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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-24260

AMEDISYS, INC.

(Exact Name of Registrant as Specified in its Charter)



Delaware						11-3131700
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

3854 American Way, Suite A, Baton Rouge, LA 70816

(Address of principal executive offices, including zip code)

(225) 292-2031 or (800) 467-2662

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

AMED

The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date, is as follows: Common stock, $0.001 par value, 32,886,703 shares outstanding as of July 25, 2025.

TABLE OF CONTENTS



SPECIAL CAUTION CONCERNING FORWARD-LOOKING STATEMENTS		1
;;;
PART I.	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS:
	CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 202 5 AND DECEMBER 31, 202 4 (UNAUDITED)	2
	CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 202 5 AND 202 4 (UNAUDITED)	3
	CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 202 5 AND 202 4 (UNAUDITED)	4
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 202 5 AND 202 4 (UNAUDITED)	5
	NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	23
ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	39
ITEM 4.	CONTROLS AND PROCEDURES	40

PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	41
ITEM 1A.	RISK FACTORS	41
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	41
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	41
ITEM 4.	MINE SAFETY DISCLOSURES	41
ITEM 5.	OTHER INFORMATION	41
ITEM 6.	EXHIBITS	42
SIGNATURES		43

SPECIAL CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

When included in this Quarterly Report on Form 10-Q, or in other documents that we file with the Securities and Exchange Commission (“SEC”) or in statements made by or on behalf of the Company, words like “believes,” “belief,” “expects,” “strategy,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “could,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to, the following: disruption from the proposed merger with UnitedHealth Group with patient, payor, provider, referral source, supplier or management and employee relationships; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with UnitedHealth Group or the inability to complete the proposed transaction on the anticipated terms or by the end of the Waiver Period (as defined in the Waiver (as defined below)); the risk that necessary regulatory approvals for the proposed merger with UnitedHealth Group are delayed, are not obtained or are obtained subject to conditions that are not anticipated; the failure of the conditions to the proposed merger to be satisfied; the costs related to the proposed transaction; the diversion of management time on merger-related issues; the risk that termination fees may be payable by the Company in the event that the merger agreement is terminated under certain circumstances; reputational risk related to the proposed merger; the risk of litigation or regulatory action related to the proposed merger, including among other things, the DOJ Action (as defined below); changes in Medicare and other medical payment levels; changes in payments and covered services by federal and state governments; future cost containment initiatives undertaken by third-party payors; changes in the episodic versus non-episodic mix of our payors, the case mix of our patients and payment methodologies; staffing shortages driven by the competitive labor market; our ability to attract and retain qualified personnel; competition in the healthcare industry; our ability to maintain or establish new patient referral sources; changes in or our failure to comply with existing federal and state laws or regulations or the inability to comply with new government regulations on a timely basis; changes in estimates and judgments associated with critical accounting policies; our ability to consistently provide high-quality care; our ability to keep our patients and employees safe; our access to financing; our ability to meet debt service requirements and comply with covenants in debt agreements; business disruptions due to natural or man-made disasters, climate change or acts of terrorism, widespread protests or civil unrest; our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively; our ability to realize the anticipated benefits of acquisitions, investments and joint ventures; our ability to integrate, manage and keep our information systems secure; the impact of inflation; the impact of new or increased tariffs; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of artificial intelligence ("AI") and generative AI, and changes in laws or developments with respect to any litigation relating to the Company, including various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking, and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law. For a discussion of some of the factors discussed above as well as additional factors, see our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025, particularly, Part I, Item 1A. Risk Factors therein, and Part II, Item 1A. Risk Factors of this Quarterly Report on Form 10-Q. Additional risk factors may also be described in reports that we file from time to time with the SEC.

Available Information

Our company website address is www.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled “Investors” on our website home page. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website. In addition, we make available on the Investor Relations subpage of our website (under the link “SEC filings”), free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, ownership reports on Forms 3, 4 and 5 and any amendments to those reports as soon as reasonably practicable after we electronically file or furnish such reports with the SEC. Further, copies of our Certificate of Incorporation and Bylaws, our Code of Ethical Business Conduct, our Corporate Governance Guidelines and the charters for the Audit, Compensation, Quality of Care, Compliance and Ethics and Nominating and Corporate Governance Committees of our Board are also available on the Investor Relations subpage of our website (under the link “Governance”). Reference to our website does not constitute incorporation by reference of the information contained on the website and should not be considered part of this document. Our electronically filed reports can also be obtained on the SEC’s internet site at http://www.sec.gov.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)


	June 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	337,304	$	303,242
Patient accounts receivable	295,521		296,075
Prepaid expenses	18,282		13,072
Other current assets	11,091		19,694
Total current assets	662,198		632,083
Property and equipment, net of accumulated depreciation of $104,613 and $100,890	38,273		42,108
Operating lease right of use assets	86,614		81,500
Goodwill	1,213,888		1,213,888
Intangible assets, net of accumulated amortization of $21,134 and $18,787	79,243		81,155
Other assets	135,169		87,980
Total assets	$	2,215,385	$	2,138,714
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	29,789	$	39,956
Payroll and employee benefits	138,515		151,995
Accrued expenses	150,379		152,564
Termination fee paid by UnitedHealth Group	106,000		106,000
Current portion of long-term obligations	36,799		37,968
Current portion of operating lease liabilities	26,879		25,909
Total current liabilities	488,361		514,392
Long-term obligations, less current portion	326,425		339,313
Operating lease liabilities, less current portion	60,404		56,111
Deferred income tax liabilities	64,445		48,051
Other long-term obligations	847		882
Total liabilities	940,482		958,749
Commitments and Contingencies—Note 7
Equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding	—		—
Common stock, $0.001 par value, 60,000,000 shares authorized; 38,476,503 and 38,307,521 shares issued; 32,881,262 and 32,776,148 shares outstanding	38		38
Additional paid-in capital	833,099		818,201
Treasury stock, at cost, 5,595,241 and 5,531,373 shares of common stock	(480,859)		(474,854)

Retained earnings	880,252		791,156
Total Amedisys, Inc. stockholders’ equity	1,232,530		1,134,541
Noncontrolling interests	42,373		45,424
Total equity	1,274,903		1,179,965
Total liabilities and equity	$	2,215,385	$	2,138,714

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands, except per share data)

(Unaudited)


	For the Three-Month Periods Ended June 30,				For the Six-Month Periods Ended June 30,
	2025		2024		2025		2024
Net service revenue	$	621,861	$	591,187	$	1,216,642	$	1,162,601
Operating expenses:
Cost of service, inclusive of depreciation	348,470		326,933		682,520		648,470
General and administrative expenses:
Salaries and benefits	130,322		129,323		262,290		257,269
Non-cash compensation	7,266		7,828		13,489		15,261
Merger-related expenses	26,277		11,901		43,046		32,568
Depreciation and amortization	4,372		4,386		8,819		8,657
Impairment	883		—		883		—
Other	58,693		58,602		116,658		116,543
Total operating expenses	576,283		538,973		1,127,705		1,078,768
Operating income	45,578		52,214		88,937		83,833
Other income (expense):
Interest income	3,016		1,617		5,889		3,344
Interest expense	(6,415)		(7,895)		(12,837)		(16,014)
Equity in earnings from equity method investments	1,641		1,515		3,435		2,425
Gain on equity method investment	—		—		48,093		—
Miscellaneous, net	4,506		1,779		6,014		2,869
Total other income (expense), net	2,748		(2,984)		50,594		(7,376)
Income before income taxes	48,326		49,230		139,531		76,457
Income tax expense	(19,274)		(16,657)		(48,658)		(29,290)
Net income	29,052		32,573		90,873		47,167
Net income attributable to noncontrolling interests	(968)		(272)		(1,777)		(466)
Net income attributable to Amedisys, Inc.	$	28,084	$	32,301	$	89,096	$	46,701
Basic earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders	$	0.85	$	0.99	$	2.71	$	1.43
Weighted average shares outstanding	32,849		32,706		32,822		32,688
Diluted earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders	$	0.84	$	0.98	$	2.68	$	1.42
Weighted average shares outstanding	33,289		33,047		33,231		32,992

