TREATMENT CENTERS FOR SALE
  • 22 bed full continuum SUD treatment center, dual diagnosis, Joint Commission accredited
  • $5 million revenue; $1 million EBITDA
  • In-network with excellent rates
  • Great local and regional referral sources and desirable niche market, solid census and numbers, real estate possible, wonderful opportunity, great timing for investor
  • Premier provider of primary mental health services for adolescents aged 13-18
  • One location in Huntington Beach (capacity of 12) with second location in South County opening later this summer
  • In process of going in-network with Anthem, Cigna and Aetna
  • Business model break-even at census of 5 (average in census May/June)
  • Open to debt/loan or equity investment sale, huge growing long term opportunity
  • 28 Bed, IOP Capacity of 40, full continuum SUD treatment center, dual diagnosis, pending JCAHO
  • $4+ million revenue, highly competitive in-network contracts, average census of 30
  • Existing marketing relationships with county, parole, local hospitals, churches and universities
  • Solid business in desirable location, little competition, good opportunity
  • National growth opportunity
  • No direct competition for niche market
  • Unique program and strong branding
  • PHP/IOP with census and revenue growth
  • Seeking strategic partner

 

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AGENCIES FOR SALE

NEW CALIFORNIA: Stoneridge File #STS-1907
  • $4.8 million neuroscience-driving recovery treatment center for traumatic brain injury and SUD
  • Has helped over 180 professional athletes from the NFL, NHL, NBA and MLB
  • $1.2 million AEBITDA
  • Great campus offering full continuum of care
  • Zero competition in this space
NEW CONNECTICUT: Stoneridge File #SBB-3697
  • $6 million Medicaid/Medicare home care agency
  • 13-year history, clean surveys
  • Consistent growth
  • $1.7 million ID/DD agency
  • Long history in the community
  • Profitable/recent rate increase
NEW SOUTH TEXAS: Stoneridge File #SBA-8064
  • Hospice
  • $3.5 Million in annual revenue
  • Accredited
  • Clean: No cap or regulatory issues
  • 48 bed full continuum treatment campus, all in-network
  • Established management team, 3-year CARF Accredited
  • $1.7 million of AEBITDA on $6 million of revenue
  • Major metropolitan market
  • Great asset for a strategic buyer
  • 36 bed full continuum treatment center located near a major metropolitan market
  • State-of-the-art campus with growth potential
  • Growing census, in-network for most insurance
  • Motivated seller
  • $13 million revenue LHCSA
  • 30-year history
  • Licensed in all 5 boroughs
  • $3 million all Medicaid home care company
  • Located in Houston, TX
  • 20% + year over year revenue growth since 2016
  • Nice bottom line
  • $2.2 million Dallas-area Medicare home health agency
  • 22% bottom line
  • Well-established with a very clean compliance record
  • Full management team in place
  • $1.7 million Medicare home health agency located in Southwest Houston
  • Well-established with predictable referral sources
  • Very profitable

 

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Mixed Results Drag Home Health Stocks Down Overall in May 

Mixed Results Drag Home Health Stocks Down Overall in May

 The U.S. stock market took a downward turn in May – and home health stocks were not immune to the dip, according to the latest Home Health Index (HHI) from M&A advisory firm Stoneridge Partners.

As a whole, home health stocks were down 2.86% in May over the previous month. That is in comparison to the S&P 500 which sank further — 6.11% — in May compared to April. But even within the broader market downturn, there were still some bright spots for home heatlh.

The stock value of Lafayette, LA-based LHC Group was up slightly, by 1.58%. Year to date, LHC Group stock is up 20.88%. And Frisco, TX-based Addus saw its stock value rise 0.53% in May compared to April. Year to date, Addus stock is down 0.07%. In contrast, stock values for Baton Rouge, LA-based Amedisys were down 6.96% in May over the previous month. Year to date, Amedisys stock is down 4.25%.

“May produced mixed results for home health stocks,” said Stonereidge Patners President Rich Tinsley. “While they were down as a group, we’re continuing to see some positive performance from Addus and LHC. I expect Amedisys to level out in the near-term as well.”

The Stoneridge Partners HHI follows the stock values of Amedisys Inc. (Nasdaq: AMED) and LHC Group (Nasdaq: LHCG), two of the country’s largest independent and publicly-traded home health companies. Stoneridge does not include Addus HomeCare Corporation (Nasdaq: ADUS) in its final HHI calculations but still tracks the provider’s stock monthly.

“We’re getting into crunch time. The home health industry is really charging full-steam ahead in its preparations for the Patient-Driven Groupings Model,” Tinsley said. “It’s going to be interesting to watch stock performance as we near that January 1, 2020 implementation date.”

Quote Of The Month

“Although there are no formal metrics of quality for pediatric home health, it is evident from several national surveys that family caregivers are frequently shouldering enormous burdens that lead them away from their own gainful employment and create social, emotional and financial hardship,” researchers Ann & Robert H. Lurie of Children’s Hospital of Chicago and Northwestern University Feinberg School of Medicine

Read the Full Article Here:  Shortage of home healthcare for youth is draining families emotionally and financially 

 

See It To Believe It!

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

  • 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 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 since 2002.

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

(Home Health Index June 2019 | Stoneridge Partners)

 

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

Company 5/31/19 1 mos change YTD change 5/31/18 5/31/17
Amedisys 111.88 -6.96% -4.25% 76.67 59.92
LHC Group 112.95 +1.58% +20.88% 77.23 60.2
HH Index* 112.42 -2.86% +6.92% 76.95 59.17
S&P 2751.98 -6.11% +10.28% 2732.54 2411.8
Addus 68.01 +0.53% -0.07% 58.25 37.1

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) 5/31/19 5/31/18 5/31/17
Amedisys 3840 2510 1780
LHC Group 3980 1430 1050
HH Index Total 7820 3940 3609
Addus 860 585 376


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

Company 5/31/19 5/31/18 5/31/17
Amedisys 222% 162% 122%
LHC Group 197% 135% 112%
HH Index Average* 210% 149% 117%
Addus 157% 137% 91%


Multiples of EV/EBITDA

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

Company 5/31/19 5/31/18 5/31/17
Amedisys 21.84 18.13 18.7
LHC Group 20.76 15.97 12.22
HH Index Average* 21.30 17.05 14.97
Addus 20.99 18.01 11.19

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 to it’s reporting. (Home Health Index June 2019 | Stoneridge Partners)

Recent Transactions From Around The Country

  • Hospice and palliative care provider Ascend, which has offices in seven states, is extending its services across Puerto Rico with the acquisition of San Juan-based Grace Hospice
  • The Ensign Group, Inc. acquired Preceptor Health Care in eastern Wisconsin
  • JourneyCare, Illinois’ largest nonprofit community-based hospice and palliative care provider acquired Northwestern Memorial Health Care’s home health and hospice programs
  • Alpine Investors acquired leading home care provider, Circle of Life Home Care Anishinaabe, Inc.
  • Care Advanatage acquired Capital City Nurses and its sister company, Coastal Home Care

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.

SOLD!!! By Stoneridge

  • Stoneridge Partners represented a Florida based  agency that closed May 2019
  • Stoneridge Partners represented a Maryland based agency that closed in May 2019

Another Cartoon Favorite 

   

 

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Home Health Index June 2019 | Stoneridge Partners

From Rich Tinsley, Publisher of “Home Health Index”. Rich can be reached at [email protected]rtners.com 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: Amedisys | LHC Group

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