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Home ยป Pennant sold Amedisys from UnitedHealth Agencies
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Pennant sold Amedisys from UnitedHealth Agencies

adminBy adminAugust 8, 2025No Comments4 Mins Read
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Pennant Group (NASDAQ: PTNG) plans to create a “center of strength” in the southeast by acquiring home hygiene and hospice institutions sold by Amedisys (NASDAQ: AMED) and UnitedHealth Group (UHG) (NYSE: UNH).

The acquisition, which includes 38-50 agents, costs between $113 million and $147 million, according to the company's second-quarter revenue call. In May, Amedisys announced that it would sell its home hygiene and hospice care centre to Pennant and Brightspring Health Services (NASDAQ: BTSG) subject to the success of the UnitedHealth's Services Arms Amedisys and Optum.

The settlement proposed by the US Department of Justice (DOJ) cleared the path to completion of the merger.

Gerisori said the company views it as a “persuasive deal” that draws into “an attractive market.”

“We are ready to implement this expansion as we deepen our leadership bench through our CEO training and clinical leadership training programmes, gain momentum across our business line and have a healthy balance sheet that is fully capable,” Gochnour said.

He also confirmed that he has signed a service agreement to ensure a smooth transition and has been preparing for several months while awaiting the end of the antitrust law. The transaction is expected to close in the fourth quarter of this year.

Pennant is a holding company of a wide cluster of independent, home hygiene, hospice and senior living providers located in 13 states, and is a footprint that is expected to expand through Amedisys-UHG trading.

The company's new presence in Tennessee will likely serve as a hub for future expansion into the southeast.

“We believe the Tennessee market is unique and there is a huge amount of talent in that particular state and the industry in this region, and we are excited to have Alabama and Georgia assets and foothold in those regions,” Gochnour says. “But we are really excited about the size we have in Tennessee and the opportunity to influence that continuum of care, interact with payers and become a resource for that state's community. We are thrilled to put us at the heart of our strength to grow in the Southeast.”

Pennant CEO Brent Guerisoli said talking about the acquisition of assets sold from Amedisys and UHG shows the company's continued potential in home health.

“Home health services are a key component of America's health care strategy,” he said. “Their importance only increases when more older people age to these services, and government leaders look for solutions to reduce the overall health costs of the country. Patients want to receive care at home. Lawmakers want to reduce the deficit and improve health outcomes. Home health is the solution to both problems.” The company reported significant revenue and adjusted EBITDA growth in all major segments in the second quarter.

Pennant cited the strong clinical quality of the Home Health segment as a major reason for its second quarter performance, including above the national average among the Centers for Medicare and Medicaid Services (CMS) star ratings centers and preventable hospitalization indicators.

Despite the challenging reimbursement environment and cost pressure, Pennant's president and chief operating officer John Gotchner said the company's home health revenues rose to $79.2 million, up nearly $17.6 million or 29% compared to the same period last year. Total Home Health Care Entrance increased by 26.1%, Medicare admission increased by 21.6%, and revenue per episode increased by 5.9% over the same quarter in 2024.

Proposed Home Health Payment Rules

The leader also explained that the CMS proposed home health regulations could affect managed care and commercial contracts related to Medicare fees, but hopes to use operational levers to control reimbursement risks.

Gochnour described the CMS' proposal to cut payments to home health care in 2026 by 6.4% as “seriously misguided, based on flawed methodologies and data,” claiming it was inconsistent with the administration's stated goal of reducing deficits and maintaining access to care.

He observed that these cuts significantly restrict home health access for vulnerable patients, especially in rural areas where institutions are already facing financial difficulties. He said the cuts would reduce the competitiveness of home healthcare in recruiting and retaining staff, leading to an overall increase in healthcare costs.

“Whatever the outcome of the 2026 final rules, our strong growth, diversified revenue streams and a transparent sales model have helped us to thrive consistently through the turmoil,” he said. “Our local team has already begun preparing an operational plan to tailor the business to the impact of the proposed rules.”

The company reported that it adjusted its EBITDA of $16.4 million for the second quarter, an increase of $229.5 million, or more than $50.8 million or 30%. The company also raised annual guidance based on business momentum and currently forecasts full-year revenue for 2025, ranging from $852.8 million to $887.6 million.



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