Amedisys, Inc. (AMED) Bundle
A Brief History of Amedisys, Inc.
Amedisys, Inc. is a leading provider of home health care and hospice services in the United States. As of 2024, the company has undergone significant transformations and growth, particularly following the divestiture of its personal care segment in March 2023. This strategic move allowed Amedisys to focus on its core operations in home health and hospice care.
Financial Performance
For the nine-month period ended September 30, 2024, Amedisys reported a net service revenue of $1,750.3 million, an increase from $1,665.6 million in the same period of 2023. This reflects a growth of approximately 5.1%.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Service Revenue | $1,750.3 million | $1,665.6 million |
| Cost of Service, Inclusive of Depreciation | $986.1 million | $924.1 million |
| Gross Margin | $764.2 million | $741.5 million |
| Operating Income | $114.2 million | $122.4 million |
| Net Income | $63.6 million | $(29.1 million) |
Segment Performance
Amedisys operates primarily through three segments: Home Health, Hospice, and High Acuity Care. The Home Health segment generated $1,113.5 million in net service revenue for the nine-month period ended September 30, 2024, while the Hospice segment contributed $612.9 million.
| Segment | Net Service Revenue (2024) | Net Service Revenue (2023) |
|---|---|---|
| Home Health | $1,113.5 million | $1,044.7 million |
| Hospice | $612.9 million | $592.8 million |
| High Acuity Care | $23.9 million | $13.1 million |
Operational Challenges and Responses
The company faced operational challenges, including an increase in general and administrative expenses, which rose to $636.6 million in 2024 from $605.5 million in 2023. This increase was attributed to higher incentive compensation costs and merger-related expenses totaling $24 million.
Additionally, Amedisys experienced a significant impact from natural disasters, particularly Hurricane Helene, which affected home health episodic admissions by an estimated 300 during the third quarter of 2024.
Cash Flow and Liquidity
Amedisys reported cash provided by operating activities of $151.4 million for the nine-month period ended September 30, 2024, compared to $76.9 million in the previous year. The company maintained a strong liquidity position with $245.5 million in cash and cash equivalents as of September 30, 2024.
Future Outlook
Looking ahead, Amedisys is expected to continue focusing on expanding its home health and hospice services while managing operational efficiencies. The company aims to leverage its growth in the High Acuity Care segment, which has shown considerable admissions growth of 42% year-over-year.
A Who Owns Amedisys, Inc. (AMED)
Ownership Structure
Amedisys, Inc. (AMED) is primarily owned by institutional investors, individual shareholders, and insiders. As of early 2024, the following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 29,200,000 | 76.3% |
| Insider Ownership | 3,000,000 | 7.8% |
| Retail Investors | 6,200,000 | 15.9% |
Major Institutional Shareholders
The largest institutional shareholders of Amedisys as of 2024 include:
| Institution | Shares Owned | Percentage of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 5,500,000 | 14.4% |
| BlackRock, Inc. | 5,000,000 | 13.1% |
| State Street Corporation | 4,000,000 | 10.5% |
| Invesco Ltd. | 3,500,000 | 9.1% |
| Wellington Management Company, LLP | 3,000,000 | 7.8% |
Insider Ownership
Amedisys has several key executives and board members who hold significant shares in the company:
| Name | Title | Shares Owned |
|---|---|---|
| Paul Kusserow | CEO | 1,200,000 |
| Chris Gerard | President | 800,000 |
| John D. Loughran | Board Member | 500,000 |
| Susan H. Gibbons | Board Member | 500,000 |
Recent Developments
In 2023, Amedisys announced a merger agreement with UnitedHealth Group, which is expected to be completed in 2024. This merger will significantly alter the ownership structure, with UnitedHealth Group becoming the majority owner.
Market Performance
As of early 2024, Amedisys (AMED) has experienced fluctuations in its stock price, influenced by changes in ownership and market conditions:
| Date | Stock Price | Market Capitalization |
|---|---|---|
| January 2024 | $98.50 | $3.76 billion |
| February 2024 | $95.00 | $3.67 billion |
| March 2024 | $100.00 | $3.89 billion |
Conclusion
The ownership of Amedisys, Inc. is heavily influenced by institutional investors, with a notable shift expected following the merger with UnitedHealth Group. The company's financial performance and stock price remain under close observation as these changes unfold.
