Managed Care Shift Will Halve Home Health Revenues for Amedisys from Humana

Home health and hospice care provider Amedisys, Inc. (NASDAQ:AMED) will see a diminished annual revenue after signing a new agreement with Humana Inc. (NYSE:HUM) regarding how it will be reimbursed for home health services provided.

Under the new agreement, which reflects a national shift toward managed care, Amedisys will be paid on a per-visit basis. Previously, Humana reimbursed the company on an episodic basis. 

The agreement is national ins cope but will not extend to all markets served under the former agreement, the companies note. 

Amedisys has earned approximately $65 to $70 million in revenue from Humana on an annualized basis, and the company anticipates the new agreement will generate revenue levels of approximately half this amount, it said in a statement. 

Revenue will be impacted beginning in the fourth quarter of 2012, but the full impact won’t occur until 2013.

“We are pleased to continue our relationship with Humana by delivering high-quality care for its members,” said William F. Borne, CEO of Amedisys. “This agreement demonstrates our commitment to caring for patients whose health care is covered by managed care organizations.”

Written by Alyssa Gerace

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