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With its acquisition by Optum pending, Amedisys (NASDAQ: AMED) is seeing quarterly and yearly gains.
Optum, a subsidiary of UnitedHealth Group (NYSE: UHN), in June 2023 penned its agreement to acquire Amedisys in an all-cash transaction of $101 per share, or about $3.3 billion. The transaction is expected to close this year, following customary diligence and approvals.
“We are excited about this opportunity with Optum – it’s a win for everyone, especially patients who need our services,” Amedisys CEO Richard Ashworth said in a June 2023 video sent to employees, according to a transcript. “Combining our home health, hospice, palliative, and high-acuity care services with Optum’s value-based care experience and resources will accelerate Amedisys and Optum’s shared mission to serve more patients and improve outcomes and patient experiences at lower costs.”
During the fourth quarter of 2023, Amedisys’ net service revenue rose to $570.8 million, compared to $562 million in the same period of the prior year. For the full year, the company brought in nearly $2.24 billion, up from $2.22 billion in 2022. The 2022 numbers include $61.4 million from Amedisys’ personal care segment, which the company divested in March 2023.
The Amedisys hospice segment saw revenue rise to $194.2 million in Q4, up from $186.3 million in the fourth quarter of 2022. Its high-acuity and palliative care segment, Contessa, saw an operating loss of $5.9 million in Q4, an improvement from $6.6 million in 2022.
“While hospice performance has lagged over the past two years, AMED posted flat [same-store average daily census] growth and 4% [same-store] revenue growth in the [third quarter], which in our view are potentially positive indicators of segment inflection as we look to FY2024,” Brian Tanquilut, equity analyst for the investment banking firm Jefferies Financial Group, indicated in a research note.
