Stoneridge Partners | Home Health Index June 2012: What a lousy month! Both the Stoneridge Partners Home Health Index (HH Index), and the market in general were down. The S&P 500 put in its worst month in two years, while our HH Index did even worse.

We started out the year with such optimism. For the first three months our HH Index showed a very nice increase.  But in April we dropped 4%, and now May has knocked us down another 14%. We are still up for the year however…. about 18% while the S&P 500 is up only 4%.  But we are definitely headed the wrong way.

The only stock down for the year is Gentiva. Almost Family has turned in the best result for the year….up over 34%.

Our HH Index now sits at 13.89. The high was set in September, 2008 at 41.75.  Quite a difference.

All four companies were down for the month of May. LHC Group turned in the best performance, down only 5.4%, while Gentiva turned in the worst performance, down over 32%.

Here are the results:

Chart6

We also note that Addus HealthCare’s stock was down 13.6% but remains up about 12% for the year.  They closed May at 3.99.  They are a public company (NASDAQ:ADUS), but not in our HH Index.

 

 

HOT OFF THE PRESS: 

This was earnings season for the public companies.  We took a look at revenue and gross profit margins for the previous four quarters.  If you are looking for growth you are looking in the wrong place.

The revenue run rate for the four public companies at the end of the 1st quarter in 2011 was about $4.29 billion vs. $4.22 billion for the 1st quarter in 2012….down about 1.7%.

Even worse however was the gross profit….down about $11.4 million or 7.2%.

The only company showing a positive result was Almost Family, and their increase was due in a large part to their acquisition in the 3rd quarter, 2011 of Cambridge Home Health.

The result:

Wo Graphs

Totals in chart form:

Graph Final

“THE PARTNERSHIP FOR QUALITY HOME HEALTH CARE” is a consortium of home health care providers including the large public companies and NAHC.  Previously they put forth a proposal to limit “Outliers”, which was adopted and is reported to have produced savings to the Medicare program of $860 million.

The Partnership has made additional proposals to CMS for further controls.  According to the Almost Family earnings report, “The Partnership couldn’t be more aligned with the government to put controls in place that will be effective in impacting fraud and abuse”.

MERGER & ACQUISITION ACTIVITY

For another month there have no announcements from these public companies regarding any acquisition activity at all.

We believe this will soon change as there has been very little in the way of organic growth among these public companies.  We believe that acquisitions are an engine that can and will provide growth!

Here at Stoneridge Partners we are now seeing more acquisition activity coming from private equity rather than the public companies.

Announcements in the news:

We are pleased to announce that Jordan Health Services acquired Providence Homecare Services, a Medicare home care provider in Lufkin, Texas.   We provided sell side representation.

The KPC Group, based in Riverside, California, announced their acquisition of Ramona VNA & Hospice.  Their name has been changed to Empire Home Health & Hospice.

This is truly a global business.  Linde Healthcare, one of Linde Group’s three strategic growth pillars, announced that it has completed its acquisition of Air Product’s Continental European home care business.  This comprises homecare operations in Belgium, France, Portugal and Spain, with sales of €390 million, 250,000 patients and 850 employees.

EBITDA Multiples:  Multiples of EBITDA from earnings results through the 1st quarter 20012 with stock prices as of May 31, 2012.

Company Multiple of EBITDA
Almost Family 5.1
Amedisys 2.1
Gentiva 0.8

 

A Favorite Cartoon:

Stoneridge Partners | Home Health Index June 2012

 

Quote of the Month: “The power to tax involves the power to destroy”  Chief Justice John Marshall, 1819


Stoneridge Partners | Home Health Index June 2012: The Home Health Index (HH Index) measures the performance of four publicly traded home health companies, all listed on the NASDAQ — Almost Family (AFAM), LHC Group (LHCG), Gentiva (GTIV) and Amedisys (AMED). This index is updated monthly. If you would like to receive a monthly e-mail of this update, please e-mail us your name and e-mail address to [email protected]

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Stoneridge Partners | Home Health Index May 2012: It was kind of a blah month for the stock market in general and a little worse for our home health index (HH Index). After a great first quarter, the S&P 500 was down 0.75% in April. (Please note: Graphs and charts May 2012 are no longer available, but the data can still be seen in the recent issues of the Home Health Index.)