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Amounts in thousands, except common stock shares)

(Unaudited)


	For the Three-Months Ended June 30, 2025
	Total		Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Noncontrolling Interests
			Shares	Amount
Balance, March 31, 2025	$	1,245,074	38,381,255	$	38	$	825,138	$	(477,718)	$	852,168	$	45,448
Issuance of non-vested stock	—		94,189	—		—		—		—		—
Exercise of stock options	56		1,059	—		56		—		—		—
Non-cash compensation	7,905		—	—		7,905		—		—		—
Surrendered shares	(3,141)		—	—		—		(3,141)		—		—
Noncontrolling interest distributions	(475)		—	—		—		—		—		(475)
Gain on termination of joint venture	(3,568)		—	—		—		—		—		(3,568)
Net income	29,052		—	—		—		—		28,084		968
Balance, June 30, 2025	$	1,274,903	38,476,503	$	38	$	833,099	$	(480,859)	$	880,252	$	42,373

	For the Three-Months Ended June 30, 2024
	Total		Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Noncontrolling Interests
			Shares	Amount
Balance, March 31, 2024	$	1,142,654	38,146,546	$	38	$	795,063	$	(469,243)	$	762,325	$	54,471
Issuance of non-vested stock	—		102,371	—		—		—		—		—
Non-cash compensation	8,298		—	—		8,298		—		—		—
Surrendered shares	(3,578)		—	—		—		(3,578)		—		—
Noncontrolling interest contributions	147		—	—		—		—		—		147
Noncontrolling interest distributions	(1,208)		—	—		—		—		—		(1,208)
Net income	32,573		—	—		—		—		32,301		272
Balance, June 30, 2024	$	1,178,886	38,248,917	$	38	$	803,361	$	(472,821)	$	794,626	$	53,682

	For the Six-Months Ended June 30, 2025
	Total		Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Noncontrolling Interests
			Shares	Amount
Balance, December 31, 2024	$	1,179,965	38,307,521	$	38	$	818,201	$	(474,854)	$	791,156	$	45,424
Issuance of non-vested stock	—		166,149	—		—		—		—		—
Exercise of stock options	149		2,833	—		149		—		—		—
Non-cash compensation	14,749		—	—		14,749		—		—		—
Surrendered shares	(6,005)		—	—		—		(6,005)		—		—
Noncontrolling interest distributions	(1,260)		—	—		—		—		—		(1,260)
Gain on termination of joint venture	(3,568)		—	—		—		—		—		(3,568)
Net income	90,873		—	—		—		—		89,096		1,777
Balance, June 30, 2025	$	1,274,903	38,476,503	$	38	$	833,099	$	(480,859)	$	880,252	$	42,373

	For the Six-Months Ended June 30, 2024
	Total		Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Noncontrolling Interests
			Shares	Amount
Balance, December 31, 2023	$	1,119,783	38,131,478	$	38	$	787,177	$	(468,626)	$	747,925	$	53,269
Issuance of non-vested stock	—		117,439	—		—		—		—		—
Non-cash compensation	16,184		—	—		16,184		—		—		—
Surrendered shares	(4,195)		—	—		—		(4,195)		—		—
Noncontrolling interest contributions	1,911		—	—		—		—		—		1,911
Noncontrolling interest distributions	(1,964)		—	—		—		—		—		(1,964)
Net income	47,167		—	—		—		—		46,701		466
Balance, June 30, 2024	$	1,178,886	38,248,917	$	38	$	803,361	$	(472,821)	$	794,626	$	53,682

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)


	For the Six-Month Periods Ended June 30,
	2025		2024
Cash Flows from Operating Activities:
Net income	$	90,873	$	47,167
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (inclusive of depreciation included in cost of service)	13,488		12,496
Non-cash compensation	14,749		16,184
Amortization and impairment of operating lease right of use assets	17,395		17,100
Gain on disposal of property and equipment	(45)		(19)
Gain on equity method investment	(48,093)		—
Gain on termination of joint venture	(3,568)		—
Deferred income taxes	16,395		6,577
Equity in earnings from equity method investments	(3,435)		(2,425)
Amortization of deferred debt issuance costs	442		495
Return on equity method investments	3,379		718
Impairment	883		—
Changes in operating assets and liabilities:
Patient accounts receivable	554		(44,357)
Other current assets	3,576		3,127
Operating lease right of use assets	(2,364)		(2,069)
Other assets	48		370
Accounts payable	(9,805)		(1,693)
Accrued expenses	(15,666)		7,095
Other long-term obligations	(34)		(573)
Operating lease liabilities	(15,248)		(14,429)
Net cash provided by operating activities	63,524		45,764
Cash Flows from Investing Activities:
Proceeds from the sale of deferred compensation plan assets	27		21
Proceeds from the sale of property and equipment	19		—
Purchases of property and equipment	(1,915)		(4,055)
Investments in technology assets	(426)		(409)
Investment in equity method investee	—		(196)
Net cash used in investing activities	(2,295)		(4,639)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options	149		—
Shares withheld to pay taxes on non-cash compensation	(6,005)		(4,195)
Noncontrolling interest contributions	—		1,911
Noncontrolling interest distributions	(1,260)		(1,964)
Principal payments of long-term obligations	(19,552)		(18,382)
Debt issuance costs	(499)		—
Net cash used in financing activities	(27,167)		(22,630)
Net increase in cash, cash equivalents and restricted cash	34,062		18,495
Cash, cash equivalents and restricted cash at beginning of period	303,242		138,863
Cash, cash equivalents and restricted cash at end of period	$	337,304	$	157,358
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	12,359	$	15,507
Cash paid for income taxes, net of refunds received	$	25,330	$	18,393
Cash paid for operating lease liabilities	$	17,612	$	16,498
Cash paid for finance lease liabilities	$	8,302	$	7,111


	For the Six-Month Periods Ended June 30,
	2025		2024
Supplemental Disclosures of Non-Cash Activity:
Right of use assets obtained in exchange for operating lease liabilities	$	20,381	$	10,947
Right of use assets obtained in exchange for finance lease liabilities	$	6,239	$	10,017
Reductions to right of use assets resulting from reductions to operating lease liabilities	$	75	$	168
Reductions to right of use assets resulting from reductions to finance lease liabilities	$	688	$	1,119

The accompanying notes are an integral part of these condensed consolidated financial statements.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. NATURE OF OPERATIONS, CONSOLIDATION AND PRESENTATION OF FINANCIAL STATEMENTS

Amedisys, Inc., a Delaware corporation (together with its consolidated subsidiaries, referred to herein as “Amedisys,” “we,” “us,” or “our”), is a multi-state provider of home health, hospice and high acuity care services with approximately 68% of our consolidated net service revenue derived from Medicare for the three and six-month periods ended June 30, 2025, and approximately 69% and 70% of our consolidated net service revenue derived from Medicare for the three and six-month periods ended June 30, 2024, respectively. As of June 30, 2025, we owned and operated 347 Medicare-certified home health care centers, 164 Medicare-certified hospice care centers and 8 admitting high acuity care joint ventures in 38 states within the United States and the District of Columbia.

