Amedisys: Caught Between a RAC and a Hard Place


Citron first reported on Amedisys over a year ago.  Never before have we received as much correspondence from former employees as we did after this story.  Last month, the market witnessed the abrupt resignations of two key executives from Amedisys.  In this post, Citron will shed some light on the “story behind the story” of Amedisys — a story that neither management nor its analysts want to talk about.

Amedisys business is providing home health care visits – nurses, hospice workers and therapists – on an outpatient basis.  An overwhelming amount of Amedisys’s revenues, in fact 87%, is paid directly by  Medicare reimbursement.  Under the best of circumstances, this concentration of business would be a significant risk factor.  However, for Amedisys, which operates with some of the highest gross and net margins in the business, red flags specific to the company are much more ominous. Read more