But after four straight months of terrific increases (up 44% in the first quarter alone), our HH Index lost about 4% in April….2% of which was on the final day of the month.

Our HH Index now sits at 16.27. The high was set in September, 2008 at 41.75. The only company that showed an increase in their stock price was Amedisys, closing out the month at 14.73, up 1.87%.

April Results:

Almost Family, down 6.3%
Amedisys, up 1.9%
Gentiva, down 5.4%
LHC Group, down 4.4%
Home Health Index, down 3.9%
S&P 500 down 0.7%

We also note that Addus HealthCare’s stock, after a 37.5% increase in March,  closed out April down 6.7%.  They are a public company (NASDAQ:ADUS), but not in our HH Index.

 

HOT OFF THE PRESS: 

Headline Florida: On May 2nd the feds charged 107 suspects with submitting $452 million in false bills to Medicare in seven U.S. cities. In Miami alone, 59 of those defendants — including three nurses and two therapists — were accused of trying to steal $137 million from the taxpayer-funded healthcare program.

Not surprisingly, “South Florida has the lion’s share of the cases,” U.S. Attorney Wifredo Ferrer told reporters after 22 indictments were unsealed in Miami federal court.

This follows up on last month’s announcement of the arrest of a Dallas physician, his office manager, and five owners of home health agencies who were arrested on charges related to their alleged participation in a nearly $375 million health care fraud scheme involving fraudulent claims for home health service.

Earnings Season:  All four public companies will be announcing their 1st quarter earning this week.  Almost Family led with their announcement on May 2.  Genitva and LHC Group are next next up on May 3rd, then Amedisys on May 8.

To listen to their reports you can go to their websites (links below) for dial-in information.  We will be giving a summary in next month’s update.

Revenue Growth: For the fourth quarter of 2011, we totaled the revenue for all four HH Index public companies and compared that to the third quarter.   According to their earnings reports, total revenue for all four companies in the 4th quarter, 2011 equaled $1.067B  compared to third quarter of $1.063B, which works out to the plus side a very modest $4M or 0.37%.

Revenue run rate based on the fourth quarter annualized follows, along with their market capitalization as of March 31, 2012 as published in Yahoo Finance:

Annual Run Rate (M) Market Cap (M)
Almost Family 357.3 243.6
Amedisys 1,483.0 433.8
Gentiva 1,796.8 270.1
LHC Group 630.8 348.7

 

“THE PARTNERSHIP FOR QUALITY HOME HEALTH CARE” is a consortium of home health care providers including the large public companies and NAHC.  Previously they put forth a proposal to limit “Outliers”, which was adopted and is reported to have produced savings to the Medicare program of $860 million.

The Partnership has made additional proposals to CMS for further controls.  According to the Almost Family earnings report, “The Partnership couldn’t be more aligned with the government to put controls in place that will be effective in impacting fraud and abuse”.

THE SENATE FINANCE COMMITTEE met again last week for a hearing on Medicare fraud and abuse.  Daniel Levinson, head of the Office of the Inspector General gave testimony that home health is an important ingredient in both delivering  medical care and saving money.  He went on to say that the government needs to develop better analytics to detect fraud, and to better regulate and monitor those that do get in.

MERGER & ACQUISITION ACTIVITY

There have not been any announcements from these public companies regarding any acquisition activity at all.  The market appears to be a little muddied as buyers factor in future decreases in Medicare reimbursement, whiles Sellers want 2009 prices.

We believe this will soon change as there has been very little in the way of organic growth among these public companies.  Acquisitions are an engine that can provide growth!

Announcements in the news:

Ancor Capital Partners sold Tritax Healthcare Services, a DFW home healthcare services provider to Jordan Health Services.  Ancor will now focus on pediatric care.

Home Health International, Inc. (PINKSHEETS: HHI) announced that is has entered into a letter of intent to acquire Mount Aubern, Inc. dba Associated Home Health, a Medicare-certified home health agency based in Florida.

