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Amedisys Inc.’s profits fell sharply in the 2021 third quarter on higher revenues as COVID-19 hammered the company’s home health and hospice segments.

The second-largest home health firm earned $45.2 million in the quarter ended Sept. 30, a 37.5% decrease compared to net income of $72.4 million in the third quarter of 2020. Net service revenues for the third quarter this year totaled $553.5 million. Last year in the same quarter, revenues totaled $544.1 million.  

“So far it’s been a remarkable year of performance in a tremendously turbulent time,” Paul Kusserow, the chairman and CEO, said in an earnings call on Wednesday.

Home health challenges in the quarter stemming from COVID-19 included a drop in elective procedures and clinicians in quarantine due to the surge in the delta variant. On the hospice side, length of stay fell. Labor costs, including turnover, recruitment expenses, sign-on bonuses and the use of contract employees, also affected the bottom line.

One bright spot for the company is the June acquisition of Contessa Health, a leader in hospital at home and skilled nursing facility at-home services. Kusserow said the company is working on partnerships with 13 health systems and is way ahead of growth goals for this area of the business for this year and next.

Also, while the pandemic presented short-term headwinds, it has not changed the long-term tailwinds, Kusserow said. These include demographics, with a potential surge of older patients in the coming year; “psychographics,” with most baby boomers preferring to age and die at home; positive updates in home health and hospice; market share; and a unique and diversified asset base comprising home health, personalized care, hospice, hospital at home, SNF at home and palliative care at home.

“Amedisys sits poised to change the game,” Kusserow said.