Amedisys and UnitedHealth Group Incorporated Merger

On June 26, 2023, Amedisys, UnitedHealth Group Incorporated, a Delaware corporation ("UnitedHealth Group"), and Aurora Holdings Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of UnitedHealth Group ("Merger Sub"), entered into an Agreement and Plan of Merger, pursuant to which Merger Sub will merge with and into Amedisys with Amedisys continuing as the surviving corporation and becoming a wholly owned subsidiary of UnitedHealth Group. See Note 4 - Mergers and Acquisitions for additional information.

Basis of Presentation

In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly our financial position, our results of operations and our cash flows in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting. Our results of operations for the interim periods presented are not necessarily indicative of the results of our operations for the entire year and have not been audited by our independent auditors.

This report should be read in conjunction with our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025 (the “Form 10-K”), which includes information and disclosures not included herein. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from the interim financial information presented, as allowed by SEC rules and regulations.

Use of Estimates

Our accounting and reporting policies conform with U.S. GAAP. In preparing the unaudited condensed consolidated financial statements, we are required to make estimates and assumptions that impact the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Principles of Consolidation

These unaudited condensed consolidated financial statements include the accounts of Amedisys, Inc. and our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in our accompanying unaudited condensed consolidated financial statements, and business combinations accounted for as purchases have been included in our condensed consolidated financial statements from their respective dates of acquisition. In addition to our wholly owned subsidiaries, we also have certain equity investments that are accounted for as set forth in Note 3 - Investments.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

We account for service revenue from contracts with customers in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, and as such, we recognize service revenue in the period in which we satisfy our performance obligations under our contracts by transferring our promised services to our customers in amounts that reflect the consideration to which we expect to be entitled in exchange for providing patient care, which are the transaction prices allocated to the distinct services. Our cost of obtaining contracts is not material.

Revenues are recognized as performance obligations are satisfied, which varies based on the nature of the services provided. Our performance obligation is the delivery of patient care services in accordance with the nature and frequency of services outlined in physicians' orders, which are determined by a physician based on a patient's specific goals.

Our performance obligations relate to contracts with a duration of less than one year; therefore, we have elected to apply the optional exemption provided by ASC 606 and are not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. The unsatisfied or partially unsatisfied performance obligations are generally completed when the patients are discharged, which generally occurs within days or weeks of the end of the reporting period.

We determine the transaction price based on gross charges for services provided, reduced by estimates for contractual and non-contractual revenue adjustments. Contractual revenue adjustments are recorded for the difference between our standard rates and the contracted rates to be realized from patients, third-party payors and others for services provided. Non-contractual revenue adjustments include discounts provided to self-pay, uninsured patients or other payors, adjustments resulting from audits and payment reviews and adjustments arising from our inability to obtain appropriate billing documentation, authorizations or face-to-face documentation. Subsequent changes to the estimate of the transaction price are recorded as adjustments to net service revenue in the period of change.

Non-contractual revenue adjustments are recorded for self-pay, uninsured patients and other payors by major payor class based on our historical collection experience, aged accounts receivable by payor and current industry conditions. The non-contractual revenue adjustments represent the difference between amounts billed and amounts we expect to collect based on our collection history with similar payors. We assess our ability to collect for the healthcare services provided at the time of patient admission based on our verification of the patient's insurance coverage under Medicare, Medicaid and other commercial or managed care insurance programs.

Amounts due from third-party payors, primarily commercial health insurers and government programs (Medicare and Medicaid), include variable consideration for retroactive revenue adjustments due to settlements of audits and payment reviews. We determine our estimates for non-contractual revenue adjustments related to audits and payment reviews based on our historical experience and success rates in the claim appeals and adjudication process.

We determine our estimates for non-contractual revenue adjustments related to our inability to obtain appropriate billing documentation, authorizations or face-to-face documentation based on our historical collection experience.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Net service revenue by payor class as a percentage of total net service revenue for each of our operating segments, which are described in Note 8 - Segment Information, is as follows:


	For the Three-Month Periods Ended June 30,				For the Six-Month Periods Ended June 30,
	2025		2024		2025		2024
Home Health:
Medicare	35	%	36	%	35	%	37	%
Non-Medicare - Episodic-based	9	%	8	%	9	%	8	%
Non-Medicare - Non-episodic based	20	%	19	%	20	%	19	%
Hospice:
Medicare	33	%	33	%	33	%	33	%
Non-Medicare	1	%	2	%	1	%	2	%
High Acuity Care	2	%	2	%	2	%	1	%
	100	%	100	%	100	%	100	%

Home Health Revenue Recognition

Medicare Revenue

All Medicare contracts are required to have a signed plan of care which represents a single performance obligation, comprised of the delivery of a series of distinct services that are substantially similar and have a similar pattern of transfer to the customer. Accordingly, we account for the series of services ("episode") as a single performance obligation satisfied over time, as the customer simultaneously receives and consumes the benefits of the goods and services provided. An episode starts the first day a billable visit is performed and ends 60 days later or upon discharge, if earlier, with multiple continuous episodes allowed. Each 60-day episode includes two 30-day periods of care.

Net service revenue is recorded based on the established Federal Medicare home health payment rate for a 30-day period of care. ASC 606 notes that if an entity has a right to consideration from a customer in an amount that corresponds directly with the value of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. We have elected to apply the "right to invoice" practical expedient, and therefore, our revenue recognition is based on the reimbursement we are entitled to for each 30-day period of care. We utilize our historical average length of stay for each 30-day period of care as the measure of progress towards the satisfaction of our performance obligation.

The Patient-Driven Groupings Model ("PDGM") uses timing, admission source, functional impairment levels and principal and other diagnoses to case-mix adjust payments. The case-mix adjusted payment for a 30-day period of care is subject to additional adjustments based on certain variables, including, but not limited to (a) an outlier payment if our patient's care was unusually costly (capped at 10% of total reimbursement per provider number); (b) a low utilization payment adjustment (“LUPA”) if the number of visits provided was less than the established threshold, which ranges from two to six visits and varies for every case-mix group; (c) a partial payment if a patient is transferred to another provider or from another provider before completing the 30-day period of care; and (d) the applicable geographic wage index. Payments for routine and non-routine supplies are included in the 30-day payment rate.

Medicare can also make various adjustments to payments received if we are unable to produce appropriate billing documentation or acceptable authorizations. We estimate the impact of such adjustments based on our historical collection experience, which primarily includes a historical collection rate of approximately 99% on Medicare claims, and record this estimate during the period in which services are rendered to revenue with a corresponding reduction to patient accounts receivable.

Amounts due from Medicare include variable consideration for retroactive revenue adjustments due to settlements of audits and payment reviews. We determine our estimates for non-contractual revenue adjustments related to audits and payment reviews based on our historical experience and success rates in the claim appeals and adjudication process.

The Medicare home health benefit requires that beneficiaries be homebound (meaning that the beneficiary is unable to leave his/her home without a considerable and taxing effort), require intermittent skilled nursing, physical therapy or speech therapy services and receive treatment under a plan of care established and periodically reviewed by a physician.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The notice of admission ("NOA") process implemented by the Centers for Medicare and Medicaid Services ("CMS") requires a one-time submission for each patient that establishes the home health period of care and covers all contiguous 30-day periods of care until the patient is discharged from home health services. If the NOA is not submitted timely, a payment reduction is applied equal to 1/30 of the 30-day payment rate for each day from the start of care date until the date the NOA is submitted.

