Home Health Index | 2017 DECEMBER UPDATE

Home Health Care Stocks Rise as LHC, Almost Family Announce Merger

Home health care stocks rose in November amid news that two home health care giants are joining forces, according to the latest update of the Home Health Index by Stoneridge Partners. The deal between LHC Group (Nasdaq: LHCG) and Almost Family (Nasdaq: AFAM) is expected to close at the beginning of 2018 and results in a company with a combined revenue of $1.8 billion. The implied transaction value is roughly $2.4 billion, according to LHC Group.

The Home Health Index, which tracks market values of three of the largest publicly traded home health care companies in the U.S.—Almost Family, Amedisys (Nasdaq: AMED) and LHC Group—gained 12.40% in November compared to the previous month. The index zoomed by the S&P 500, which rose 2.4% in November.

“When finalized, the merger between Almost Family and LHC Group will likely result in a big change for industry investors,” said Stoneridge President Rich Tinsley. “It will also change this Index, as we intend to add to it Kindred Healthcare.”

The combined organization will trade on the Nasdaq under the symbol “LHCG,” and operate out of Lafayette, Louisiana. When completed, the organization will have 781 locations total in 36 states and more than 31,000 employees.

News of the merger impacted share values: Lafayette, Louisiana-based LHC Group’s stock dropped 1.17% in November. Year to date, LHC Group’s share prices have climbed 43.92%, which is still the largest yearly gain on the Index.

Louisville, Kentucky-based Almost Family gained the most ground in November. The company’s share prices rose 28.02% that month. The latest gains pushed Almost Family’s year-to-date stock value up 34.69%.

Amedisys also saw big gains in November. The Baton Rouge, Louisiana-based company’s stock value grew 16.25% in the month. Year to date, its share prices have risen 26.67%, according to the Index.

Share prices for Addus HomeCare (Nasdaq: ADUS), which is not included in the index because so little of its income comes from Medicare, dipped 5.67% in November. Year to date, Addus’s stock price is down 4.99%.

Quote Of The Month 

“Primarily, we are seeing people utilizing home care and a smaller and smaller percentage using nursing home care.  People think, ‘While I might start out needing care at home, eventually I’ll need to be in a facility.’ But that’s not something we see in our data. For the most part, people are able to stay at home for the whole time.”  said Beth Ludden, Senior Vice President for Genworth.

Read the Full Article Here: How to Get Long-Term Care at Home Without Busting the Bank

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 of the Home Health Index to the percentage change in the S&P 500 Index for over 14 years, going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance over the past 24 months.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index December 2017 | Stoneridge Partners)

 

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

Company 11/30/17 1 mos change YTD change 11/30/16 11/30/15
Almost Family 59.4 +28.02% +34.69% 41.3 42.37
Amedisys 54 +16.25% +26.67% 41.44 40.59
LHC Group 65.77 -1.17% +43.92% 42.88 46.55
HH Index* 59.72 +12.40% +35.29% 41.87 43.17
S&P 500 2637.37 +2.40% +17.80% 2204.97 2080.41
Addus 33.3 -5.67% -4.99% 34.7 22.8

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) 11/30/17 11/30/16 11/30/15
Almost Family 946 548 493
Amedisys 1820 1410 1410
LHC Group 1280 841 868
HH Index Total 4046 2799 2771
Addus 410 313 239


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

Company 11/30/17 11/30/16 11/30/15
Almost Family 132% 89% 96%
Amedisys 125% 101% 115%
LHC Group 133% 95% 112%
HH Index Average* 130% 95% 107%
Addus 100% 87% 72


Multiples of EV/EBITDA

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

Company 11/30/17 11/30/16 11/30/15
Almost Family 23.43 11.81 13.43
Amedisys 17.25 17.77 15.83
LHC Group 13.91 10.21 11.19
HH Index Average* 18.20 13.26 13.48
Addus 12.27 12.94 10

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company it’s reporting. (Home Health Index December 2017 | Stoneridge Partners)

SOLD by Stoneridge!

  • Advanced Home Health Services of Moulton, TX was acquired by Excelin Home Health.  Partner, Joe Lynch, provided sell-side advisory services.
  • Home Therapeutic Solutions, Inc. of Houston, TX was acquired by Excelin Home Health.  Partner, Joe Lynch, provided sell-side advisory services.

Recent Transactions From Around The Country

  • Hospice Source, a full-service, national provider of medical equipment (“DME”), acquired Home Medical Professionals (HMP) in Gainesville, GA.  This acquisition expands Hospice Source’s geographical footprint into the greater Atlanta and Georgia markets.
  • ResCare, the largest diversified health and human services provider in the U.S., acquired A Place to Call Home, an Arizona based company providing foster care, respite, host home and related supports to children and individuals with intellectual and developmental disabilities.
  • LHC Group of Lafayette, LA agreed to enter into an all-stock merger of equals transaction with Almost Family of Louisville, KY.
  • Silver Oak Services Partners has agreed to acquire Caring People, a home healthcare agency that works with seniors in New York City.

