Amedisys Discloses $8 Million Settlement, Posts Strong Results
Amedisys Inc. (NASDAQ: AMED) is enjoying net service revenue and net income growth, second quarter financial results announced today show. While the major home health and hospice provider’s results were impacted by a federal class-action lawsuit involving overtime payments, the $8 million settlement did not derail earnings.
Amedisys had a net service revenue of $314.1 million in the three-month period ending June 30 compared to $305 million in 2014. The company’s net income from continuing operations was $14.5 million during that same period compared to net income from continuing operations of $8 million in 2014.
“We made progress toward implementing our key strategies – delivering clinical excellence, empowering our people, improving operational efficiency and accelerating growth,” said President and Chief Executive Officer Paul B. Kusserow, in a press release.
Also this week, the company reached an $8 million settlement to put to rest a federal class-action lawsuit, Kusserow said during a conference call with analysts Wednesday. The sum is to be paid later this year.
That lawsuit was filed in Connecticut and involved “former and current employees claim[ing] the company violated federal law by refusing to pay overtime to home health workers,” The Advocate reported recently.
Also in the second quarter, the company ramped up its merger and acquisition activity. It evaluated more than 150 deals, compared with 17 in the first quarter, Kusserow said on the earnings call. The company recently reached a definitive agreement to add five new counties to expand its home health license in its “key” Georgia market, he said. Amedisys is not disclosing the terms of that deal.
Kusserow also touted Amedisys’ performance in the recently unveiled star ratings from the Centers for Medicare & Medicaid Services. More than 90% of Amedisys providers will earn at least three stars, compared with 70% of providers nationally, he said.
Amedisys has been based in Baton Rouge, La. since its founding in 1982, and recently moved key members of its executive team to Nashville. The move is an effort to forge deeper connections with major health care players and potentially expand into new areas, including private duty services, Kusserow previously told HHCN.
Written by Cassandra Dowell