Non-Medicare Revenue

Payments from non-Medicare payors are either a percentage of Medicare rates, per-visit rates or case rates depending upon the terms and conditions established with such payors. Approximately 30% of our managed care contract volume affords us the opportunity to receive additional payments if we achieve certain quality or process metrics as defined in each contract (e.g. star ratings and acute-care hospitalization rates). We record revenue associated with these metrics at the time the amounts are probable and estimable.

Episodic-based Revenue. We recognize revenue in a similar manner as we recognize Medicare revenue for amounts that are paid by other insurance carriers, including Medicare Advantage programs; however, these amounts can vary based upon the negotiated terms, the majority of which range from 90% to 100% of Medicare rates.

Non-episodic based Revenue. For our per visit contracts, gross revenue is recorded on an accrual basis based upon the date of service at amounts equal to our established or estimated per-visit rates. For our case rate contracts, gross revenue is recorded over our historical average length of stay using the established case rate for each admission. Contractual revenue adjustments are recorded for the difference between our standard rates and the contracted rates to be realized from patients, third parties and others for services provided and are deducted from gross revenue to determine net service revenue. We also make non-contractual revenue adjustments to non-episodic revenue based on our historical experience to reflect the estimated transaction price. We receive a minimal amount of our net service revenue from patients who are either self-insured or are obligated for an insurance co-payment.

Under our case rate contracts, we may receive reimbursement before all services are rendered. Any cash received that exceeds the associated revenue earned is recorded to deferred revenue in accrued expenses within our condensed consolidated balance sheets.

Hospice Revenue Recognition

Hospice Medicare Revenue

Gross revenue is recorded on an accrual basis based upon the date of service at amounts equal to the estimated payment rates. The estimated payment rates are predetermined daily or hourly rates for each of the four levels of care we deliver. The four levels of care are routine care, general inpatient care, continuous home care and respite care. Routine care accounted for 97% of our total Medicare hospice service revenue for the three and six-month periods ended June 30, 2025 and 2024. There are two separate payment rates for routine care: payments for the first 60 days of care and care beyond 60 days. In addition to the two routine rates, we may also receive a service intensity add-on (“SIA”). The SIA is based on visits made in the last seven days of life by a registered nurse or medical social worker for patients in a routine level of care.

The performance obligation is the delivery of hospice services to the patient, as determined by a physician, each day the patient is on hospice care.

We make adjustments to Medicare revenue for non-contractual revenue adjustments, which include our inability to obtain appropriate billing documentation or acceptable authorizations and other reasons unrelated to credit risk. We estimate the impact of these non-contractual revenue adjustments based on our historical collection experience, which primarily includes a historical collection rate of over 99% on Medicare claims, and record this estimate during the period in which services are rendered with a corresponding reduction to patient accounts receivable.

Additionally, our hospice service revenue is subject to certain limitations on payments from Medicare which are considered variable consideration. We are subject to an inpatient cap limit and an overall Medicare payment cap for each provider number. We monitor these caps on a provider-by-provider basis and estimate amounts due back to Medicare if we estimate a cap has been exceeded. We record these adjustments as a reduction to revenue and an increase in accrued expenses within our condensed consolidated balance sheets. Providers are required to self-report and pay their estimated cap liability by February

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

28th of the following year. As of June 30, 2025 and December 31, 2024, we had recorded $1.8 million and $1.3 million, respectively, for estimated amounts due back to Medicare in accrued expenses for the Federal cap years ended September 30, 2018 through September 30, 2025.

Hospice Non-Medicare Revenue

Gross revenue is recorded on an accrual basis based upon the date of service at amounts equal to our established rates or estimated per day rates, as applicable. Contractual revenue adjustments are recorded for the difference between our standard rates and the contractual rates to be realized from patients, third-party payors and others for services provided and are deducted from gross revenue to determine our net service revenue. We also make non-contractual adjustments to non-Medicare revenue based on our historical experience to reflect the estimated transaction price.

High Acuity Care Revenue Recognition

High Acuity Care Revenue

Our revenues are primarily derived from contracts with health insurance plans for the coordination and provision of home recovery care services to clinically-eligible patients who are enrolled members in those insurance plans, contracts with health system partners for the coordination and provision of home recovery care services to clinically-eligible patients who are discharged early from a health system facility to complete their inpatient stay at home and contracts with health insurance plans to provide palliative care at home services to engaged members.

Under our health insurance plan contracts, we provide home recovery care services, which include hospital-equivalent ("H@H") and skilled nursing facility ("SNF") equivalent services ("SNF@H"), for high acuity care patients on a full risk basis whereby we assume the financial risk for the coordination and payment of all hospital or SNF replacement medical services necessary to treat the medical condition for which the patient was diagnosed in a home-based setting for a 30-day (H@H) or 60-day (SNF@H) episode of care in exchange for a fixed contracted bundled rate. For H@H programs, the fixed rate is based on the assigned diagnosis related group ("DRG") and the 30-day post-discharge related spend. For SNF@H programs, the fixed rate is based on the 60-day post-discharge related spend. Our performance obligation is the coordination and provision of patient care in accordance with physicians’ orders over either a 30-day or 60-day episode of care. The majority of our care coordination services and direct patient care is provided in the first five to seven days of the episode period (the "acute phase"). Monitoring services and follow-up direct patient care, as deemed necessary by the treating physician, are provided throughout the remainder of the episode. Since the majority of our services are provided during the acute phase, we recognize net service revenue over the acute phase based on gross charges for the services provided per the applicable managed care contract rates, reduced by estimates for revenue adjustments.

Under our contracts with health system partners, we provide home recovery care services for high acuity patients on a limited risk basis whereby we assume the risk for certain healthcare services during the remainder of an inpatient acute stay serviced at the patient’s home (completing H@H - "CH@H") in exchange for a contracted per diem rate. The performance obligation is the coordination and provision of required medical services, as determined by the treating physician, for each day the patient receives inpatient-equivalent care at home. As such, net service revenue is recognized as services are administered and as our performance obligations are satisfied on a per diem basis, reduced by estimates for revenue adjustments.

We recognize adjustments to revenue during the period in which changes to estimates of assigned patient diagnoses or episode terminations become known, in accordance with the applicable managed care contracts. For certain health insurance plans, revenue is reduced by amounts owed by enrollees to healthcare providers under deductible, coinsurance or copay provisions of health insurance plan policies, since those amounts are repaid to the health insurance plans by us as part of a retrospective reconciliation process.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include money market funds, certificates of deposit and all highly liquid debt instruments with maturities of three months or less when purchased. The Company maintains cash with commercial banks, which are insured by the Federal Deposit Insurance Corporation (“FDIC”). At various times, the Company has deposits in these financial institutions in excess of the amount insured by the FDIC. The Company has not experienced any losses related to these balances and believes its credit risk to be minimal. The carrying amounts of our cash and cash equivalents approximate their fair values, which are primarily based on Level 1 inputs. Restricted cash includes cash that is not available for ordinary business use.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Patient Accounts Receivable

We report accounts receivable from services rendered at their estimated transaction price, which includes contractual and non-contractual revenue adjustments based on the amounts expected to be due from payors. Our patient accounts receivable are uncollateralized and consist of amounts due from Medicare, Medicaid, other third-party payors and patients. Our non-Medicare third-party payor base is comprised of a diverse group of payors that are geographically dispersed across the country. As of June 30, 2025, there is one payor, other than Medicare, that accounts for more than 10% of our total outstanding patient receivables (approximately 11%). Thus, we believe there are no other significant concentrations of receivables that would subject us to any significant credit risk in the collection of our patient accounts receivable. We write off accounts on a monthly basis once we have exhausted our collection efforts and deem an account to be uncollectible. We believe the collectability risk associated with our Medicare accounts, which represented 62% and 64% of our patient accounts receivable at June 30, 2025 and December 31, 2024, respectively, is limited due to our historical collection rate of over 99% from Medicare and the fact that Medicare is a U.S. government payor.