Exclusively Listed For Sale By Stoneridge Partners

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

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Home Health Index December 2017 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 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 | 2017 NOVEMBER UPDATE

Home Health Care Stocks Slipped Before HHGM Decision

Home health care stocks fell sharply in October, perhaps on jitters related to the then-forthcoming home health groupings model (HHGM) decision, according to the latest data in the Home Health Index tracked by Stoneridge Partners. But the decision ultimately fell in the industry’s favor: The Centers for Medicare & Medicaid Services (CMS) on Nov. 1 released its final rule for the home health care prospective payment system (PPS) 2018 update without finalizing HHGM.

In the weeks leading up to the decision, however, the index reflected nervous anticipation among home health companies. The index, which tracks market values of three of the largest publicly traded home health care companies in the U.S.—Almost Family (Nasdaq: AFAM), Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG)—dropped 11.73% in October compared to the previous month.

The Index lagged behind the S&P 500, which ticked up 2.23% in October. And October’s drop is another sharp contrast to the Index’s rebound seen in September.

Investors were likely on edge over HHGM, which threatened to upend the home health payment system, cutting hundreds of millions in payments within its proposed changes.

“The big news here is what happened with HHGM,” said Stoneridge President Rich Tinsley. “That should overshadow many of the month’s losses. Investors can be confident HHGM is off the table for the immediate future.”

Lafayette, Louisiana-based LHC Group’s stock shed 6.16% in October. Year to date, LHC Group’s stock has climbed 45.62%, which is the largest yearly gain on the Index.

Amedisys, meanwhile, lost the most value in October. The Baton Rouge, Louisiana-based company’s stock value tumbled 16.99% in the month. Year to date, its share prices are still up 8.96%, according to the Index.

Louisville, Kentucky-based Almost Family also saw its stock value sag in October. The company lost 13.59% that month, erasing some of its 2017 gains. The company’s year-to-date share value was up just 5.22% in October.

Addus HomeCare (Nasdaq: ADUS), which is not included in the index because so little of its income comes from Medicare, saw no change in its share value in October. Year to date, Addus’s stock price has risen 0.71%.

 

Quote Of The Month 

“There’s an inaccurate perception among the American public that hospice means you’ve given up.  Those of us who have worked in the field have seen firsthand how hospice and palliative care can improve the quality of life. There’s a growing body of research showing that hospice and palliative care may prolong the lives of some people who receive care.  However, all too often, families sign on with hospice very late in the process. We often hear: I wish we had known about you sooner!” – J. Donald Schumacher, president and CEO of the National Hospice and Palliative Care Organization.

Read the Full Article Here: November is National Home Health, Hospice and Palliative Care Month

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 of the Home Health Index to the percentage change in the S&P 500 Index for over 14 years, going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance over the past 24 months.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index November 2017 | Stoneridge Partners)

 

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

Company 10/31/17 1 mos change YTD change 10/31/16 10/31/15
Almost Family 46.40 -13.59% +5.22% 36.63 41.50
Amedisys 46.45 -16.99% +8.96% 49.49 39.58
LHC Group 66.55 -6.16% +45.62% 35.93 45.06
HH Index* 53.13 -11.73% +20.37% 40.68 42.05
S&P 500 2575.5 +2.23% +15.04% 2179.98 2079.36
Addus 35.30 0% +0.71% 24.87 24.98

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) 10/31/17 10/31/16
Almost Family 752 515
Amedisys 1660 1730
LHC Group 1300 735
HH Index Total 3712 2980
Addus 444 313


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

Company 10/31/17 10/31/16
Almost Family 105% 92%
Amedisys 114% 113%
LHC Group 135% 86%
HH Index Average* 118% 97%
Addus 108% 87%


Multiples of EV/EBITDA

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

Company 10/31/17 10/31/16
Almost Family 18.63 12.93
Amedisys 15.8 18.45
LHC Group 14.13 9.14
HH Index Average* 16.19 13.51
Addus 13.3 12.94

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company it’s reporting. (Home Health Index November 2017 | Stoneridge Partners)

SOLD by Stoneridge!

  • Stoneridge represented a private pay home care company in Florida in a transaction that closed in October, 2017. Partner, Ben Bogan, provided sell-side advisory services for this transaction.