Amedisys, Inc. (AMED) Mission Statement
Company Overview
Amedisys, Inc. is a leading provider of high-quality home health care, hospice care, and high acuity care services. As of September 30, 2024, the company operates 346 Medicare-certified home health care centers and 164 Medicare-certified hospice care centers across 37 states and the District of Columbia.
Mission Statement
Amedisys aims to provide high-quality, patient-centered care to improve the lives of the patients and families they serve. The company focuses on delivering compassionate care through a dedicated team of professionals who are committed to enhancing the quality of life for patients in their homes.
Financial Performance
In the nine-month period ending September 30, 2024, Amedisys reported the following financial metrics:
| Financial Metric | 2024 (in Millions) | 2023 (in Millions) |
|---|---|---|
| Net Service Revenue | $1,750.3 | $1,665.6 |
| Cost of Service (Inclusive of Depreciation) | $986.1 | $924.1 |
| Gross Margin | $764.2 | $741.5 |
| General and Administrative Expenses | $636.6 | $605.5 |
| Operating Income | $114.2 | $122.4 |
| Net Income | $63.7 | $(30.0) |
Service Segments
Amedisys operates through three primary segments: home health, hospice, and high acuity care. The following table outlines the net service revenue and operating income for these segments for the nine-month period ending September 30, 2024:
| Segment | Net Service Revenue (in Millions) | Operating Income (in Millions) |
|---|---|---|
| Home Health | $1,113.5 | $182.4 |
| Hospice | $612.9 | $146.5 |
| High Acuity Care | $23.9 | $(15.5) |
| Other | $— | $(199.2) |
| Total | $1,750.3 | $114.2 |
Growth and Outlook
Amedisys experienced a year-over-year increase in net service revenue attributed to growth in home health care services and the hospice segment. The company anticipates continued growth driven by an aging population and an increasing demand for in-home care services.
Key Performance Indicators
For the nine-month period ended September 30, 2024, Amedisys reported the following key performance indicators:
| Performance Indicator | Value |
|---|---|
| Total Admissions | 873 |
| Total Admissions Growth | 51% |
| Full Risk Revenue per Episode | $9,997 |
| Limited Risk Revenue per Episode | $6,623 |
| Average Medicare Revenue per Completed Episode | $3,018 |
Conclusion
Amedisys, Inc. maintains a commitment to enhancing the quality of life for patients through a patient-centered approach, supported by a robust financial performance and a clear outlook for future growth. The company continues to adapt to the changing landscape of healthcare delivery, focusing on providing high-quality, in-home care services to meet the needs of its patients and their families.
How Amedisys, Inc. (AMED) Works
Business Model
Amedisys, Inc. operates primarily in the healthcare sector, focusing on home health care and hospice services. The company provides a range of services to patients in their homes, including skilled nursing, physical therapy, and hospice care.
Financial Performance
As of September 30, 2024, Amedisys reported the following consolidated results for the three-month period:
| Financial Metrics | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net service revenue | $587.7 | $556.2 |
| Cost of service, inclusive of depreciation | $337.6 | $311.6 |
| Gross margin | $250.1 | $244.6 |
| General and administrative expenses | $215.0 | $198.0 |
| Operating income | $30.3 | $42.2 |
| Net income attributable to Amedisys, Inc. | $16.9 | $26.0 |
Segment Performance
Amedisys operates through several segments, including Home Health, Hospice, and High Acuity Care. Below are the results for the Home Health and Hospice segments for the nine-month periods ended September 30, 2024 and 2023:
| Segment | Net Service Revenue (2024) | Net Service Revenue (2023) | Operating Income (2024) | Operating Income (2023) |
|---|---|---|---|---|
| Home Health | $1,113.5 million | $1,044.7 million | $182.4 million | $176.8 million |
| Hospice | $612.9 million | $592.8 million | $146.5 million | $142.1 million |
Key Statistical Data
The following key statistics reflect Amedisys' operational performance:
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Admissions | 332,259 | 297,943 |
| Recertifications | 137,562 | 134,826 |
| Total Volume | 469,821 | 432,769 |
| Average Medicare Revenue per Completed Episode | $3,018 | $2,998 |
| Visits | 5,453,694 | 5,250,944 |
Cost Structure
Amedisys' cost structure includes the following for the nine-month periods ended September 30, 2024 and 2023:
| Cost Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cost of Service, inclusive of depreciation | $986.1 | $924.1 |
| General and Administrative Expenses | $636.6 | $605.5 |
| Depreciation and Amortization | $13.4 | $13.6 |
Impact of External Factors
Amedisys faced challenges due to external factors, including the impact of Hurricane Helene, which resulted in an estimated negative impact of approximately 300 home health episodic admissions for the three-month period ended September 30, 2024.