Hospice Advantage, a Michigan based hospice, announced its acquisition of HC Healthcare (formerly Hospice Complete) located in Alabama.  Hospice Advantage now has over 50 locations nationwide.

Millenium Home Health Care, Broomall, PA announced that Saints Home Healthcare, a Medicare-certified home health care provider in Smyrna, Delaware is now part of their family of providers.

The Ensign Group, Inc. (NASDAQ:ENSG) announced their acquisition of Zion’s Way Home Health & Hospice based in St. George, Utah.

UPDATE: April, 2012 Results

For the month of April, the S&P 500 was down 0.75% while the Home Health Index was down 3.91%.

Percentage change in stock prices for these public companies for the month of April and Year to Date (YTD) follows:

Company April YTD
Almost Family -6.27% +47.04%
Amedisys +1.87% +35.01%
Gentiva -5.37% +22.67%
LHC Group -4.43% +38.04%
Home Health Index -3.91% +38.30%
S&P 500 -0.75% +11.16%
Company Multiple of EBITDA
Almost Family 5.9
Amedisys 2.8
Gentiva 1.3

Multiples of EBITDA based upon the earnings results for the year 2011with the stock prices as of April 30, 2012.

 

Stoneridge Partners | Home Health Index May 2012 Cartoon

Stoneridge Partners | Home Health Index May 2012

Quote: “A government that robs Peter to pay Paul can always depend on the support of Paul”. – George Bernard Shaw


Stoneridge Partners | Home Health Index May 2012: This Home Health Index (HH Index) measures the performance of four publicly traded home health companies, all listed on the NASDAQ — Almost Family (AFAM), LHC Group (LHCG), Gentiva (GTIV) and Amedisys (AMED). This index is updated monthly. If you would like to receive a monthly e-mail of this update, please e-mail us your name and e-mail address to [email protected].

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Stoneridge Partners | Home Health Index April 2012: The S&P 500 closes out the month up 3.1% and the first quarter up 12%…the best start to a year since 1998. Certainly nice results, but our Stoneridge Partners Home Health did even better. Bolstered by the strong market in general and perhaps a little clarity in future reimbursement, our Home Health Index gained 8.9% in March and is now up a whopping 44% for the first quarter. (Please note: Graphs and charts for the Stoneridge Partners | Home Health Index April 2012 are no longer available, but the data can still be seen in the recent issues of the Home Health Index.)

After nine straight months of decline, the HH Index has now been to the plus side four straight months….a very nice change.

Our HH Index now sits at 16.94. The high was set in September, 2008 at 41.75, so we have quite a ways to go….but, with four straight months to the upside, perhaps we’re on the way.

March’s increase was again led by Almost Family, up 13.7% and 57% YTD.

Amedisys came in a close second, up 12.5% in March.

March Results:

Almost Family, up 13.7%

Amedisys, up 12.5%

Gentiva, up 11.5%

LHC Group, up 8.9%

Home Health Index, up 11.8%

S&P 500 up 3.1%

We also note that Addus HealthCare’s stock closed out the month at $4.95, up a whopping 37.5% and now up 38.6% YTD.  They are a public company (NASDAQ:ADUS) but not in our HH Index.

Revenue Growth:  We totaled the revenue for all four HH Index public companies for the fourth quarter of 2011 and compared that to the third quarter.   According to their earnings reports, total revenue for all four companies in the 4th quarter, 2011 equaled $1.067B  compared to third quarter of $1.063B, which works out to the plus side a very modest $4M or 0.37%.

Revenue run rate based on the fourth quarter annualized follows, along with their market capitalization as of March 31, 2012 as published in Yahoo Finance :

Annual Run Rate (M) Market Cap (M)
Almost Family 357.3 243.6
Amedisys 1,483.0 433.8
Gentiva 1,796.8 270.1
LHC Group 630.8 348.7

As we mentioned in last month’s issue, Almost Family, in their earnings report, discussed their outlook for Medicare reimbursement in 2012.  Their computation took into account the market basket update, a downward adjustment of the case mix creep, the effect of reduced payments for high therapy episodes, the removal of two hypertension codes, re-calibrated case-mix weights, and a case-mix adjustment shifted to 2013.

