Amedisys, Inc. has released its 10-K report, detailing its business operations and financial performance. The company provides healthcare services in the United States through four segments: Home Health, Hospice, Personal Care, and High Acuity Care. As of December 31, 2023, Amedisys owned and operated 346 Medicare-certified home health care centers, 165 Medicare-certified hospice care centers, and 10 admitting high acuity care joint ventures in 37 states within the United States and the District of Columbia.
In 2023, approximately 73% of Amedisys' consolidated net service revenue was derived from Medicare, compared to 74% in 2022 and 75% in 2021. The company divested its personal care business on March 31, 2023. Amedisys entered into an Agreement and Plan of Merger with UnitedHealth Group Incorporated and Aurora Holdings Merger Sub Inc. on June 26, 2023. The proposed merger is subject to various conditions, and there can be no assurance that it will be successfully completed.
In terms of leadership, Richard Ashworth was named the President and Chief Executive Officer of the company, effective April 10, 2023. Amedisys also sold its personal care business, excluding the Florida operations, and received net proceeds of $47.8 million while recognizing a loss of $2.2 million in connection with the divestiture.
Financially, Amedisys reported that its operating income decreased by $24 million on a $13 million increase in net service revenue. The company also highlighted that it maintained the highest Quality of Patient Care star rating in the home health industry and outperformed the industry on all Hospice Item Set measures in 2023.
The company's home health segment was positively impacted by total volume growth and an increase in non-Medicare revenue per visit, while its hospice segment experienced a decline in average daily census. Amedisys reported that its segments operate in a highly competitive industry and face reimbursement pressures, particularly in states that require a certificate of need, permit of approval, or facility needs review. Additionally, the company highlighted the impact of inflation on labor costs and other expenses in the healthcare industry.
Regarding CMS payment updates, Amedisys expects a 3.1% increase in payments for hospice services and an 0.8% increase in payments for home health providers for the respective fiscal years 2024.
In summary, Amedisys, Inc.'s 10-K report provides insights into its business operations, financial performance, and industry challenges, as well as its proposed merger with UnitedHealth Group Incorporated and the impact of CMS payment updates on its financial outlook. As a result of these announcements, the company's shares have moved 1.0% on the market, and are now trading at a price of $94.5. For more information, read the company's full 10-K submission here.
