Stoneridge Partners | 2017 FHPCA Hospice Keys Forum

Rich Tinsley

Stoneridge Partners | 2017 FHPCA Hospice Keys Forum: Rich Tinsley and Coley McDevitt will be attending “Hospice Keys | Core Practices, Better Care by the Florida Hospice & Palliative Care Association (FHPCA) held Thursday and Friday, May 25 – 26. The event will be held at Hyatt Regency Grand Cypress in Orlando, Florida.

Stoneridge Partners | 2017 FHPCA Hospice Keys Forum

Coley McDevitt

During the 2 day forum, Rich and Coley will be manning booth #705 for Stoneridge Partners while social workers, chaplains, physicians, nurses, aides and anyone who works in end of life care unlocks the key fundamental practices that equip all hospice professionals for providing excellent end of life care.

Established in 1982, FHPCA was formed to be a unified voice for hospice programs in Florida. This forum is just one of many events by the organization to offer opportunities for education, collaboration and community to Florida hospices.

According to FHPCA’s mission statement: For over 25 years, the Florida Hospice & Palliative Care Association will strive to assure excellence in, and expand access to, hospice and palliative care, and advocate for the needs of those in the final phases of life.

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


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


Stoneridge Partners | 2017 FHPCA Hospice Keys Forum

More information:
FHPCA: Hospice Keys Forum
Florida Hospice & Palliative Care Association

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Stoneridge Partners | 2017 Home Health Administrator’s Summit: Partner Joe Lynch will be attending Home Health Administrator’s Summit by Decision Health held Monday through Wednesday, May 15 – 17. The event will be held at Caesar’s Palace in Las Vegas, NV.

Stoneridge Partners | 2017 Home Health Administrator's Summit

Joe Lynch

During the 2 1/2 day summit, Joe will be manning booth #1 for Stoneridge Partners while hundreds of health industry leaders take advantage of opportunities for home health business development and networking. Event speakers will be coving topics such as audit-proof documentation, improving star ratings, CMS regulatory requirements and positioning an agency for growth.

As a former co-owner and CFO of a Medicare and private duty agency, Joe has the unique perspective as an owner and a seller. Throughout his career, he has been a leader in revenue growth and expansion via start-ups, acquisitions and organic growth through marketing and sales in both public and private companies. Joe will be available for private meetings throughout the conference. To schedule, call (800) 218-3944 or email [email protected].

According to its mission statement: For over 25 years, DecisionHealth® has served as the industry’s leading source for news, analysis and instructional guidance with brand names such as Home Health Line and Part B News. Our unique blend of award-winning on-staff journalists and unmatched access to health care executives, providers and their administrative staffs results in business management advice and operationally focused editorial that has captured the attention of nearly 100,000 home health care professionals and specialty physician practices.

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


Stoneridge Partners | 2017 Home Health Administrator's Summit

More information:
DH Home Health Administrator’s Summit
Decision Health

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Home Health Companies Record Strong April Results

Home Health Index May 2017 | Stoneridge Partners: The share prices of publicly held home health companies reached a new index high in April, rising nearly 7% during the month and far outpacing the performance of the S&P 500 index, according to the Home Health Index tracked by Stoneridge Partners.

Year over year, home health companies Almost Family (Nasdaq: AFAM), Amedisys (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG) on average have gained approximately 32% in value versus the S&P 500, which has risen 17% over the same time frame and which rose just over 1% during April. The Home Health Index has risen steadily this year, surpassing the performance of the overall stock market.

April’s Home Health gains surpassed a slighter uptick of 1.77% seen in March and 4.5% increase in February, marking a steady, consistent climb.

“The Home Health Index saw a solid increase in April, in part due to confidence among providers following regulatory delays and pro-business initiatives in Washington,” said Rich Tinsley, president of Stoneridge Partners. “The outlook remains strong for home health companies that are considering a sale as part of a succession plan, or simply to take advantage of the strong sellers’ market.”

By company, all three providers tracked by the Home Health Index experienced gains during April, with Amedisys seeing the greatest increase at more than 12% month-over-month. The company’s CEO Paul Kusserow commented during a recent investor healthcare conference that the company views an opportunity in several recent home health regulatory delays, and the impact of fewer rules from the Centers for Medicare and Medicaid Services (CMS) on Amedisys’s performance.

LHC Group’s share price increase tapered during April to 4.25%, after a major uptick of 9.58% in March, while Almost Family’s performance reversed course in April and ticked up 4.09% after experiencing a 4.31% decline the previous month.