Pretty complex, right? But the end result is an estimate that they feel will result in a 4.5% to 5.0% reduction in Medicare reimbursement in 2012.

MedPac issued their annual report, which again included two recommendations to Congress from last year’s report:

  • Create a home health copay.
  • Authorize faster case-mix changes to further reduce reimbursement

They report that freestanding home health agency margins will average 13.7%.  The report concludes “the high margins for home health care in 2011 reflect that payments substantially exceed costs and that reductions and administrative adjustments by CMS have not significantly reduced payments.”

Headline Dallas: and the story that continues to be part of every discussion regarding home health care: A Dallas physician, the office manager of his medical practice, and five owners of home health agencies were arrested on charges related to their alleged participation in a nearly $375 million health care fraud scheme involving fraudulent claims for home health service.

CMS also announced the suspension of an additional 78 home health agencies associated with the Dallas physician based on credible allegations of fraud against them.

If you would like a list of just who those 78 agencies are please let us know.

MERGER & ACQUISITION ACTIVITY

There has been very little in the way of public announcements regarding M&A. The market appears to be a little muddied as Buyers factor in future decreases in Medicare reimbursement, while Sellers want 2009 prices.

Susan Moyer, one of our partners, closed on another agency.  The Home Team of Kansas, primarily a Medicaid reimbursed agency, sold to a larger home care company.  Susan represented the seller.

We also note that TheraCare Home Health, a Texas based Medicare agency, sold to Cantex Senior Communities.

In the last two months Bayada Home Health Care acquired and transitioned 16 Nursefinders Home Care agencies, part of an AMD Health Care Company.

And, as reported last month, Arkansas based Aseracare Home Care & Hospice has now completely pulled out of Florida, closing down all of their locations.

LaFayette, LA:  An interesting development continues at LHC Group, as reported last month by Reuters – Private equity firm TPG Capital is considering making an offer for LHC Group, two people familiar with the matter said.

“Private equity makes more sense at this point,” said Kevin Ellich, senior research analyst at Piper Jaffray & Co. “You take the company private and deal with the regulatory and reimbursement headwinds in the next couple of years.”

One has to ask whether private equity also makes sense at other public home health companies as well.   Low multiples, increased regulations, Sarbanes-Oxley?  Get me out of here.

Visit Us: 

April 23-24 in Chicago for Decision Health’s M&A Home Health Conference. There will be two full days of presentations by the industry leaders. This is always a great conference and a must if you are even considering a sale of your agency.

UPDATE: March, 2012 Results

For the month of March, the S&P 500 was up 3.13% while the Home Health Index was up 11.8%.

Percentage change in stock prices for these public companies for the month of March and Year to Date (YTD) follows:

Company March YTD
Almost Family +13.7% +56.9%
Amedisys +12.5% +32.58%
Gentiva +11.5% +29.63%
LHC Group +8.9% +44.4%
Home Health Index +11.8% +43.9%
S&P 500 +3.1% +12.0%
Company Multiple of EBITDA
Almost Family 6.4
Amedisys 2.7
Gentiva 1.4

Multiples of EBITDA based upon the earnings results for the year 2011with the stock prices as of March 31, 2012.

 


Quote of the Month: “This year has been all about people coming away from the abyss that the world might end and now putting risk back on. We’re back to normalcy.”  Bob Doll, Money Manager, BlackRock,Inc.


Stoneridge Partners | Home Health Index April 2012: This Home Health Index (HH Index) measures the performance of four publicly traded home health companies, all listed on the NASDAQ — Almost Family (AFAM), LHC Group (LHCG), Gentiva (GTIV) and Amedisys (AMED). This index is updated monthly. If you would like to receive a monthly e-mail of this update, please e-mail us your name and e-mail address to  [email protected].

 

 

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Stoneridge Partners | Home Health Index March 2012: The Dow Jones closes out February at over 13,000 for the first time in about four years, and the S&P 500 is up 8.6% for the year. Nice results, but our Stoneridge Partners Home Health Index did even better, gaining 17% in February and is now up 28% for the year. (Please note: Graphs and charts from Stoneridge Partners | Home Health Index March 2012 are no longer available, but the data can still be seen in the recent issues of the Home Health Index.)

