As Mediation Nears, Amedisys Delivers Strong Q2, Charts Impact From Proposed CMS Payment Cut

Amid the ongoing UnitedHealth Group (NYSE: UNH) acquisition saga, Amedisys Inc. (Nasdaq: AMED) is seeing continued growth in its home health segment.

On Wednesday, Amedisys unveiled its second-quarter 2025 financial results and forecasted the impact it expects if the proposed home health Medicare payment rule is finalized. The company opted out of hosting an accompanying conference call.

Amedisys’ service lines include home health, hospice, and palliative care services. The company delivers care across 38 states and Washington D.C., employs 19,000 people and provides care to more than 499,000 patients annually. It owns and operates 347 Medicare-certified home health care centers.

In Q2, Amedisys’ home health segment reported net service revenues of $396.2 million, an increase from $377.4 million in the same quarter in 2024.

Amedisys saw an overall revenue increase. The company had net service revenues of $621.9 million for the second quarter, compared to $591.2 million in 2024.

In the company’s SEC Form 10-Q filing, Amedisys also addressed the 2026 home health proposed payment rule. Last month, the U.S. Centers for Medicare & Medicaid Services (CMS) released its annual proposal, which included a 6.4% aggregate cut to home health payments.

“Based on our analysis of the proposed rule, we expect our impact to be in line with the 6.4% decrease,” the company wrote. “Amedisys is partnering with our industry advocates, lobbying firms and others to share comments with CMS on the proposed rule.”

Despite the strong performance in the quarter, the UnitedHealth Group lawsuit still hangs over the company.

“We maintain our hold on AMED as the company continues to await the outcome of the lawsuit filed by the DOJ seeking to block its sale to UNH,” Jefferies wrote in an analyst note. “We view the divestiture package as positive and believe [BrightSpring Health Services (Nasdaq: BTSG) and Pennant Group (Nasdaq: PNTG)] are two viable buyers that should satisfy the DOJ.” 

In 2023, UnitedHealth Group made a $3.3 billion all-cash offer to purchase Amedisys. The following year, the DOJ sued to stop the deal from taking place. The DOJ claimed that the acquisition would detrimentally affect patients, payers and home health workers.

In May, Amedisys inked deals to divest its home health and hospice care centers to affiliates of Pennant and BrightSpring.

On Aug. 18, the DOJ, Amedisys and UnitedHealth Group will go into mediation.

As recently as last month, UnitedHealth Group expressed confidence in the deal in a document leaked to STAT.

“We remain optimistic that we will complete our proposed merger with Amedisys,” the document read. “Amedisys’ commitment to quality and care innovation within the home, and the patient-first culture of its people combined with Optum’s deep value-based care expertise, can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth for both organizations.”

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