Jan 04 2008

Buying AMED - Amedisys, Inc.

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  • Ticker: AMED

What Does Amedisys Do?

Amedisys is a multi-state provider of home health and hospice services that has been around for more than 25 years and manages 260 agencies and 14 hospice facilities. 

The Bulls: Baby Boomers Retire, Medicare Reimbursements

As baby boomers retire an increasing demand for senior medical and chronic care arises, along with a demand to have the care in the convenience of your own home.  Medicare reimbursement is stable, and Amedisys is a top dog in its industry with high margins and cash flow and trivial debt.

The Bears: Medicare Reimbursements, No Patent Protection

If the Center for Medicare and Medicaid Services (CMS) changes the way it pays for services, Amedisys could suffer.  Another risk is managing the large number of acquisitions it will be making.  Finally, the company can't protect itself with patents; but must rely on its service, reputation, and management.

Average: 5 (1 vote)
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