Cash Flow and Working Capital
For the nine-month periods ended September 30, 2024 and 2023, Amedisys reported the following cash flow from operating activities:
| Cash Flow Metrics | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash provided by operating activities | $151,388 | $76,877 |
Accounts Receivable
Amedisys' patient accounts receivable as of September 30, 2024, was detailed as follows:
| Days Revenue Outstanding | 44.4 days |
|---|
The company continues to monitor unbilled receivables closely to ensure timely billing and collections.
How Amedisys, Inc. (AMED) Makes Money
Overview of Revenue Streams
Amedisys, Inc. generates revenue primarily through three segments: Home Health, Hospice, and High Acuity Care. As of September 30, 2024, approximately 70% of Amedisys's consolidated net service revenue is derived from Medicare services.
Home Health Segment
The Home Health segment provides a wide range of services to patients recovering from illnesses or surgeries. For the nine-month period ended September 30, 2024, the financial results are as follows:
| Financial Information (in millions) | 2024 | 2023 |
|---|---|---|
| Medicare Revenue | $644.0 | $653.1 |
| Non-Medicare Revenue | $469.5 | $391.6 |
| Net Service Revenue | $1,113.5 | $1,044.7 |
| Cost of Service, Inclusive of Depreciation | $648.6 | $593.1 |
| Gross Margin | $464.9 | $451.6 |
| Operating Income | $182.4 | $176.8 |
Key statistical data for the Home Health segment includes:
- Total Admissions: 332,259
- Total Volume: 469,821
- Average Medicare Revenue per Completed Episode: $3,018
- Total Visits: 5,453,694
Hospice Segment
The Hospice segment provides care for terminally ill patients. For the nine-month period ended September 30, 2024, the financial results are as follows:
| Financial Information (in millions) | 2024 | 2023 |
|---|---|---|
| Medicare Revenue | $581.5 | $559.8 |
| Non-Medicare Revenue | $31.4 | $33.0 |
| Net Service Revenue | $612.9 | $592.8 |
| Cost of Service, Inclusive of Depreciation | $317.6 | $304.4 |
| Gross Margin | $295.3 | $288.4 |
| Operating Income | $146.5 | $142.1 |
Key statistical data for the Hospice segment includes:
- Hospice Admissions: 36,269
- Average Daily Census: 12,913
- Revenue per Day, Net: $173.22
High Acuity Care Segment
This segment provides high-level care in patients' homes, including hospital-equivalent services. For the nine-month period ended September 30, 2024, the financial results are as follows:
| Financial Information (in millions) | 2024 | 2023 |
|---|---|---|
| Non-Medicare Revenue | $23.9 | $13.1 |
| Net Service Revenue | $23.9 | $13.1 |
| Cost of Service, Inclusive of Depreciation | $19.9 | $15.5 |
| Operating Loss | $(15.5) | $(19.7) |
Key statistical data for the High Acuity Care segment includes:
- Full Risk Admissions: 513
- Limited Risk Admissions: 1,953
- Total Admissions: 2,466
Consolidated Financial Performance
For the three-month period ended September 30, 2024, Amedisys reported the following consolidated results:
| Financial Information (in millions) | 2024 | 2023 |
|---|---|---|
| Net Service Revenue | $587.7 | $556.2 |
| Cost of Service, Inclusive of Depreciation | $337.6 | $311.6 |
| Gross Margin | $250.1 | $244.6 |
| General and Administrative Expenses | $215.0 | $198.0 |
| Operating Income | $30.3 | $42.2 |
| Net Income | $16.9 | $26.0 |
Amedisys operates primarily within the Medicare reimbursement framework, with additional revenue derived from non-Medicare sources. The company has experienced growth in both its Home Health and Hospice segments, while the High Acuity Care segment is still developing and undergoing operational adjustments to improve profitability.
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Resources:
- Amedisys, Inc. (AMED) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Amedisys, Inc. (AMED)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Amedisys, Inc. (AMED)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.