Amedisys projects drop in profit

Amedisys says its second-quarter earnings will be down from its original projections, partially due to SEC and U.S. Senate investigations into Medicare reimbursements. The company is now forecasting earnings of $1.12 a share, compared with the $1.36 analysts were projecting for the second quarter. In May, the U.S. Senate Finance Committee began looking into allegations that Amedisys and other home health companies, including Lafayette’s LHC Group, deliberately boosted the number of home therapy visits in order to trigger higher Medicare reimbursements. The Senate investigation was spurred by a Wall Street Journal article that questioned if Baton Rouge-based Amedisys, the nation’s largest home health care company, and other companies were taking advantage of a Medicare reimbursement program. Amedisys has said any suggestion the number of therapy visits was changed to receive a higher reimbursement is “both incendiary and inaccurate.” Shares of Amedisys tumbled this morning, down 24%, or nearly $8.50, to come in at about $26.60. In mid-April, before the Journal report, shares were trading at nearly $63.