Recent Transactions From Around The Country

  • Odyssey Behavioral Healthcare, a portfolio company of Nautic Partners, acquired Selah House, an eating disorder treatment center for women in Anderson, Indiana.
  • Invo Healthcare, a portfolio company of The Wicks Group, The Jordan Company and Post Capital Partners announced the acquisition of Autism Home Support Services, a leading provider of home and center-based Applied Behavioral Analysis (“ABA”) therapy to children diagnosed with autism spectrum disorder.
  • Magellan Health, Inc. announced the acquisition of Senior Whole Health, a company focused on serving complex, high-risk populations.

Exclusively Listed For Sale By Stoneridge Partners

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

Another Cartoon Favorite from the New Yorker

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Home Health Index November 2017 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 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 | 2017 OCTOBER UPDATE

Home Health Care Stocks Posts Gains in September

Home health care stocks are once again gaining value at a steady clip, bucking the summer’s turbulent times, according to the latest data in the Home Health Index.

The index, which follows the market values of three of the largest publicly traded home health care companies in the U.S.—Almost Family (Nasdaq: AFAM), Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG)—climbed 8.66% in September compared to the previous month.

The Index beat the S&P 500, which rose 1.93% during the month of September. The latest numbers add more evidence that the home health industry is once again on firmer footing after taking a jolt over the summer on regulatory uncertainty.

“Investors seem to have regained confidence in the home health care industry after a brief downturn,” said Stoneridge President Rich Tinsley. “No company lost value in this month’s Index.”

Lafayette, Louisiana-based LHC Group’s stock rose a steady 8.69% in September. Year to date, LHC Group’s stock has leapt up 55.19%, which is the biggest gain of any company in the Index. LHC is also currently experiencing its lowest-ever vacancy and turnover rate for employees, CEO and chairman Keith G. Myers said during this year’s Home Health Care News Summit in Chicago.

Amedisys, which spent part of September preparing for and managing the effects of Hurricane Irma, also posted gains during the month. The Baton Rouge, Louisiana-based company’s stock value rose 7.12% in September. Year to date, its shares are up 31.27%, according to the Index.

Though its stock dipped in August, Louisville, Kentucky-based Almost Family is on an upward trajectory again. The company gained 10.27% in September, pushing its year-to-date share values up 21.77%.

Addus HomeCare (Nasdaq: ADUS), which is not included in the index because so little of its income comes from Medicare, grew its share values by 3.67% in September. Year to date, Addus’s stock price has risen 0.71%.

Quote Of The Month 

“We need to continue reaching out to patients, family caregivers and other health care professionals to help them understand the benefits that hospice care brings, particularly when provided in a timely fashion as part of a continuum of care,” said NHPCO President and CDO Edo Banach.

Read the Full Article Here: What Hospice Care Looks Like in America

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 of the Home Health Index to the percentage change in the S&P 500 Index for over 14 years, going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance over the past 24 months.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index October 2017 | Stoneridge Partners)

 

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

Company 9/30/17 1 mos change YTD change 9/30/16 9/30/15
Almost Family 53.70 +10.27% +21.77% 36.77 40.05
Amedisys 55.96 +7.12% +31.27% 47.44 37.98
LHC Group 70.92 +8.69% +55.19% 36.88 44.77
HH Index* 60.19 +8.66% +36.36% 40.36 40.93
S&P 500 2519.36 +1.93% +12.53% 2168.27 1920.23
Addus 35.3 +3.67% +.071% 26.16 31.15

Although we track the performance of Addus, they are not included in our HH Index because very little of their revenue comes from Medicare.

 

Enterprise Value (EV)

EV (in M) 9/30/17 9/30/16
Almost Family 896 515
Amedisys 1928 1730
LHC Group 1402 760
HH Index Total 4226 3005
Addus 438 331


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

Company 9/30/17 9/30/16
Almost Family 125% 88%
Amedisys 131% 128%
LHC Group 144% 89%
HH Index Average* 133% 102%
Addus 106% 91%


Multiples of EV/EBITDA

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

Company 9/30/17 9/30/16
Almost Family 22.2 12.32
Amedisys 22.77 20.81
LHC Group 15.18 9.46
HH Index Average* 20.05 14.20
Addus 13.44 13.66

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company it’s reporting. (Home Health Index October 2017 | Stoneridge Partners)

SOLD by Stoneridge!

  • Sun Cities Caregivers of Sun City, AZ.  Partner, Brian Bruenderman, provided sell-side advisory services.
  • Champion Caregivers of Ft. Worth Texas was aquired by Bluebird Homecare, Inc. Partner, Joe Lynch, provided sell-side advisory services.

