Amedisys, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, a multi-state provider of home health, hospice, and high acuity care services, achieved net service revenue of $587.7 million for the three-month period, an increase from $556.2 million in the same period of 2023. For the nine-month period, net service revenue rose to $1.75 billion, compared to $1.67 billion in the prior year.

Despite the revenue growth, Amedisys experienced a decline in profitability. Operating income for the third quarter decreased to $30.3 million from $42.2 million year-over-year, attributed to increased operating expenses, including $16.7 million in merger-related costs. Net income for the quarter was $16.5 million, down from $25.6 million in 2023. For the nine-month period, net income was $63.7 million, a recovery from a net loss of $30.0 million in the same period last year.

The company’s total operating expenses for the third quarter were $557.3 million, up from $514.0 million in 2023, driven by wage inflation, planned wage increases, and higher health insurance costs. The hospice segment reported net service revenue of $207.9 million, an increase from $200.2 million, while the home health segment generated $372.1 million, up from $351.6 million.

Amedisys continues to navigate strategic changes, including a merger agreement with UnitedHealth Group, which was approved by stockholders in September 2023. Under the agreement, Amedisys will become a wholly owned subsidiary of UnitedHealth Group, with each share converting to $101 in cash. The merger is subject to regulatory review and other conditions.

The company also divested its personal care business on March 31, 2023, which has impacted its revenue streams. As of September 30, 2024, Amedisys operated 346 Medicare-certified home health care centers and 164 Medicare-certified hospice care centers across 37 states and the District of Columbia.

Financially, Amedisys reported cash and cash equivalents of $245.5 million as of September 30, 2024, a significant increase from $126.5 million at the end of 2023. The company’s total assets rose to $2.14 billion, while total stockholders’ equity increased to $1.15 billion. The company is in compliance with its financial covenants and has no outstanding borrowings under its revolving credit facility.

Overall, Amedisys's performance reflects a complex landscape of growth in revenue alongside challenges in profitability and strategic transitions, including the ongoing merger with UnitedHealth Group and the impact of inflation on operational costs.