Amedisys’ intense focus on negotiating better payer rates played a key role in the selection of Richard Ashworth as the new head of the home care and hospice giant. That is according to Amedisys Chairman and interim CEO Paul Kusserow, who explained the hiring rationale Tuesday — just one day after Amedisys appointed the former Walgreens and Tivity Health executive president and CEO.
“At Tivity, they depend on payers,” Kusserow told investors at the Oppenheimer Annual Healthcare Conference. “The relationships there and the understanding of how payers work – even though this is a different type of benefit -– having those relationships and understanding how to deal with payers is increasingly important.”
The appointment of Ashworth — who takes the reins from Kusserow next month — comes at a crucial time for Amedisys. Last month, the company sold off its personal care business to HouseWorks LLC and will offer those services through Houseworks. At the same time, it also announced a partnership with Blue Cross Blue Shield of Tennessee to offer palliative care services for the first time through its Contessa hospital-at-home division. Kusserow said Amedisys is keen to expand further into palliative care.
Offering a full complement of services to Medicare Advantage and Medigap plans could give Amedisys more leverage in negotiating better rates with those plans. As the former president and CEO of Tivity Health, Ashworth negotiated with MA plans to provide health and well-being programs to their members. He told the conference his experience doing that will “bring some unique perspectives and unique relationships” to Amedisys.
Ashworth’s experience as a healthcare leader could also help Amedisys turn its financial fortunes around, the company noted. Amedisys struggled against economic headwinds throughout 2022, which included rising inflation and the ongoing COVID-19 pandemic. Those struggles led to the ouster of CEO Chris Gerard last November, just seven months after taking over the chief executive role from Kusserow.
At least one economic headwind appears to be easing, according to Kusserow. He told the conference higher labor costs are dissipating as more nurses return to the workforce due to fears over a possible recession. Kusserow added the flexibility that home health and hospice provides clinicians is attracting more talent to those sectors.