We do not believe there are any significant concentrations of revenues from any payor that would subject us to any significant credit risk in the collection of our accounts receivable.

Medicare Home Health

For our home health patients, our pre-billing process includes verifying that we are eligible for payment from Medicare for the services that we provide to our patients. Our Medicare billing begins with a process to ensure that our billings are accurate through the utilization of an electronic Medicare claim review. We bill Medicare following the end of each 30-day period of care or upon discharge, if earlier, for the services provided to the patient.

Medicare Hospice

For our hospice patients, our pre-billing process includes verifying that we are eligible for payment from Medicare for the services that we provide to our patients. Our Medicare billing begins with a process to ensure that our billings are accurate through the utilization of an electronic Medicare claim review. We bill Medicare on a monthly basis for the services provided to the patient.

Non-Medicare Home Health, Hospice and High Acuity Care

For our non-Medicare patients, our pre-billing process primarily begins with verifying a patient’s eligibility for services with the applicable payor. Once the patient has been confirmed for eligibility, we will provide services to the patient and bill the applicable payor. Our review and evaluation of non-Medicare accounts receivable includes a detailed review of outstanding balances and special consideration to concentrations of receivables from particular payors or groups of payors with similar characteristics that would subject us to any significant credit risk.

Business Combinations

We account for acquisitions using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Acquisitions are accounted for as purchases and are included in our condensed consolidated financial statements from their respective acquisition dates. Assets acquired, liabilities assumed and noncontrolling interests, if any, are measured at fair value on the acquisition date using the appropriate valuation method. Goodwill generated from acquisitions is recognized for the excess of the purchase price over tangible and identifiable intangible assets. In determining the fair value of identifiable intangible assets and any noncontrolling interests, we use various valuation techniques including the income approach, the cost approach and the market approach. These valuation methods require us to make estimates and assumptions surrounding projected revenues and costs, growth rates and discount rates.

Fair Value of Financial Instruments

The following details our financial instruments where the carrying value and the fair value differ (amounts in millions):


			Fair Value at Reporting Date Using
Financial Instrument	Carrying Value as of June 30, 2025		Quoted Prices in Active Markets for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
$450.0 million Term Loan	$	338.1	$	—	$	333.9	$	—

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The three levels of inputs are as follows:

•Level 1 – Quoted prices in active markets for identical assets and liabilities.

•Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

•Level 3 – Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.

Our deferred compensation plan assets are recorded at fair value and are considered a level 2 measurement. For our other financial instruments, including our cash and cash equivalents, patient accounts receivable, accounts payable, payroll and employee benefits and accrued expenses, we estimate the carrying amounts approximate fair value.

Weighted-Average Shares Outstanding

Net income per share attributable to Amedisys, Inc. common stockholders, calculated on the treasury stock method, is based on the weighted average number of shares outstanding during the period. The following table sets forth, for the periods indicated, shares used in our computation of weighted-average shares outstanding, which are used to calculate our basic and diluted net income attributable to Amedisys, Inc. common stockholders (amounts in thousands):


	For the Three- Month Periods Ended June 30,		For the Six- Month Periods Ended June 30,
	2025	2024	2025	2024
Weighted average number of shares outstanding - basic	32,849	32,706	32,822	32,688
Effect of dilutive securities:
Stock options	11	10	10	10
Non-vested stock and stock units	429	331	399	294
Weighted average number of shares outstanding - diluted	33,289	33,047	33,231	32,992
Anti-dilutive securities	177	224	409	472

3. INVESTMENTS

We consolidate investments when the entity is a variable interest entity ("VIE") and we are the primary beneficiary or if we have controlling interests in the entity, which is generally ownership in excess of 50%. Third-party equity interests in our consolidated joint ventures are reflected as noncontrolling interests in our condensed consolidated financial statements.

We account for investments in entities in which we have the ability to exercise significant influence under the equity method of accounting if we hold 50% or less of the voting stock and the entity is not a VIE in which we are the primary beneficiary. The book value of investments that we account for under the equity method of accounting was $97.9 million and $49.8 million as of June 30, 2025 and December 31, 2024, respectively, and is reflected in other assets within our condensed consolidated balance sheets.

During the three-month period ended March 31, 2025, a third-party acquired a majority of the membership interests of a newly formed entity which included one of our equity method investments, Medalogix, as well as a healthcare referral and workflow management company. We rolled 100% of our ownership interest in Medalogix into the newly formed entity, and in connection with the transaction, we recognized a $48.1 million gain based on the fair value of our equity in Medalogix upon executing the transaction, which is reflected in gain on equity method investment within our condensed consolidated income statement. We will continue to account for our investment in the new combined entity under the equity method of accounting in accordance with ASC 323, Investments - Equity Method and Joint Ventures.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We account for investments in entities in which we have less than 20% ownership interest under the cost method of accounting if we do not have the ability to exercise significant influence over the investee. The book value of investments that we account for under the cost method of accounting was $19.1 million and $20.0 million as of June 30, 2025 and December 31, 2024, respectively, and is reflected in other assets within our condensed consolidated balance sheets. During the three-month period ended June 30, 2025, we determined the book value of one of our cost method investments exceeded its fair value. As a result, we recorded a non-cash impairment charge of $0.9 million, which is reflected in impairment within general and administrative expenses in our condensed consolidated income statement.

Our high acuity care segment includes interests in several joint ventures with health system partners and a professional corporation that employs clinicians. Each of these entities meets the criteria to be classified as a VIE. We have management agreements in place whereby we manage the entities and run the day-to-day operations. As such, we possess the power to direct the activities that most significantly impact the economic performance of the VIEs. The significant activities include, but are not limited to, negotiating provider and payor contracts, establishing patient care policies and protocols, making employment and compensation decisions, developing the operating and capital budgets, performing marketing activities and providing accounting support. We also have the obligation to absorb any expected losses and the right to receive benefits. Additionally, from time to time, we may be required to provide joint venture funding.

As of June 30, 2025, we are consolidating all of our joint ventures with health system partners as well as the professional corporation as we have concluded that we are the primary beneficiary of these VIEs. We are in the process of winding down the operations of one of our consolidated joint ventures. As a result, we recorded an adjustment to the carrying value of noncontrolling interest totaling $3.5 million to miscellaneous, net within other income (expense) in our condensed consolidated income statement during the three-month period ended June 30, 2025.

The terms of the agreements with each VIE prohibit us from using the assets of the VIE to satisfy the obligations of other entities. The carrying amount of the VIEs’ assets and liabilities included in our condensed consolidated balance sheets are as follows (amounts in millions):


	As of June 30, 2025		As of December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	9.9	$	10.0
Patient accounts receivable	8.8		8.1
Total current assets	18.7		18.1
Operating lease right of use assets	0.1		—
Goodwill	8.5		8.5
Intangible assets	0.4		0.4
Other assets	0.3		0.3
Total assets	$	28.0	$	27.3
LIABILITIES
Current liabilities:
Accounts payable	$	0.7	$	0.6
Payroll and employee benefits	1.1		1.2
Accrued expenses	9.1		9.4
Operating lease liabilities	0.1		0.1
Total liabilities	$	11.0	$	11.3

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. MERGERS AND ACQUISITIONS

Mergers

On June 26, 2023, Amedisys, UnitedHealth Group Incorporated, a Delaware corporation ("UnitedHealth Group"), and Aurora Holdings Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of UnitedHealth Group ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which Merger Sub will merge with and into Amedisys with Amedisys continuing as the surviving corporation and becoming a wholly owned subsidiary of UnitedHealth Group (the “Merger”).