After nine straight months of decline, the HH Index has now been to the plus side for three straight months – very nice change. This past month’s increase was lead by Almost Family, up 21% in February and 38% YTD. LHC Group came in a close second, up 15% for February and 33% YTD.

February Results:

Almost Family, up 22.9%
Amedisys, up 22.4%
Gentiva, up 8.1%
LHC Group, up 15%
Home Health Index, up 17%
S&P 500 up 4.1%

The high for our HH Index was set in September, 2008 at 41.75, so we have quite a ways to go….but  we’re on the way.

We also note that Addus HealthCare’s stock closed out the month at $3.60/share, down 1.4% and up 0.8% YTD.  They are a public company (NASDAQ:ADUS) but not in our HH Index.

 

The month of February brought earnings results from all four companies for the year 2011.

Revenue Growth:  We totaled the revenue for all four companies for the fourth quarter and compared that to the third quarter to try to get some direction.

Total revenue for all four companies in the 4th quarter (000) equaled $1,067,000 compared to third quarter of $1,063,000, which works out to the plus side about $4M or 0.37%.

Almost Family lead with a 3.6% quarter to quarter increase, and LHC Group was up 2.8% quarter to quarter.  Amedisys and Gentiva were down slightly, which was probably to be expected as they closed or sold a number of under-performing branches.

Replays of the earnings reports are available on the individual company websites, certainly interesting comments. Almost Family discussed in detail the changes that took place in 2011, and their outlook for future reimbursement.

Their computation takes into account, not only an increase in the market basket update and a downward adjustment of the case mix creep, but also the effect of reduced payments for high therapy episodes, the removal of two hypertension codes, re-calibrated case-mix weights, and a case-mix adjustment shifted to 2013.

The end result is an estimate that they feel the end result to them will be a 4.5% to 5.0% reduction in Medicare reimbursement in 2012.

Of course each agency’s numbers will differ somewhat.  Different numbers….different results, and, in speaking with knowledgeable owners and executives around the country, we have heard a wide range of estimates for 2012…..all of them were down.

Headline Dallas and perhaps the most important story of the monthA Dallas physician, the office manager of his medical practice, and five owners of home health agencies were arrested on charges related to their alleged participation in a nearly $375 million health care fraud scheme involving fraudulent claims for home health service.

CMS also announced the suspension of an additional 78 home health agencies associated with the Dallas physician based on credible allegations of fraud against them.   (Does anyone know who those 78 agencies are?  If so please let us know).

MERGER & ACQUISITION ACTIVITY

There as been very little in the way of public announcements regarding M&A.  The market appears to be a little muddied as Buyers may factor in future decreases in Medicare reimbursement, while Sellers want 2009 prices.

Susan Moyer, a partner in our office, completed that sale of a nice New Mexico non-Medicare agency.  Congratulations Susan.

Bayada Home Health Care acquired and transitioned 16 Nursefinders Home Care agencies, part of an AMD Health Care Company at the beginning of the month.

We recently attended (and sponsored) NAHC’s private duty conference in Las Vegas and had the opportunity to speak with Peter Sosnow of SeniorBridge to discuss the recent sale of their company to Humana.  He states that this is a “done-deal” only waiting for regulatory approvals (New York) for finalization. Perhaps June.

On another interesting front Arkansas based Aseracare Home Care & Hospice has completely pulled out of Florida, closing down all of their locations.

LaFayette, LA:  One of the more interesting announcements among our public companies this past month came from the LHC Group….the following as reported by the Associated Press:

“LHC Group said that they were in the process of a review that would involve an exploration and evaluation of a range of strategic alternatives to enhance stockholder value.

It did not detail what those options might be — and did not set a timetable for when the review might be finished.  Generally, when a company undertakes such a review, options include share buybacks, a share dividend or sale of the company.”

One has to wonder if a sale of the company is in the works, kind of a reverse IPO…..more like an FPS (Final Public Sale).  Increased regulations, Sarbanes-Oxley?  Get me out of here.  Perhaps the decrease in IPOs has to do with these very issues.

