Amedisys announces plans to close, consolidate agencies

Amedisys says it will close and consolidate 39 home health and hospice agencies and cut back on startup offices. The company did not detail whether the moves will result in any layoffs or say which agencies would be affected. Mark Snow, Amedisys COO, said in a statement the restructuring is a result of the company’s growth over the past few years. “This is a continuous process to enhance our infrastructure and adjust our operating culture to position Amedisys for the next phase of growth,” Snow said. Amedisys has been aggressive in buying up home health and hospice agencies. Plans are to close 13 agencies, with nine home health and four hospice operations shuttering; twenty-six locations will be consolidated into existing operations. This will affect 23 home health and three hospice operations. Amedisys is also discontinuing the startup of 28 prospective home health agencies. The company says these moves will lead to non-recurring charges in the range of $6 million to $8 million in the third quarter and $1 million in the fourth quarter. About $4 million to $5 million will come from lease terminations, and $3 million to $4 million in severance payments. Shares of Amedisys were down about 70 cents, or 2.5%, in mid-morning trading, going for $28.54. The company is being investigated by the SEC and the U.S. Senate on allegations that it and other home health companies, including Lafayette’s LHC Group, deliberately boosted the number of home therapy visits in order to elicit higher Medicare reimbursements.