On November 12, 2024, the U.S. Department of Justice (“DOJ”) and the attorneys general of the states of Maryland, Illinois, New Jersey and New York filed a lawsuit commencing litigation (the “DOJ Action”) against Amedisys and UnitedHealth Group in the U.S. District Court for the District of Maryland, alleging that the Merger, if consummated, would violate Section 7 of the Clayton Act and so should be enjoined, the first count of the complaint, and that Amedisys committed certain violations of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and requests civil penalties against Amedisys for alleged violations of Section 7A, the second count of the complaint. We believe the plaintiffs' claims are without merit and intend to vigorously defend against such claims. The DOJ Action remains pending. The U.S. District Court for the District of Maryland has tentatively set October 27, 2025 as the start date for the trial, but may reschedule the trial to begin later, on or about February 9, 2026. The U.S. District Court for the District of Maryland has stated that it will make a final determination as to the trial date in late August 2025. On April 7, 2025, the U.S. District Court for the District of Maryland stayed the second count of the DOJ’s complaint, which alleges violations of Section 7A of the HSR Act, until after the resolution of the first count of the DOJ’s complaint, which seeks to enjoin the transaction.

On December 26, 2024, each of the parties to the Merger Agreement entered into a waiver (the “Waiver”) pursuant to which, among other things, Amedisys and UnitedHealth Group each waived its right to terminate the Merger Agreement due to a failure of the Merger to have been consummated by the outside date (as defined in the Merger Agreement) until the earlier of (i) 5:00 p.m. (New York time) on the tenth business day following a final order (whether or not appealable) issued by the U.S. District Court for the District of Maryland with respect to the complaint filed by the DOJ and certain other parties regarding the Merger and the other transactions contemplated by the Merger Agreement that permanently prohibits the consummation of the Merger and (ii) 11:59 p.m. (New York time) on December 31, 2025 (the “Waiver Period”). The Waiver also contains waivers by the parties thereto such that, (i) the Regulatory Break Fee (as defined in the Merger Agreement) under the Merger Agreement will be $275,000,000; (ii) the revenue-related aspect of the definition of “Burdensome Condition” (as defined in the Merger Agreement) is increased; (iii) Amedisys may take certain actions that would otherwise be prohibited by interim operating covenants contained in the Merger Agreement; and (iv) certain closing conditions relating to government approvals are no longer conditions to the consummation of the Merger.

On April 30, 2025, Amedisys, UnitedHealth Group and certain of their respective subsidiaries, collectively, sellers, entered into an agreement (the "BrightSpring Purchase Agreement") relating to the sale of certain Amedisys home health and hospice care centers and certain UnitedHealth Group care centers to Adoration Home Health Acquisitions, LLC, Adoration Hospice Care Acquisitions, LLC, and Senescence, LLC (doing business as All Saints Hospice), affiliates of BrightSpring Health Services, collectively, buyers, and Res-Care, Inc., as guarantor (the “BrightSpring Divestiture”). The scope of the Amedisys care centers to be divested pursuant to the BrightSpring Purchase Agreement is subject to change based upon ongoing discussions with the DOJ. Consummation of the BrightSpring Divestiture is contingent on a number of conditions, including approval by the DOJ and the consummation of the Merger, which itself is subject to a number of conditions as discussed below.

Additionally, on April 30, 2025, Amedisys, UnitedHealth Group and certain of their respective subsidiaries, collectively, sellers, entered into an agreement (the "Pennant Purchase Agreement") relating to the sale of certain Amedisys home health care centers and certain UnitedHealth Group care centers to Cornerstone Healthcare, Inc. and Tensaw River Healthcare, LLC, affiliates of The Pennant Group, collectively, buyers (the “Pennant Divestiture”). The scope of the Amedisys care centers to be divested pursuant to the Pennant Purchase Agreement is subject to change based upon ongoing discussions with the DOJ. Consummation of the Pennant Divestiture is contingent on a number of conditions, including approval by the DOJ and the consummation of the Merger, which itself is subject to a number of conditions as discussed below.

Subject to the terms and conditions set forth in the Merger Agreement, as modified by the Waiver, at the effective time of the Merger (the "Effective Time"), by virtue of the Merger: (i) each share of Amedisys common stock (“Amedisys Common Stock”) held in treasury by Amedisys or owned by UnitedHealth Group or Merger Sub or any of their respective subsidiaries, in each case, immediately prior to the Effective Time will be cancelled (collectively, “cancelled shares”) without consideration; and (ii) each share of Amedisys Common Stock, other than any cancelled shares, issued and outstanding immediately prior to

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

the Effective Time will be converted into the right to receive $101 per share in cash, without interest, less any applicable withholding taxes.

The Merger is subject to a number of conditions to closing as specified in the Merger Agreement, as modified by the Waiver. These closing conditions include, among others, (i) approval by Amedisys stockholders at the Amedisys Stockholders Meeting (as defined in the Merger Agreement) of the proposal to adopt the Merger Agreement, which approval was obtained on September 8, 2023; (ii) the expiration or termination of the applicable waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; (iii) the receipt of the required state regulatory approvals; (iv) the absence of any law or order that has the effect of enjoining or otherwise prohibiting the completion of the Merger; and (v) the expiration or early termination of the waiting period (and any extension thereof) applicable to the consummation of the transactions contemplated by the Merger Agreement under all applicable antitrust laws without the imposition by any governmental entity of any term, condition, obligation, requirement, limitation, prohibition, remedy, sanction or other action that has resulted in or would reasonably be expected to result in a Burdensome Condition (as defined in the Merger Agreement as modified by the Waiver).

See Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information on risks related to the proposed merger.

Termination of Option Care Health, Inc. ("OPCH") Merger Agreement

As previously disclosed in Amedisys’ Current Report on Form 8-K filed with the SEC on May 3, 2023 and its Quarterly Report on Form 10-Q filed with the SEC on May 4, 2023, Amedisys entered into an Agreement and Plan of Merger on May 3, 2023 (the “OPCH Merger Agreement”) with OPCH, a Delaware corporation, and Uintah Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of OPCH (“OPCH Merger Sub”). On June 26, 2023, Amedisys, OPCH and OPCH Merger Sub entered into the Termination Agreement (the “Termination Agreement”), pursuant to which the parties thereto agreed to terminate the OPCH Merger Agreement and grant mutual releases by the parties of all claims against the other parties based upon, arising from, in connection with or relating to the OPCH Merger Agreement. Pursuant to the terms of the Termination Agreement, each of the termination of the OPCH Merger Agreement and the mutual releases provided for in the Termination Agreement would become effective upon receipt by OPCH of a $106,000,000 termination fee payable by, or on behalf of, Amedisys within 24 hours of the execution of the Termination Agreement (i.e., before the market open on June 27, 2023). On June 26, 2023, following the execution of the Termination Agreement, UnitedHealth Group, on behalf of Amedisys, delivered funds to OPCH in an amount equal to $106,000,000, representing the termination fee payable to OPCH under the OPCH Merger Agreement and the Termination Agreement, satisfying the condition precedent to the effectiveness of the termination of the OPCH Merger Agreement and the releases contained in the Termination Agreement. If the Merger Agreement is terminated under certain specified circumstances set forth in the Merger Agreement (as modified by the Waiver), Amedisys may be required to reimburse UnitedHealth Group for the $106,000,000 termination fee that UnitedHealth Group, on Amedisys’ behalf, paid to OPCH, which may be in addition to the $125,000,000 termination fee payable by Amedisys to UnitedHealth Group in the event the Merger Agreement is terminated under certain specified circumstances. The $106,000,000 termination fee was recorded to other income (expense) within our condensed consolidated income statement with a corresponding liability to termination fee paid by UnitedHealth Group within our condensed consolidated balance sheet during the three-month period ended June 30, 2023.