Visit Us: 

March 14-16 in Chicago at the Illinois HomeCare & Hospice annual conference, where we will be giving a presentation on increasing the value of a home health agency.

April 23-24 in Chicago for Decision Health’s M&A Home Health Conference.  There will be two full days of presentations by the industry leaders.  This is always a great conference and a must if you are considering a sale of your agency.

https://www.decisionhealth.com/homehealthmergers/index.html

UPDATE: February, 2012 Results

For the month of February, the S&P 500 was up 4.1% while the Home Health Index was up 17.0%.

Percentage change in stock prices for these public companies for the month of February and Year to Date (YTD) follows:

Company February YTD
Almost Family +21.4% +21.4%
Amedisys +23.4% +17.8%
Gentiva +8.1% +16.3%
LHC Group +15.0% +32.7%
Home Health Index +17.0% +28.7%
S&P 500 +4.1% +8.6%

Multiples of EBITDA based upon the earnings results for the year 2011with the stock prices as of February 29, 2012.

Company Multiple of EBITDA
Almost Family 5.6
Amedisys 2.4
Gentiva 1.2

 

Quote: “In the long term, we believe it will ultimately prove economically impossible for our nation to meet its commitment to provide health care for our elderly without a strong and vibrant home health industry.”  William Yarmouth, CEO Almost Family


 

And the next time you take a cruise ladies….pack a pair of these:

Stoneridge Partners | Home Health Index March 2012

Previous favorite cartoon

Stoneridge Partners | Home Health Index March 2012

US Debt:

As a final note we would like to point out that our national debt is now running more than 100% of our GDP, which puts us in the company of Greece, Italy, Ireland and Portugal…we’re all over 100% of GDP.  The only difference being that we print money, they can’t.  By way of comparison, Australia is at 27%.

Stoneridge Partners | Home Health Index March 2012


Stoneridge Partners | Home Health Index April 2012: This Home Health Index (HH Index) measures the performance of four publicly traded home health companies,
all listed on the NASDAQ — Almost Family (AFAM), LHC Group (LHCG), Gentiva (GTIV) and Amedisys (AMED).  This index is updated monthly. If you would like to receive a monthly e-mail of this update,  please e-mail us your name and e-mail address to [email protected]

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Stoneridge Partners | Home Health Index February 2012: What a nice start to the year.  The S&P 500, after being flat in 2011,  charged ahead over 4% in January alone.  Even better, our Home Health Index (HH Index) more than doubled that, up 9.2% in January. We had a hint of this positive development last month when, after nine straight months of decline, the HH Index for the month of December ended up plus 1%.  Now, after two months, our index is up over 10%…. a very nice change.  (Please note: Graphs from 2012 are no longer available, but the data can still be seen in the recent issues of the Home Health Index.)

Could it be that most of the bad news has been factored in by the investment community?

The only company not showing an increase was Amedisys, down 3.7%.  Results for January are as follows:

Almost Family, up 13.6%, this on top of a 10.7% increase in December.

Amedisys, down 3.7%
Gentiva, up 7.6%
LHC Group, up a nice 15.3%
Home Health Index, up 9.26%

The high for our HH Index was set in September, 2008 at 41.75, so we have quite a way to go….but perhaps we’re on the way. We also note that Addus HealthCare’s stock closed out the month at $3.65/share, up 2.2%.  They are a public company (NASDAQ:ADUS) but not in our HH Index.

In January all four of these public companies presented at the JP Morgan Global Health Care Conference in San Francisco. Replays of those presentations are available on their individual company web sites. Certainly worth listening to.

Almost Family discussed in detail the changes that took place in 2011, and their outlook for future reimbursement. They are estimating a 5% to 5.5% rate cut in Medicare reimbursement for their company in 2012 with a 4th quarter 2011 phase in. Their computation takes into account, not only an increase in the market basket update and a downward adjustment of the case mix creep, but also the effect of reduced payments for high therapy episodes, the removal of two hypertension codes, re-calibrated case-mix weights, and a case-mix adjustment shifted to 2013.

