Amedisys, Inc. (NASDAQ: AMED), provider of home health and hospice care, suffered a 65.8% decline in earnings per share (EPS), during the second quarter of 2012 due to large cuts in Medicare reimbursements and the implementation of Medicare’s face-to-face law, according the company’s second quarter financial report. Despite decline to an EPS of 27 cents, the company remained 2 cents ahead of the Zacks Investment Research Consensus Estimate for the quarter.
Significant reductions in Medicare reimbursements over the past year have contributed to reduced business activity for Amedisys and the newly enforced face-to-face billing requirement has added increased pressures and program costs for the company, according to the report.
Amedisys finished the quarter down $48 million from the end of fiscal year 2011 with cash and cash equivalents of $37.2 million.
While Amedisys’ EPS is on a decline, the company’s net revenue for the quarter is $378.5 million, up 2.7% from last year.
Written by Erin Hegarty