT
  • Texas – $7 million Houston-based Medicare home health agency with sister staffing company. Accredited, expertly run and growing. Stoneridge File SJL-1500 ON CONTRACT
  • Texas – $4.9 million well established Medicare provider in the Dallas/Ft. Worth metroplex. Deficiency free and showing positive growth. Stoneridge File SJL-4918 ON CONTRACT
  • Texas – $4.1 million Dallas based home care company. Well managed and showing strong growth trends for 2016. Stoneridge File SJL-6002 ON CONTRACT
  • Texas – $1.5 million all private pay agency located in Fort Worth, Texas. Excellent reputation, excellent reviews and extremely profitable. Stoneridge File SJL-5115 ON CONTRACT

To see more home care agencies and hospices exclusively listed for sale by Stoneridge Partners click here.

Do you know of any acquisitions that have taken place?  We would be interested in your comments.  At the top of this column is a “Contact Tab” with a section for comments.  These can be sent anonymously. The return email address can be left blank.  We are interested in what you have to say, or acquisitions that you know about.

Another Favorite from The New Yorker

 

 

 

 

 

 

 

 

 

 

 

 

For more cartoons and additional musings on the state of home care and what’s going on at Stoneridge Partners, visit our blog: Stoneridge Partners Blog

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As part of our continued Louisville expansion, Stoneridge Partners is pleased to welcome, Tina Mackin, as Director of Business Development.

Mackin,-Tina-headhot

 

 

 

 

 

 

 

 

 

 

 

 Home Health & Hospice Buying, Selling & Valuing Webinar on August 18th at 1:00 pm (EST)

 

 

 

 

 

 

 

 

 

 

 

 

 

From Rich Tinsley, Publisher of “The Home Health Index”. Rich can be reached by email at [email protected] or at 1-800-218-3944

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: Almost Family | Amedisys | LHC Group

Please follow us on Facebook  and Linkedin

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Kindred Healthcare Acquires In-Home Health Care Operations from the Arkansas Department of Health

Stoneridge Partners Represents Kindred in recent Arkansas acquisition

NEWS RELEASE      Source: Kindred Healthcare, Inc.

LOUISVILLE, Ky. & LITTLE ROCK, Ark.–(BUSINESS WIRE)–Aug. 1, 2016– Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) and the Arkansas Department of Health (“ADH”) today announced that the parties have completed a previously announced agreement for Kindred to acquire the in-home health care operations (the “Agency”) from ADH, which includes licenses to provide home health, hospice and personal care services throughout the state of Arkansas, for approximately $39 million. Kindred reached an agreement with ADH following a state bidding process.

This Smart News Release features multimedia.
Stoneridge Partners Represents Kindred in recent Arkansas acquisitionView the full release here: http://www.businesswire.com/news/home/20160801006178/en/

In the transaction, Kindred acquired the Agency’s licenses to provide home health and personal care services in 69 counties and hospice services in 42 counties. As part of the agreement, Kindred agreed to retain all current employees and agreed to serve all current patients upon consent. Including the home health and hospice services that Kindred previously provided in Arkansas, Kindred now provides in-home healthcare services in 72 of the state’s 75 counties.

“We welcome the Agency’s caregivers to our team as we expand our Kindred at Home operations in Arkansas,” said Benjamin A. Breier, Kindred’s President and Chief Executive Officer. “We are excited to build on the state’s program and look forward to bringing our care and clinical protocols to these operations to improve the ability of patients to safely return home or to remain in their home.”

“The Arkansas Department of Health is pleased to have completed our agreement with Kindred on schedule, in order to assure continuity of care for patients and a smooth transition for staff,” said Nathaniel Smith, MD, MPH, Director of the Arkansas Department of Health and State Health Officer. “I am happy to see these services continue inArkansas and am glad that our dedicated staff will have a chance to keep providing these services.”

“I am pleased the transfer of services from the Arkansas Department of Health’s In-Home Services program to Kindred Healthcare has been completed,” said Asa Hutchinson, Governor of Arkansas. “The sale’s finalization is a great next step for both patients and employees of the program. I look forward to Kindred Healthcare continuing the efforts of ADH in the private sector and keeping patients connected to exceptional home health, hospice and care services in Arkansas.”

Our Associate Buyside Partner Rhonda Gronberg represented Kindred in this recent acquisition of the Arkansas Department of Health’s in-home health operations. Other media coverage includes: Home Health Care News and Biz Journals

Stoneridge Partners Represents Kindred in recent Arkansas acquisition

Rhonda Gronberg

Rhonda Gronberg has worked over 20 years in the financial industry with major companies, including ITT Capital, GE Capital Corp., Bank of Tokyo and PNC Bank. As a result, she has developed an impressive client base and professional network across the country. Throughout her career, Rhonda has worked with owners of small companies, as well as, CEO’s and CFO’s of large corporations in helping them assess capital equipment financing needs. As Associate Buyside Partner, Rhonda works with large corporate and regional buyers to locate, examine and close quality home health and hospice agencies across the country. Rhonda works in our Ft. Myers, Florida, office. Contact her at [email protected] or (800) 218-3944.


About Kindred Healthcare
Kindred Healthcare, Inc., a top-90 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $7.2 billion(1). At March 31, 2016, Kindred through its subsidiaries had approximately 102,000 employees providing healthcare services in 2,700 locations in 46 states, including 95 transitional care hospitals, 19 inpatient rehabilitation hospitals, 92 nursing centers, 20 sub-acute units, 618 Kindred at Home home health, hospice and non-medical home care sites of service, 104 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,752 non-affiliated sites of service. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for seven years, Kindred’s mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve. For more information: Kindred Healthcare, Susan E. Moss, Senior Vice President, Marketing and Communications at 502-596-7296 or [email protected].
(1) Revenues based upon Kindred consolidated revenues for the twelve months ended March 31, 2016.


About the Arkansas Department of Health (ADH)
ADH is a centralized health department, operating health units in each of the state’s 75 counties. ADH works to protect, improve and promote the health of all Arkansans with the support of dedicated employees and public and private partners. Each year, Department employees monitor and investigate public health diseases and threats, provide preventive health services in clinical settings, enforce laws and regulations, support Hometown Health Improvement, promote healthy behaviors and respond to public health emergencies. For more information: Arkansas Department of Health / Office of Health Communications, Meg Mirivel, MA, Public Information Officer at 501-280-4768 or [email protected].

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