Recent Transactions From Around The Country

  • Stonerise at Home has expanded it’s services into Northern West Virginia, Southern West Virginia and Eastern Ohio with the aquisition of MediHome Health Agency.
  • The Vistria Group aquired majority stake in St. Croix Hospice based out of Oakdale, Minnesota.
  • D’Amore Healthcare, Inc. aquired Pat Moore Foundation, a substance abuse, detoxification and addiction treatment center in Huntington Beach, California.
  • The Ensign Group, has acquired Comfort Hospice Care, a hospice provider serving Southern Nevada through a subsidiary of its home health and hospice portfolio, Cornerstone Healthcare, Inc.
  • LifeCare Home Health LLC, a post-acute health care provider, announced the acquisition of Beyond Faith Homecare & Rehab LLC, which has multiple locations across Texas.

Exclusively Listed For Sale By Stoneridge Partners

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

Another Cartoon Favorite from the New Yorker

 

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Home Health Index October 2017 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 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 | 2017 SEPTEMBER UPDATE

Home Health Care Stocks Regain Footing in August

The share prices of two of the three biggest public home health care companies are on the rebound after a turbulent July, according to the latest data in the Home Health Index tracked by Stoneridge Partners.

The index, which follows the market values of three of the largest publicly traded home health care companies—Almost Family (Nasdaq: AFAM), Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG)—gained 7.42% in August compared to the previous month.

The Index beat the S&P 500, which rose a steady 0.05% during the month of August. The 7.42% increase marks a dramatic rebound from July, when the Home Health Index tumbled 19.57% on fears that the Centers for Medicare & Medicaid Services’ (CMS) proposed home health groupings model (HHGM) could shake up the market.

“Home health companies rebounded in August after regulatory concerns marked the previous month,” said Stoneridge President Rich Tinsley. “The sector continues to have an ‘up’ year relative to the stock market.”

Though LHC Group saw a significant drop in its share value in July, the Lafayette, Louisiana-based company’s stock climbed 12.69% in August. Year to date, LHC Group’s stock has jumped 42.78%.

Baton Rouge, Louisiana-based Amedisys also had a good month. The company’s stock prices rose 10.30% in August. Year to date, its shares are up 22.54%, according to the Index. Amedisys CEO Paul Kusserow recently said the home health industry represented “a united front” in opposition to the proposed payment model.

Only one company in the index didn’t share the growth in August. Louisville, Kentucky-based Almost Family’s stock shed 1.52% in August. Despite the drop, the company’s share values are up 10.43%, year-to-date.

Addus HomeCare (Nasdaq: ADUS), which is not included in the index because so little of its income comes from Medicare, edged up 0.29% in August. Year to date, Addus’s share price has fallen 2.85%.

Quote Of The Month 

“This is the first time that any administration has seemed to be so focused on regulatory relief,” said Vinita Ollapally, manager of regulatory affairs for the American College of Surgeons.

Read the Full Article Here: How the Trump administration is reshaping health care — without Congress

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 of the Home Health Index to the percentage change in the S&P 500 Index for over 14 years, going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance over the past 24 months.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index September 2017 | Stoneridge Partners)

 

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

Company 8/31/17 1 mos change YTD change 8/31/16 8/31/15
Almost Family 48.70 -1.52% +12.13% 39.79 44.30
Amedisys 52.24 +10.30% +11.10% 53.55 38.64
LHC Group 65.25 +12.69% +26.70% 45.26 43.30
HH Index* 55.40 +7.42% +16.82% 46.20 42.08
S&P 500 2471.65 +0.05% +10.34% 2170.95 1972.18
Addus 34.05 +0.29% -3.14% 18.86 28.74

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) 8/31/17 8/31/16
Almost Family 827 540
Amedisys 1719 1890
LHC Group 1299 911
HH Index Total 3845 3341
Addus 424 232


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

Company 8/31/17 8/31/16
Almost Family 116% 97%
Amedisys 116% 144%
LHC Group 134% 110%
HH Index Average* 122% 117%
Addus 103% 67%


Multiples of EV/EBITDA

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

Company 8/31/17 8/31/16
Almost Family 20.47 12.63
Amedisys 20.30 23.64
LHC Group 14.06 11.08
HH Index Average* 18.28 15.78
Addus 12.799 9.68

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company it’s reporting. (Home Health Index September 2017 | Stoneridge Partners)

SOLD by Stoneridge!

  • CareFinders Total Care, a New Jersey-based home healthcare provider, completed the acquisition of Sovereign Home Healthcare of Connecticut. Partner, Brian Bruenderman, provided sell-side advisory services.

