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Amedisys' (AMED) New Tie Up to Boost At-Home Patient Care
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Amedisys, Inc. (AMED - Free Report) recently announced that its high-acuity care segment, Contessa, has entered into a new partnership with Memorial Hermann Health System. The latest tie-up is aimed at delivering home-based medical, rehabilitation and palliative care to the latter’s patients.
It is worth mentioning that Contessa’s hospital care at home model is proven to significantly reduce readmission rates, decrease length of stay at hospitals and achieve high patient satisfaction rate. This collaboration is expected to enable Memorial Hermann to deliver acute hospital care, post-hospitalization skilled nursing care and palliative care to patients from the comfort of their own homes rather than only the traditional brick-and-mortar inpatient or rehabilitation facilities.
The latest tie-up is expected to significantly boost admissions growth opportunities for Amedisys Home Health and Hospice, and solidify its foothold in the niche space.
Rationale Behind the Partnership
Per the agreement, the participating patients who provide their consent and meet the eligibility criteria will be discharged directly from the Emergency Center. They will not be admitted as inpatients and will be transferred home as early as possible, with easy-to-use remote patient-monitoring devices. Once home, the patients will immediately begin receiving both in-person and virtual visits from their care team daily. The care delivery model is expected to enable patients to recover in the familiarity of their own homes while receiving medical care from Memorial Hermann clinicians and providers.
Patients will also be able to choose if they would like to receive rehabilitation care and other medical services at home. Palliative care-at-home will likely provide additional support and assistance to seriously ill patients, along with their families and caregivers.
Amedisys’ management believes that the latest partnership will likely ensure patients’ access to the right care as per requirement, which in turn will aid the company in redefining healthcare. Meanwhile, Memorial Hermann’s management feels that this tie-up will likely provide patients with more convenient choices, thereby putting them at the center of care delivery.
Industry Prospects
Per a report by Grand View Research, the global home healthcare market was valued at $320.6 billion in 2021 and is projected to reach $634.9 billion by 2030 at a CAGR of 7.9%. Factors like a rising elderly population, increased patient preference for value-based healthcare, improved patient outcomes and convenience offered by home healthcare agencies are expected to drive the market.
Given the growing market potential, the new collaboration seems to have been timed well.
Recent Developments
This month, Amedisys' company, Contessa, announced a partnership with Baylor Scott & White Health to create a new model of at-home care for patients. This initiative aims at providing patients with a high-quality continuum of care at home.
In April, Amedisys reported first-quarter 2022 results, wherein it recorded robust uptick in its net service revenues. The top line registered year-over-year growth on robust performances across the Home Health and Hospice segments. Further, improved revenues from the Medicare and Non-Medicare also look promising.
Price Performance
Shares of the company have lost 53.6% in the past year compared with the industry’s 49.9% fall and the S&P 500’s 9.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Amedisys carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Omnicell, Inc. (OMCL - Free Report) and Masimo Corporation (MASI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.
AMN Healthcare has gained 18.7% against the industry’s 50.7% fall in the past year.
Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.
Omnicell has lost 17.9% compared with the industry’s 56.3% fall over the past year.
Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.3% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.
Masimo has lost 43.4% compared with the industry’s 25.9% fall over the past year.
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Amedisys' (AMED) New Tie Up to Boost At-Home Patient Care
Amedisys, Inc. (AMED - Free Report) recently announced that its high-acuity care segment, Contessa, has entered into a new partnership with Memorial Hermann Health System. The latest tie-up is aimed at delivering home-based medical, rehabilitation and palliative care to the latter’s patients.
It is worth mentioning that Contessa’s hospital care at home model is proven to significantly reduce readmission rates, decrease length of stay at hospitals and achieve high patient satisfaction rate. This collaboration is expected to enable Memorial Hermann to deliver acute hospital care, post-hospitalization skilled nursing care and palliative care to patients from the comfort of their own homes rather than only the traditional brick-and-mortar inpatient or rehabilitation facilities.
The latest tie-up is expected to significantly boost admissions growth opportunities for Amedisys Home Health and Hospice, and solidify its foothold in the niche space.
Rationale Behind the Partnership
Per the agreement, the participating patients who provide their consent and meet the eligibility criteria will be discharged directly from the Emergency Center. They will not be admitted as inpatients and will be transferred home as early as possible, with easy-to-use remote patient-monitoring devices. Once home, the patients will immediately begin receiving both in-person and virtual visits from their care team daily. The care delivery model is expected to enable patients to recover in the familiarity of their own homes while receiving medical care from Memorial Hermann clinicians and providers.
Patients will also be able to choose if they would like to receive rehabilitation care and other medical services at home. Palliative care-at-home will likely provide additional support and assistance to seriously ill patients, along with their families and caregivers.
Amedisys’ management believes that the latest partnership will likely ensure patients’ access to the right care as per requirement, which in turn will aid the company in redefining healthcare. Meanwhile, Memorial Hermann’s management feels that this tie-up will likely provide patients with more convenient choices, thereby putting them at the center of care delivery.
Industry Prospects
Per a report by Grand View Research, the global home healthcare market was valued at $320.6 billion in 2021 and is projected to reach $634.9 billion by 2030 at a CAGR of 7.9%. Factors like a rising elderly population, increased patient preference for value-based healthcare, improved patient outcomes and convenience offered by home healthcare agencies are expected to drive the market.
Given the growing market potential, the new collaboration seems to have been timed well.
Recent Developments
This month, Amedisys' company, Contessa, announced a partnership with Baylor Scott & White Health to create a new model of at-home care for patients. This initiative aims at providing patients with a high-quality continuum of care at home.
In April, Amedisys reported first-quarter 2022 results, wherein it recorded robust uptick in its net service revenues. The top line registered year-over-year growth on robust performances across the Home Health and Hospice segments. Further, improved revenues from the Medicare and Non-Medicare also look promising.
Price Performance
Shares of the company have lost 53.6% in the past year compared with the industry’s 49.9% fall and the S&P 500’s 9.5% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Amedisys carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Omnicell, Inc. (OMCL - Free Report) and Masimo Corporation (MASI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 18.7% against the industry’s 50.7% fall in the past year.
Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.
Omnicell has lost 17.9% compared with the industry’s 56.3% fall over the past year.
Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.3% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.
Masimo has lost 43.4% compared with the industry’s 25.9% fall over the past year.