Amedisys, Inc. AMED recently signed an agreement to purchase regulatory assets that will enable the company to conduct home health care operations in Randolph County, North Carolina. In particular, the transaction is expected to close on April 30, 2021.
For investors, Amedisys is a healthcare company that offers personalized home health, hospice, and personal care. It focuses on providing the best possible care for patients.
The latest development should strengthen Amedisys’ home care offering.
More on the news
Under the terms of the agreement, Amedisys will acquire the right to provide certified home health services in and around Randolph County, North Carolina within 50 miles, including Montgomery County.
In particular, the service area will help attendees gain access to 31,000 Medicare and Medicare Advantage. After the agreement is concluded, Amedisys will care for patients in the newly acquired service area by opening a start-up care center.
Importance of the deal
Amedisys is the second largest home health care provider with 320 locations in 34 US states. Pro Management’s expansion of its presence in the home health market will strengthen Amedisys’ home health offering and establish the company as America’s solution to aging.
Developments in the home health sector
Per earnings release in the fourth quarter of 2020, home health revenue increased $ 13 million, or 4%, year over year, driven by strong 5% overall volume growth in the same business and a 6% growth in approvals.
In addition, the company’s home health business scored patient care quality with a Star QPC of 4.33 and had 95% of care centers rated four stars and 65% of care centers rated greater than 4.5 stars.
The home health industry is facing tremendous growth over the long term, fueled by the aging US population, patient desire for independence, and home health as the appropriate treatment option.
According to a report by Grand View Research, the global home healthcare market size was estimated at $ 281.8 billion in 2019 and is expected to grow at an annual rate of 7.9% through 2027.
The story goes on
Amedisys’ efforts to expand its home health care offering are well timed given the market growth.
Value for money
The company’s shares are up 29.5% in a year, compared to an industry growth of 21.5%.
Zack’s rank and key picks
Amedisys currently has a Zacks Rank 3 (Hold).
Some better-ranked stocks from the broader medical field include Asensus Surgical, Inc. ASXC, Cantel Medical Corp. CMD and Conformer, Inc. CFMS each with one zack rank 2 (buy). You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks can be found here.
Asensus Surgical has a projected long-term earnings growth rate of 71%.
Cantel Medical has an estimated long-term earnings growth rate of 19%.
ConforMIS has a projected long-term earnings growth rate of 42%.
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