Recent Transactions From Around The Country

  • Seaside Healthcare has acquired the Savannah and Atlanta locations of Access MHA of Georgia, a community based mental health and substance use disorder treatment provider for children, adolescents and adults.
  • All Metro Health Care acquired Massachusetts-based, Independence Healthcare Corp., a provider of non-medical home healthcare services.
  • UNC Health Care and Carolinas Healthcare System, two of the largest healthcare providers in North Carolina have announced their plan to create one of the largest hospital networks in the country.
  • Associated Home Care, a subsidiary of Amedisys, Inc., has entered into an agreement to acquire Intercity Home Care, a Massachusetts-based personal care provider. The transaction is expected to close October 1, 2017.
  • The Ensign Group acquired two Arizona skilled nursing facilities on September 1, 2017: Desert Blossom health and Rehabilitation Center in Mesa, AZ  and Pueblo Springs Rehabilitation Center in Tucson, AZ.
  • AccentCare strikes a joint venture deal with UCLA Health aimed at providing a continuum of care for patients that have been discharged from the hospital.
  • LHC Group has entered into a joint venture with Texas-based Christus Health, a non-profit health system.
  • In Nebraska, Memorial Community Hospital & Health System has selected the Visiting Nurse Association to take over its home health and hospice services.

Exclusively Listed For Sale By Stoneridge Partners

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

Another Cartoon Favorite from the New Yorker

 

Map

 

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Home Health Index September 2017 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 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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Sovereign Home Health of Connecticut Acquired by CareFinders Total Care


Sell side advisory services during the acquisition was provided by Stoneridge Partners, Partner Brian Bruenderman.


NEWS RELEASE
CareFinders Total Care Completes Acquisition of Sovereign Home Health of Connecticut | New Jersey’s Leading Home Care Company Expanding to Connecticut

NEWS PROVIDED BY

CareFinders Total Care 

HASBROUCK HEIGHTS, N.J.Aug. 15, 2017 /PRNewswire/ — CareFinders Total Care LLC (“CareFinders”), a leading home healthcare company based in New Jersey, announced that it has completed the acquisition of Sovereign Home Health of Connecticut, LLC (“Sovereign”). Based in Norwalk, Connecticut, Sovereign provides personal care and companion services to its clients in their homes and other facilities. CareFinders, based in Hasbrouck Heights, New Jersey, also provides non-skilled home care services to more than 8000 patients throughout New Jersey with 16 offices in the state.

“The completion of this transaction provides CareFinders with a great platform for growth in the state of Connecticutand creates a strong initial presence for the Company outside of New Jersey,” said Kevin Rogers, Chief Executive Officer of CareFinders. “Sovereign has grown rapidly in the counties it services and we are excited to expand its services throughout the whole state of Connecticut,” said Sanford Hausner, Co Chairman of CareFinders. “We are entering this important market with a well-respected home care provider that has created an impressive record of success.”

“This transaction is consistent with our growth strategy to expand and diversify our business through acquisitions, as well as organic growth, and is representative of the opportunities we see in other states in the Northeast and around the country,” said Linda Mintz, Co Chairman of CareFinders. “We believe the acquisition of Sovereign is the right next step in our growth trajectory to expand throughout the Northeast.”

“It is with great pleasure that we welcome Sovereign’s home health patients and employees into our CareFinders’ family,” said Rogers. “We take our commitment to caregiving very seriously, and look forward to making an even greater impact on the lives of patients that we serve as we move forward in our partnership with Sovereign in the state of Connecticut.”

“The Sovereign team is excited and proud to become part of this great organization,” said Syd Kain, Founder and President of Sovereign. “It is clear that the goals and values of CareFinders are consistent with those of our team, and that the already high quality of care provided to our clients will continue to increase as we transition into the CareFinders family.”

“Our mission as a Total Care company is to provide increasingly expanded state-wide coverage, superior technology, the highest standards of clinical expertise, and best-in-class trained and trusted caregivers throughout the state of Connecticut,” said Hausner.

CareFinders has been in growth mode since the current owners Linda Mintz and Sanford Hausner purchased the company in 2014. The company has completed 14 acquisitions in three and one-half years.

About CareFinders Total Care LLC

CareFinders Total Care LLC is one of the leading in-home care agencies in New Jersey providing home healthcare services to over 8,000 patients throughout the state from 16 offices. CareFinders was founded in 1995 and is licensed and accredited by the Commission on Accreditation on Home Care (CAHC). It employs over 7,500 Certified Home Health Aides and over 80 Registered Nurses and LPNs. For more information, visit www.carefinders.org or contact Linda Mintz, Co-Chairman at 201‐695‐8050.

