Home Health Companies Had Banner Month in April

Three of the biggest publicly-traded home health companies had a stellar showing last month, as their market performance both outpaced the S&P 500 index and achieved a new record high for the month of April, according to the latest Home Health Index from Stoneridge Partners.

The Home Health Index, which tracks the market values of Lafayette, Louisiana-based LHC Group (Nasdaq: LHCG), Louisville, Kentucky-based Almost Family (Nasdaq: AFAM) and Baton Rouge, Louisiana-based Amedisys (Nasdaq: AMED), increased 6.89% in April from the previous month. The increase outpaced the S&P 500, which increased just 1.6% in April.

The Home Health Index level has risen 32.46% year-to-date, and increased 40.38% for the trailing 12-month period.

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“The Home Health Index saw a solid increase in April, in part due to confidence among providers following regulatory delays and pro-business initiatives in Washington,” Stoneridge Partners President and CEO Rich Tinsley said. “The outlook remains strong for home health companies that are considering a sale as part of a succession plan, or simply to take advantage of the strong sellers’ market.”

Addus HomeCare, Inc. (Nasdaq: ADUS), which is not tracked by the Home Health Index because little of its revenue comes from Medicare, saw its stock price increase 5.65% in April.

Amedisys saw the greatest boost of the companies tracked in the Home Health Index, meanwhile, with an 12.23% increase in its share price in April. LHC Group’s share price increase slowed in April to 4.25%, following a major increase of 9.58% in March, while Almost Family’s share price rose 4.09% after experiencing a 4.31% drop in March.

Written by Mary Kate Nelson

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Mary Kate Nelson
Assistant Editor at Aging Media Network

When not in the newsroom, Mary Kate can reliably be found reading on her back porch, marathoning TV shows she’s already seen or overspending at Trader Joe’s.