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.
“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