Home care and hospice giant Amedisys announced it will repurchase $100 million shares of stock in 2023 but also emphasized the buybacks will not derail acquisition plans for this year.
“Given our strong cash flow and low leverage, we feel it is prudent to have authorization to buy-back shares throughout the course of the year,” Amedisys Acting COO and CFO Scott Ginn said in a statement. “This will become a recurring part of our capital deployment strategy; however, our priorities will continue to be accretive acquisitions in both home health and hospice and building our high-acuity care joint ventures.”
The stock repurchase program will run through Dec. 31, 2023. Amedisys said it will buy back shares “from time to time” in amounts and at prices the company deems appropriate based on market conditions. Amedisys added the repurchases may be executed using open market purchases, unsolicited or solicited privately negotiated transactions, an accelerated stock repurchase program.
The announcement comes as Amedisys is hoping to reverse its fortunes after a year of lackluster earnings through much of 2022. Amedisys Chairman and CEO Paul Kusserow told McKnight’s Home Care Daily Pulse last month the company is laser-focused on taking advantage of lower valuations this year and finding acquisitions that fit within the company. He added Amedisys is close to making an announcement on a deal in palliative care and is also interested in possible behavioral health acquisitions.
Baton Rouge, LA-based Amedisys has expanded its footprint and scope of service in the past two years. In 2021, the company acquired Nashville-based hospital-at-home firm Contessa for $250 million. Last year, the company closed on its acquisitions of home health and hospice firms Evolution Health, AssistedCare Home Health and AssistedCare of the Carolinas.
Amedisys has also undergone leadership changes in recent months. Kusserow returned to the CEO post in November, following the ouster of former CEO Chris Gerrard. Ginn assumed the role of acting COO late last year, in addition to his role as CFO.
