Amedisys Reports Hospice Revenue Growth

Amedisys Inc. (NASDAQ: AMED) has seen gains in its hospice segment as it waits for closure on its pending acquisition by Optum.

The company’s hospice segment brought in $201 million in the first quarter of the year, up from $193.4 million year over year. Cost per day rose 2.3% during the quarter, however, largely due to wage inflation, according to an earnings release.

Optum, a subsidiary of UnitedHealth Group (NYSE: UHN), last June penned its agreement to acquire Amedisys in an all-cash transaction of $101 per share, or about $3.3 billion. 


“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 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.”

The Amedisys deal is among a slew of large acquisitions by Optum, which include the home health and hospice provider LHC Group and the health care tech company Change Healthcare. Optum closed its $5.4 billion acquisition of LHC Group in February 2023.

Earlier this year, the U.S. Department of Justice indicated that it would investigate UnitedHealth Group’s recent transactions due to potential antitrust concerns. The DOJ performed a similar investigation — and filed a lawsuit — when Optum acquired the health care technology company Change Healthcare last year. A federal court eventually allowed that deal to proceed.


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