Acquisitions

We complete acquisitions from time to time in order to pursue our strategy of increasing our market presence by expanding our service base and enhancing our position in certain geographic areas as a leading provider of home health, hospice and high acuity care services. The purchase price paid for acquisitions is negotiated through arm’s length transactions, with consideration based on our analysis of, among other things, comparable acquisitions and expected cash flows. Acquisitions are accounted for as purchases and are included in our condensed consolidated financial statements from their respective acquisition dates. Goodwill generated from acquisitions is recognized for the excess of the purchase price over tangible and identifiable intangible assets because of the expected contributions of the acquisitions to our overall corporate strategy. We typically engage outside appraisal firms to assist in the fair value determination of identifiable intangible assets and noncontrolling interest, if any, for significant acquisitions. The preliminary purchase price allocation is adjusted, as necessary, up to one year after the acquisition closing date if management obtains more information regarding asset valuation and liabilities assumed.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

5. LONG-TERM OBLIGATIONS

Long-term debt consists of the following for the periods indicated (amounts in millions):


	June 30, 2025		December 31, 2024
$450.0 million Term Loan; interest rate at Base Rate plus Applicable Rate or Term SOFR plus Applicable Rate (5.9% at June 30, 2025); due July 30, 2027	$	338.1	$	349.4
$550.0 million Revolving Credit Facility; interest only payments; interest rate at Base Rate plus Applicable Rate or Term SOFR plus Applicable Rate; due July 30, 2027	—		—
Finance leases	26.7		29.5
Principal amount of long-term obligations	364.8		378.9
Deferred debt issuance costs	(1.6)		(1.6)
	363.2		377.3
Current portion of long-term obligations	(36.8)		(38.0)
Long-term obligations, less current portion	$	326.4	$	339.3

Fourth Amended Credit Agreement

Our Credit Agreement provides for a senior secured credit facility in an initial aggregate principal amount of up to $1.0 billion, which includes a $550.0 million Revolving Credit Facility and a term loan facility with a principal amount of up to $450.0 million (the "Amended Term Loan Facility" and collectively with the Revolving Credit Facility, the "Amended Credit Facility").

On April 17, 2025, we entered into the Fourth Amendment to our Credit Agreement (as amended by the Fourth Amendment, the "Fourth Amended Credit Agreement"). Pursuant to the Fourth Amendment, the parties to the existing Credit Agreement (i) extended the maturity date of the Credit Facility from July 30, 2026 to July 30, 2027; (ii) added certain provisions for "Outbound Investment Rules" that relate to the regulations administered and enforced by the United States Treasury Department under U.S. Executive Order 14105 of August 9, 2023, or any similar law or regulation; and (iii) made certain other amendments to the existing Credit Agreement. In connection with our entry into the Fourth Amended Credit Agreement, we recorded $0.5 million in deferred debt issuance costs as long-term obligations, less current portion within our condensed consolidated balance sheet during the three-month period ended June 30, 2025.

The loans issued under the Amended Credit Facility bear interest on a per annum basis, at our election, at either: (i) the Base Rate plus the Applicable Rate or (ii) the Term SOFR plus the Applicable Rate. The “Base Rate” means a fluctuating rate per annum equal to the highest of (a) the federal funds rate plus 0.50% per annum, (b) the prime rate of interest established by the Administrative Agent, and (c) the Term SOFR plus 1% per annum. The “Term SOFR” means the quoted rate per annum equal to the SOFR for an interest period of one or three months (as selected by us) plus the SOFR adjustment of 0.10%. The “Applicable Rate” is based on the consolidated leverage ratio and is presented in the table below. As of June 30, 2025, the Applicable Rate is 0.50% per annum for Base Rate Loans and 1.50% per annum for Term SOFR Loans. We are also subject to a commitment fee and letter of credit fee under the terms of the Fourth Amended Credit Agreement, as presented in the table below.


Pricing Tier	Consolidated Leverage Ratio	Base Rate Loans	Term SOFR Loans and SOFR Daily Floating Rate Loans	Commitment Fee	Letter of Credit Fee
I	> 3.00 to 1.0	1.00%	2.00%	0.30%	1.75%
II	< 3.00 to 1.0 but > 2.00 to 1.0	0.75%	1.75%	0.25%	1.50%
III	< 2.00 to 1.0 but > 0.75 to 1.0	0.50%	1.50%	0.20%	1.25%
IV	< 0.75 to 1.0	0.25%	1.25%	0.15%	1.00%

The final maturity date of the Amended Credit Facility is July 30, 2027. The Revolving Credit Facility will terminate and be due and payable as of the final maturity date. The Amended Term Loan Facility, however, is subject to quarterly amortization of principal in the amount of 1.250% for the remainder of the term. The remaining balance of the Amended Term Loan Facility must be paid upon the final maturity date. In addition to the scheduled amortization of the Amended Term Loan Facility, and

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

subject to customary exceptions and reinvestment rights, we are required to prepay the Amended Term Loan Facility first and the Revolving Credit Facility second with 100% of all net cash proceeds received by any loan party or any subsidiary thereof in connection with (a) any asset sale or disposition where such loan party receives net cash proceeds in excess of $5 million or (b) any debt issuance that is not permitted under the Fourth Amended Credit Agreement.

The Fourth Amended Credit Agreement requires maintenance of two financial covenants: (i) a consolidated leverage ratio of funded indebtedness to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), as defined in the Fourth Amended Credit Agreement, and (ii) a consolidated interest coverage ratio of EBITDA to cash interest charges, as defined in the Fourth Amended Credit Agreement. Each of these covenants is calculated over rolling four-quarter periods and also is subject to certain exceptions and baskets. The Fourth Amended Credit Agreement also contains customary covenants, including, but not limited to, restrictions on: incurrence of liens, incurrence of additional debt, sales of assets and other fundamental corporate changes, investments and declarations of dividends. These covenants contain customary exclusions and baskets as detailed in the Fourth Amended Credit Agreement. As of June 30, 2025, we are in compliance with our covenants.

The Revolving Credit Facility is guaranteed by substantially all of our wholly-owned direct and indirect subsidiaries. The Fourth Amended Credit Agreement requires at all times that we (i) provide guarantees from wholly-owned subsidiaries that in the aggregate represent not less than 95% of our consolidated net revenues and adjusted EBITDA from all wholly-owned subsidiaries and (ii) provide guarantees from subsidiaries that in the aggregate represent not less than 70% of consolidated adjusted EBITDA, subject to certain exceptions.

As of June 30, 2025 and 2024, we had no outstanding borrowings under our $550.0 million Revolving Credit Facility. Our weighted average interest rate for borrowings under our Amended Term Loan Facility was 6.0% for the three and six-month periods ended June 30, 2025 and 7.3% for the three and six-month periods ended June 30, 2024.

As of June 30, 2025, our availability under our $550.0 million Revolving Credit Facility was $508.0 million as we have no outstanding borrowings and $42.0 million outstanding in letters of credit.

Finance Leases

Our outstanding finance leases totaling $26.7 million relate to leased equipment and fleet vehicles and bear interest rates ranging from 5.1% to 8.1%.