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SOURCE CareFinders Total Care
http://www.carefinders.org

sell side advisory services during Sovereign Home Health acquisition

Brian Bruenderman

Partner Brian Bruenderman received his Bachelor of Arts degree and Juris Doctor from the University of Louisville. While in college, he purchased several small businesses and credits his later success to that experience. His business background and legal education give him the skills and perspective to successfully negotiate transactions all the way through closing. Specifically, his almost two decades of involvement with strategic buyers gives him a unique insight into how they approach valuation, diligence and negotiation. This combination of education and experience makes him a valuable addition to any transaction.

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Home Health Index | 2017 AUGUST UPDATE

Home Health Care Stocks Plummet in July

Home Health Index August 2017 | Stoneridge Partners: After six months largely marked by market gains, home health care companies saw their share values sharply drop in July, according to the latest figures from the Home Health Index by Stoneridge Partners. The index, which tracks the market values of three of the largest publicly traded home health care companies—Almost Family (Nasdaq: AFAM), Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG)—dropped 19.57% in July compared to the previous month. The decline was in stark contrast to the S&P 500, which climbed 1.93% in July from June.

The stock market reaction among home health companies was influenced by a significant proposal issued during the month that is expected to have wide-ranging consequences for the sector. Compared to the first half of 2017, home health care stocks were on a hot streak, vastly outpacing the S&P 500.

“Investors in July reacted to the proposed Home Health Groupings Model (HHGM) from the Centers for Medicare & Medicaid Services (CMS),” said Stoneridge President Rich Tinsley. “The proposed rule would overhaul reimbursement payment to Medicare-certified home health care providers and has the potential to cut nearly $1 billion in payments to the industry. The drastic cuts sent investors scurrying from public companies in the sector.”

Amedisys, based in Baton Rouge, Louisiana, saw its share price drop the most amongst its peers during July, with a decline of 24.60%. Year to date, the stock is still up 11.10%, according to the Index. Amedisys CEO Paul Kusserow recently stated in the company’s second quarter 2017 earnings call that while the proposed rule is worrisome, there is still a process to undergo before the rule will be implemented.

Louisville-based Almost Family’s stock also took a big hit in July, dropping 19.79% from June. Almost Family has still seen gains throughout the year, and its share price remains up 12.13% year to date, despite monthly losses.

LHC Group fared the best of its peers in July, though also experienced a significant drop in its share value. The Lafayette, Louisiana-based company’s share price declined 14.71%. Year to date, LHC Group’s stock has risen 26.70%. Despite the proposed rule, the company is moving forward with acquisition and joint venture deals, CEO and chairman Keith G. Myers announced during the company’s most recent quarterly earnings report.

Addus HomeCare (Nasdaq: ADUS), which is not included in the index because so little of its income comes from Medicare, also felt the sting of the proposal, with its share price dropping 8.74%. Addus, which is based in Frisco, Texas, and is known as a personal care services provider, has maintained steady gains throughout the year; its stock is up 10.34% year to date.

Quote Of The Month 

“There should be naloxone available in the Starbucks, because we have people overdosing in the bathrooms of Starbucks,” says Dr. Andrew Kolodny, an addiction specialist with Brandeis University.

Read the Full Article Here: Should The Opioid Crisis Be Declared A National Emergency?

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 of the Home Health Index to the percentage change in the S&P 500 Index for over 14 years, going back to 2002.
[visualizer id=”8359″]
This is a 12 month trailing chart of the HH Index compared to the actual prices of the individual companies that make up the chart.
[visualizer id=”8361″]

This graph displays HH Index performance over the past 24 months.

[visualizer id=”8363″]
This graph compares the HH Index to the price of Addus stock (non-Medicare).
[visualizer id=”8362″]

(Home Health Index August 2017 | Stoneridge Partners)

 

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

Company 7/31/17 1 mos change YTD change 7/31/16 7/31/15
Almost Family 49.45 -19.79% +12.13% 40.30 43.76
Amedisys 47.36 -24.60% +11.10% 54.49 43.63
LHC Group 57.90 -14.71% +26.70% 45.39 40.27
HH Index* 51.57 -19.57% +16.82% 46.73 42.55
S&P 500 2470.30 +1.93% +10.34% 2173.60 2103.84
Addus 33.95 -8.74% -3.14% 18.45 27.14

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) 7/31/17 7/31/16
Almost Family 837 540
Amedisys 1556 1890
LHC Group 1137 911
HH Index Total 3530 3341
Addus 399 232


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

Company 7/31/17 7/31/16
Almost Family 125% 97%
Amedisys 105% 144%
LHC Group 121% 110%
HH Index Average* 117% 117%
Addus 97% 67%


Multiples of EV/EBITDA

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

Company 7/31/17 7/31/16
Almost Family 21.30 12.63
Amedisys 18.31 23.64
LHC Group 13.35 11.08
HH Index Average* 17.65 15.78
Addus 12.75 9.68