Addus Homecare (Nasdaq: ADUS), which is not tracked by the index because little of its revenue comes from Medicare, also shifted course in March, with a 5.65% gain in its share price. The company posted losses in the three previous months, most recently declining 2.82% in March.

Enterprise value of all four publicly held companies, including Addus, has risen year over year to date, with selling price as a percent of revenue exceeding 100% in all cases, according to Stoneridge Partners’ analysis.

 

Quote Of The Month 

“We are facing the most complex macroeconomic environment in recent memory – but despite the complexities, executives don’t have the option to wait and see. They must be cognizant of potential uncertainties, while actively maintaining their search for strategic opportunities to drive growth. The risk of being left behind is far too great to ignore – so the deals continue.” said William M. Casey, EY Americas Vice Chair of Transaction Advisory Service.

Read the Full Article Here: Healthy M&A Expected Following Trump’s First 100 Days

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 May 2017 | Stoneridge Partners)

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

Company 4/30/17 1 mos change YTD change 4/30/16 4/30/15
Almost Family 49.65 +4.09% +29.87% 37.24 44.71
Amedisys 57.63 +12.23% +46.57% 48.34 26.78
LHC Group 55.43 +4.25% +22.39% 35.56 33.03
HH Index* 54.24 +6.89% +32.46% 40.38 34.84
S&P 500 2388.13 +1.60% +16.84% 2059.74 2060.25
Addus 34.60 +5.65% -48.63% 17.19 23.02

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) 4/30/2017 4/30/2016
Almost Family 779 489
Amedisys 1950 1780
LHC Group 1010 756
HH Index Total 3739 3025
Addus 409 192


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

Company 4/30/2017 4/30/2016
Almost Family 125% 96%
Amedisys 137% 145%
LHC Group 122% 98%
HH Index Average* 128% 113%
Addus 102% 57%


Multiples of EV/EBITDA

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

Company 4/30/2017 4/30/2016
Almost Family 19.77 13.33
Amedisys 23.92 19.95
LHC Group 13.06 9.75
HH Index Average* 18.92 14.34
Addus 13.10 8.02

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 May 2017 | Stoneridge Partners)

Recent Transactions From Around The Country

  • AccentCare, a multi-state home health and hospice provider, has acquired Mississippi’s largest home health provider, Sta-Home Health & Hospice.
  • Origins Behavioral Healthcare, a provider of residential and outpatient substance use treatment, was acquired by TRT Holdings, Inc.
  • Amedysis, Inc., the Baton Rouge, Louisiana-based home health and hospice provider signed a definitive agreement to buy the assets of the Knoxville-based personal care provider, East Tennessee Personal Care Service.
  • Addus Homecare signed a definitive agreement to purchase Options Home Care, a provider of personal care services across New Mexico.

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

HHI Check

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Home Health Index May 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

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Stoneridge Partners | 2017 ANCOR Conference: Taking the Helm

Rich Tinsley

Stoneridge Partners | 2017 ANCOR Conference: Taking the Helm: Meet Rich TinsleyBrian Bruenderman, and Brian Heck during ANCOR‘s Annual Conference. Rich, Brian and Brian H. will be at booth #11 Monday, May 1, from 3:30 – 7 pm and Tuesday, May 2, from 7:15 am – 4:45 pm. Stop by to discuss the market, growth opportunities or selling options. The event is held at the Marriott River Center in San Antonio, TX, from May 1 – 3.

Stoneridge Partners | 2017 ANCOR Conference: Taking the Helm

Brian Bruenderman

Attendees include executive-level staff, program managers, and Direct Support Professionals who all come together to discuss the impact of national policies and regulations on services; learn how the latest research findings can influence policymaking; and hear how their peers successfully leverage the latest technology or designed an innovative approach to solve a long-standing challenge.

Rich Tinsley, Brian Bruenderman and Brian Heck have been in the healthcare industries for over two decades. They will be available for private meetings throughout the conference. To schedule a confidential consultation, call (800) 218-3944 or email [email protected][email protected] or [email protected].

ANCOR, the American Network of Community Options and Resources, is a national, nonprofit trade association representing more than 1000 private community providers of services to people with disabilities. According to ANCOR, the annual conference brings together hundreds of attendees who represent private community providers of services and supports for individuals with intellectual and developmental disabilities around the country.


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].


Stoneridge Partners | 2017 ANCOR Conference: Taking the Helm

 

Stoneridge Partners | 2017 ANCOR Conference: Taking the Helm

More information:
2017 ANCOR Annual Conference
ANCOR

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