Amedisys Going After 2,000 Home Health Targets in Mom-and-Pop Lan


Similar to its peers, Amedisys Inc. (Nasdaq: AMED) is biding its time until it ramps up on M&A activity and goes after the droves of mom-and-pop agencies likely to struggle with the perfect storm of industry-shaping regulatory changes looming in the not-so-distant future. 

And in some ways, the Baton Rouge, Louisiana-based home health, personal care and hospice giant is like a kid counting down the days until Christmas to open its presents. In fact, the company even has a wish list of home health targets, according to CEO and President Paul Kusserow.

“We’re going after 2,000 targets,” Kusserow said Thursday at the National Investment Center for Seniors Housing & Care (NIC) fall conference in Chicago. “There will be a land rush on these mom-and-pops.” 


The Patient-Driven Groupings Model (PDGM), a potential phase out of Requests for Anticipated Payments (RAPs) and changes to rural add-on payments are among the key drivers of that land rush, which is likely to kick off in earnest within the first few months of 2020. Depending on how PDGM ultimately looks and what happens with RAPS, some home health agencies could see cash flow losses as high as 26% moving from December to January — and up to 43% from January to February.

The most recently proposed version of PDGM includes assumption-based behavioral adjustments that could pose a more than 8% Medicare payment cuts to agencies next year.

Meanwhile, the Centers for Medicare & Medicaid Services (CMS) is trying to get rid of RAPs — or home health pre-payments — because of fraud concerns. Currently, many small home health businesses depend on RAPs to pay their employees and keep the lights on while waiting on full episodic reimbursement from CMS.

“CMS is going … after elements of the home business to change it, moving fundamentally from a per-visit type of reimbursement to a [value-based] reimbursement,” Kusserow said. “The effects of some of the things [CMS is] going to do are extraordinary, in the sense that it will push a lot of mom-and-pop home health agencies out of business.”

“If you want to go for it, you can do [deals] on the cheap probably in February or March of next year,” he added.

8 views

Contact Information

 

The Baton Rouge Weekly Press,

P.O. Box 74485

Baton Rouge, La. 70874

Phone:  (225) 775-2002

Email:  brweeklypress@yahoo.com

Submit Your

News Releases

 brweeklypress@yahoo.com

Join Our Mailing List

Never miss an update

The Baton Rouge Weekly Press

 

Over 40 years of Excellent Service The Baton Rouge Weekly Press is considered to be the number one minority newspaper in The Greater Baton Rouge area and has served the public for over 40 years. The Weekly Press is distributed every week with a total circulation of 60,000 and has over 450 distribution points which include

State and Local Government buildings, Banks, Churches, Louisiana State University, Southern University, schools, and libraries in the East Baton Rouge Parish.

READ MORE

  • Facebook - Grey Circle
  • Twitter - Grey Circle
  • YouTube - Grey Circle
  • Pinterest - Grey Circle
  • Instagram - Grey Circle

BRWEEKLYPRESS.COM

HOME        ABOUT US        CURRENT ISSUE        NEWS        TV/RADIO        ADVERTISE       SUBSCRIBE       CONTACT

© 2020 by Baton Rouge Weekly Press LLC