The end result is an estimate that they feel the end result to them will be a 5% to 5.5% Medicare rate cut in 2012, and this is certainly one of the numbers that stock market investors will be hearing.

Of course each agency’s numbers will differ somewhat. Different numbers; different results. And, in speaking with knowledgeable owners and executives around the country, we have heard a wide range of estimates for 2012…..however all of them were down.

The next expected news from these companies will be their earnings reports for 2011.  It looks like first up to bat will be Gentiva, with their announcement set for February 7 at 9 am ET.

Amedisys has also announced their earnings report will take place on February 28 at 10 am ET. Details of these up-coming calls are on their web pages.  Always interesting listening.

MERGER & ACQUISITION ACTIVITY

  • Effective Jan. 1, 2012, Knoxville-based Caris Healthcare completed the purchase of Solaris Hospice, a South Carolina provider of outpatient hospice services.
  • On January 30, Bayada Home Health Care, based in NJ, announced that they have acquired 16 Nursefinders Home Care agencies, part of an AMD Health Care Company.
  • Fulcrum Equity Partners funded the $3.2 million acquisition of AAA Home Health, Inc. by Partners Healthcare Group, LLC (“PHG”).  PHG will serve as the platform to build a home health and hospice company throughout the Southeast.  We provided sell-side representation through Cory Mertz, one of our partners.
  • Merger Announced in New Hampshire:  Visiting Nurse & Hospice Care Services merged with Carroll County Health and Home Care Service to form Visiting Nurse Home Care & Hospice of Carroll County.
  • We note that SouthernCare has recently appeared as a portfolio company on the web site of Kohlberg & Company.  If you will recall, SouthernCare settled a “whistle blower” fraud charge for $24.7M back in 2009.

In January we attended NAHC’s private duty conference in Las Vegas and had the opportunity to speak with Peter Sosnow of SeniorBridge to discuss the recent sale of their company to Humana.  He states that this is a “done-deal” only waiting for regulatory approvals for finalization. We feel that this is one of the more interesting of recent acquisitions, esp. in non-Medicare.

On another interesting front it appears that Arkansas based Aseracare Home Care & Hospice has completely pulled out of Florida, closing down all of their locations.

VISIT US AT HOME CARE 100:  From February 4 – 7 we will be in Orlando, again attending this premier event, where we will be meeting with many of the top industry leaders discussing among other things their acquisition strategies. www.homecare100.com

We have also been invited and will participate in NAHC’s 2012 Home Care & Hospice Strategic Planning Congress, which is being held on February 3rd, just prior to Home Care 100, and at the same Orlando location.

UPDATE: January, 2012 Results

For the month of January, the S&P 500 was up 4.4% while the Home Health Index was up 9.2%. What a nice change.

Percentage change in stock prices for these public companies for the month of January and Year to Date (YTD) follows:

Company December YTD
Almost Family +13.6% +13.6%
Amedisys -3.8% -3.8%
Gentiva +7.6% +7.6%
LHC Group +15.3% +15.3%
Home Health Index +9.2% +9.2%
S&P 500 +4.4% +4.4%

Multiples of EBITDA based upon the earnings results for the annualized 9 months earnings ended Sept. 30, 2011, with the stock prices as of January 31, 2012.

Company Multiple of EBITDA
Almost Family 4.8
Amedisys 2.3
Gentiva 1.1

Stoneridge Partners | Home Health Index February 2012 – Cartoon of the month

 

Stoneridge Partners | Home Health Index February 2012

 

Previous Favorite Cartoon:

 

Stoneridge Partners | Home Health Index February 2012

 

Quote of the Week: “In the long term, we believe it will ultimately prove economically impossible for our nation to meet its commitment to provide health care for our elderly without a strong and vibrant home health industry.”  William Yarmouth, CEO Almost Family


Stoneridge Partners | Home Health Index February 2012: This Home Health Index (HH Index) measures the performance of four publicly traded home health companies,
all listed on the NASDAQ — Almost Family (AFAM), LHC Group (LHCG), Gentiva (GTIV) and Amedisys (AMED).  This index is updated monthly. If you would like to receive a monthly e-mail of this update, please e-mail us your name and e-mail address to [email protected]

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