The above calculations are based on selling price being defined as Enterprise Value (EV), with data provided by Capital IQ. Enterprise value is defined as market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. EBITDA is calculated using methodology which may differ from that used by a company it’s reporting. (Home Health Index August 2017 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Boyne Capital Partners announced the acquisition of AmeriBest Home Care, Inc., a home care provider serving seniors and disabled residents in Pennsylvania.
  • ncgCare, a Richmond-based behavioral healthcare provider, has acquired Appalachian Community Services in North Carolina, a provider of mental health, substance abuse and ID/DD services.
  • Encompass Home Health and Hospice entered the state of Illinois with the acquisition of VNA Healthtrends.
  • Crossroads Treatment Centers has completed its acquisition of Center of HOPE, an opioid treatment program in Myrtle Beach, South Carolina.
  • JourneyPure, a Nashville, Tennessee-based addiction treatment provider has acquired The Center for Professional Excellence, a local provider of addiction and mental health services.
  • BayMark Health Services, Texas-based opioid treatment provider has acquired Valley Alliance Treatment Services, an opioid treatment center in Morgantown, West Virginia.
  • Berks Community Health Center announced they have signed an LOI to acquire All About Children Pediatric Partners in Reading, Pennsylvania.
  • MedEquities Realty Trust announced they have signed a definitive agreement with AAC Holdings to acquire four behavioral health and substance abuse treatment facilities in Las Vegas and Dallas.

Exclusively Listed For Sale By Stoneridge Partners

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

Another Cartoon Favorite from the New Yorker

 

Home Health Index August 2017 | Stoneridge Partners

 

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Home Health Index August 2017 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected] or (239) 561-0826 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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2017 TAHCH 48th Annual Meeting

Stoneridge Partners | 2017 TAHCH 48th Annual Meeting: Stop by booth 120 to talk strategy with Partners Brian Bruenderman, Joe Lynch and Associate Partner Charles Jantzi during the annual meeting of the Texas Association for Home Care & Hospice held Wednesday and Thursday, August 9 – 10, in The Woodlands, TX. This year’s event promises to be big with 400 industry leaders attending and over 40 business exhibiting.

As an association, TAHC&H has championed the collective interests of Texas home care and hospice agencies, organizations, and individual professionals since its founding in 1969. The organization works to give home care and hospice providers a strategic pathway to key state lawmakers and health care regulators. Its mission joins together member organizations and individuals in a shared commitment to every citizen in need of quality, affordable in home services.

Networking, education, and fun are part of the agenda for the 400+ annual meeting attendees which include: owners, C-level executives, administrators, clinical and operational management, as well as, clinical staff of licensed and certified agencies, pediatric providers, private pay agencies, community care providers and hospices. Partner Brian Bruenderman, Associate Partner Charles Jantzi and Partner Joe Lynch will be available for during the annual meeting for confidential consultations. To schedule, call (800) 218-3944 or email [email protected].


Stoneridge Partners | 2017 TAHCH 48th Annual Meeting
More information:
2017 TAHCH 48th Annual Meeting
TAHC&H


Stoneridge Partners is a professional mergers and acquisitions (M&A) advisory firm who works with mid-market home care, hospice and behavioral health companies – exclusively. Our primary focus has been and still is facilitating transactions that not only provide value, but also make sense for you. We know the market and the business exceptionally well and bring this insight to each and every interaction. If you would like to schedule a confidential meeting with a member of our firm, please call (800) 218-3944 or email [email protected].

If you would like a member of our firm to speak at your conference or association, please contact Tina Mackin at (800) 218-3944 or [email protected].

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Stoneridge Partners | 2017 Gulf Coast Home Care Conference & Expo

Stoneridge Partners | 2017 Gulf Coast Home Care Conference & Expo: Associate Partner Charles Jantzi will be attending the conference and expo held Monday through Wednesday, July 31- August 2, in Point Clear, Alabama. The 2017 Gulf Coast Home Care Conference & Expo is sponsored by Homecare Association of Louisiana (HCLA), Mississippi Association for Home Care (MAHC) and Home Care Association of Alabama (HCAA).

Charles will be available for confidential meetings. To schedule, stop by Booth #4, call (800) 218-3944 or email [email protected].


Stoneridge Partners | 2017 Gulf Coast Home Care Conference & Expo
More information:

HCLA

MAHC


Stoneridge Partners is a professional mergers and acquisitions (M&A) advisory firm who works with mid-market home care, hospice and behavioral health companies – exclusively. Our primary focus has been and still is facilitating transactions that not only provide value, but also make sense for you. We know the market and the business exceptionally well and bring this insight to each and every interaction. If you would like to schedule a confidential meeting with a member of our firm, please call (800) 218-3944 or email [email protected].

If you would like a member of our firm to speak at your conference or association, please contact Tina Mackin at (800) 218-3944 or [email protected].

 

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Stoneridge Partners | 2017 HCAF Annual Conference & Trade Show

Stoneridge Partners | 2017 HCAF Annual Conference & Trade Show: Our team will be attending the Home Care Association of Florida (HCAF) 28th Annual Conference & Trade Show held Tuesday through Thursday, July 25-27, in Orlando, FL. Considered Florida’s biggest home care industry event of the year, the event hosts more than 700 leaders in home care.

According to the conference brochure: In light of the constant changes and increased scrutiny facing home care providers, this year’s theme is REFLECT. RESET. RENEW. During the event, leaders will come together to grow their business, network, and acquire invaluable tools for success. There are opportunities to learn from industry experts how to maximize their business during our educational workshops, open forums, general sessions, and breakout sessions.

Our President and CEO Rich Tinsley will be presenting 9:30 – 10:20 am EDT Thursday morning, July 27. His topic will be “Building The Value of An Agency: An M&A Perspective.” During the session, Rich will walk through the steps of the successful sale of a business, including preparation, valuation, due diligence and closing. He will also provide an in-depth rundown on the many factors affecting the market and what it means to the owner and the company’s value.

Members of team will be available for private meetings throughout the conference. Our attendees include: President and CEO Rich Tinsley, Buy-Side Associate Partner Rhonda Gronberg, Associate Partner Charles Jantzi, and Associate Partner Coley McDevitt. To schedule a confidential consultation, call (800) 218-3944 or email [email protected].

Stoneridge Partners | 2017 NAHC Financial Management Conference

The mergers and acquisitions (M&A) market is changing rapidly, trending towards a bifurcated market for privately-held agencies. Factoring in the 2016 election outcome and the current activity in the public sector, it is imperative that decision makers understand the market and its impact on the industry as they move forward with critical decision that affect their businesses and their future values. – Rich Tinsley

2017 HCAF Annual Conference & Trade Show
More information:
2017 HCAF 28th Annual Conference
HCAF


Stoneridge Partners is a professional mergers and acquisitions (M&A) advisory firm who works with mid-market home care, hospice and behavioral health companies – exclusively. Our primary focus has been and still is facilitating transactions that not only provide value, but also make sense for you. We know the market and the business exceptionally well and bring this insight to each and every interaction. If you would like to schedule a confidential meeting with a member of our firm, please call (800) 218-3944 or email [email protected].

If you would like a member of our firm to speak at your conference or association, please contact Tina Mackin at (800) 218-3944 or [email protected].


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2017 NAHC Financial Management Conference

Stoneridge Partners | 2017 NAHC Financial Management Conference: Our team will be attending the National Association for Home Care & Hospice (NAHC) Financial Management Conference and Expo held Sunday through Tuesday, July 16 to 18, in Hartford, CT. The conference and expo is a well-attended event for financial managers and vendors in home care and hospice.

According to the conference brochure, the event brings together the industry’s top financial and legal experts, the National Association for Home Care & Hospice and its affiliate, the Home Care & Hospice Financial Managers Association (HHFMA), provide attendees with opportunities to advance their understanding of financial management techniques and business strategies in home care and hospice.

For over 20 years, NAHC and HHFMA have empowered people with groundbreaking news, education, networking opportunities, research, and resources.

Members of team will be available for private meetings throughout the conference. To schedule, call (800) 218-3944 or email [email protected].

Our attendees include: President & CEO Rich Tinsley, Partner Ben Bogan, Partner Brian Bruenderman, Managing Partner Katie Clore, Associate Partner Charles Jantzi, Associate Partner Coley McDevitt, and Partner Joe Lynch.


Stoneridge Partners | 2017 NAHC Financial Management Conference
More information:
2017 NAHC Financial Management Conference
NAHC


Stoneridge Partners is a professional mergers and acquisitions (M&A) advisory firm who works with mid-market home care, hospice and behavioral health companies – exclusively. Our primary focus has been and still is facilitating transactions that not only provide value, but also make sense for you. We know the market and the business exceptionally well and bring this insight to each and every interaction. If you would like to schedule a confidential meeting with a member of our firm, please call (800) 218-3944 or email [email protected].

If you would like a member of our firm to speak at your conference or association, please contact Tina Mackin at (800) 218-3944 or [email protected].


sell side advisory services during Sovereign Home Health acquisition
Stoneridge Partners | 2017 NAHC Financial Management Conference
Stoneridge Partners | 2017 NAHC Financial Management Conference
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