6. INCOME TAXES

We use the asset and liability approach for measuring deferred tax assets and liabilities based on temporary differences existing at each balance sheet date using currently enacted tax rates. Our deferred tax calculation requires us to make certain estimates about future operations. Deferred tax assets are reduced by a valuation allowance when we believe it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect of a change in tax rate is recognized as income or expense in the period that includes the enactment date.

Management regularly assesses the ability to realize deferred tax assets based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income. In the event future taxable income is below management’s estimates or is generated in tax jurisdictions different than projected, we could be required to increase the valuation allowance for deferred tax assets. This would result in an increase in our effective tax rate.

The recognition of income taxes at interim periods is completed using an estimated annual effective tax rate. The effective tax rate for the period is influenced by the relationship of the amount of “effective tax rate drivers” (i.e. non-deductible expenses, non-taxable income, tax credits, valuation allowance, uncertain tax positions, etc.) to income or loss before taxes. For the three and six-month periods ended June 30, 2025, the company incurred merger related expenses totaling $26.3 million and $43.0 million, respectively, which is a significant and unusual reduction to income before taxes and is inclusive of $25.4 million and $41.2 million, respectively, of “effective tax rate drivers.” For the three and six-month periods ended June 30, 2024, the company incurred merger related expenses totaling $11.9 million and $32.6 million, respectively, which is a significant and unusual reduction to income before taxes and is inclusive of $9.9 million and $27.1 million, respectively, of “effective tax rate drivers.” Consequently, for the three and six-month periods ended June 30, 2025 and 2024, the relationship between the “effective tax rate drivers” and income before taxes is distorted, resulting in an unusual effective tax rate.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. COMMITMENTS AND CONTINGENCIES

Legal Proceedings - Ongoing

We are involved in legal actions in the normal course of business, some of which seek monetary damages, including claims for punitive damages. Based on information available to us as of the date of this filing, we do not believe that these normal course actions, when finally concluded and determined, will have a material impact on our consolidated financial condition, results of operations or cash flows.

Legal fees related to all legal matters are expensed as incurred.

Third Party Audits - Ongoing

From time to time, in the ordinary course of business, we are subject to audits under various governmental programs in which third party firms engaged by CMS, including Recovery Audit Contractors (“RACs”), Zone Program Integrity Contractors (“ZPICs”), Uniform Program Integrity Contractors (“UPICs”), Program Safeguard Contractors (“PSCs”), Medicaid Integrity Contractors (“MICs”), Supplemental Medical Review Contractors (“SMRCs”), Comprehensive Error Rate Testing Contractors ("CERTs") and the Office of the Inspector General (“OIG”), conduct extensive reviews of claims data to identify potential improper payments. We cannot predict the ultimate outcome of any regulatory reviews or other governmental audits and investigations.

In July 2010, our subsidiary that provides hospice services in Florence, South Carolina received from a ZPIC a request for records regarding a sample of 30 beneficiaries who received services from the subsidiary during the period of January 1, 2008 through March 31, 2010 (the “Review Period”) to determine whether the underlying services met pertinent Medicare payment requirements. We acquired the hospice operations subject to this review on August 1, 2009; the Review Period covered time periods both before and after our ownership of these hospice operations. Based on the ZPIC’s findings for 16 beneficiaries, which were extrapolated to all claims for hospice services provided by the Florence subsidiary billed during the Review Period, on June 6, 2011, the Medicare Administrative Contractor (“MAC”) for the subsidiary issued a notice of overpayment seeking recovery from our subsidiary of an alleged overpayment. We disputed these findings, and our Florence subsidiary filed appeals through the Original Medicare Standard Appeals Process, in which we sought to have those findings overturned. An administrative law judge ("ALJ") hearing was held in early January 2015. On January 18, 2016, we received a letter referencing the ALJ hearing decision for the overpayment issued on June 6, 2011. The decision was partially favorable with a new overpayment amount of $3.7 million with a balance owed of $5.6 million, including interest, based on 9 disputed claims (originally 16). We filed an appeal to the Medicare Appeals Council on the remaining 9 disputed claims and also argued that the statistical method used to select the sample was not valid. No assurances can be given as to the timing or outcome of the Medicare Appeals Council decision. As of June 30, 2025, Medicare has withheld payments of $5.7 million (including additional interest) as part of their standard procedures once this level of the appeal process has been reached. In the event we are not able to recoup this alleged overpayment, we are entitled to be indemnified by the prior owners of the hospice operations for amounts relating to the period prior to August 1, 2009. On January 10, 2019, an arbitration panel from the American Health Lawyers Association determined that the prior owners' liability for their indemnification obligation was $2.8 million. This amount is recorded as an indemnity receivable within other assets in our condensed consolidated balance sheets.

In July 2016, the Company received a request for medical records from SafeGuard Services, L.L.C (“SafeGuard”), a ZPIC, related to services provided by some of the care centers that the Company acquired from Infinity Home Care, L.L.C. The review period covered time periods both before and after our ownership of the care centers, which were acquired on December 31, 2015. In August 2017, the Company received Requests for Repayment from Palmetto GBA, LLC ("Palmetto") regarding Infinity Home Care of Lakeland, LLC ("Lakeland Care Centers") and Infinity Home Care of Pinellas, LLC ("Clearwater Care Center"). The Palmetto letters were based on a statistical extrapolation performed by SafeGuard which alleged an overpayment of $34.0 million for the Lakeland Care Centers on a universe of 72 Medicare claims totaling $0.2 million in actual claims payments and an overpayment of $4.8 million for the Clearwater Care Center on a universe of 70 Medicare claims totaling $0.2 million in actual claims payments. As a result of partially successful Level I and Level II Administrative Appeals, the alleged overpayment for the Lakeland Care Centers was reduced to $26.0 million, and the alleged overpayment for the Clearwater Care Center was reduced to $3.3 million. The Company filed Level III Administrative Appeals, and the ALJ hearings regarding the Lakeland Request for Repayment and the Clearwater Request for Repayment were held in April 2022. The Company received the results of the ALJ hearings in June 2022. The ALJ decisions for both the Clearwater Care Center and the Lakeland Care Centers were partially favorable for the claims that were reviewed, but the extrapolations were upheld. The repayments for the Lakeland Care Centers totaling $34.3 million ($22.8 million extrapolated repayment plus

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

$11.5 million accrued interest) and the Clearwater Care Center totaling $3.7 million ($2.4 million extrapolated repayment plus $1.2 million accrued interest) were made during the year ended December 31, 2022. We expect to be indemnified by the prior owners, upon exhaustion of the parties' appeal rights, for approximately $10.9 million and have recorded this amount within other assets in our condensed consolidated balance sheets.

Insurance

We are obligated for certain costs associated with our insurance programs, including employee health, workers’ compensation, professional liability and fleet. While we maintain various insurance programs to cover these risks, we are self-insured for a substantial portion of our potential claims. We recognize our obligations associated with these costs, up to specified deductible limits in the period in which a claim is incurred, including with respect to both reported claims and claims incurred but not reported. These costs have generally been estimated based on historical data of our claims experience. Such estimates, and the resulting reserves, are reviewed and updated by us on a quarterly basis.

Our health insurance has an exposure limit of $1.5 million for any individual covered life. Our workers’ compensation insurance has a retention limit of $2.0 million per incident. Our professional liability insurance has a retention limit of $0.3 million per incident. Our fleet insurance has an exposure limit of $0.5 million per accident.

8. SEGMENT INFORMATION

Our operations involve servicing patients through our three reportable business segments: home health, hospice and high acuity care. Our home health segment delivers a wide range of services in the homes of individuals who may be recovering from surgery, have a chronic disability or terminal illness or need assistance with completing important tasks. Our hospice segment provides palliative care and comfort to terminally ill patients and their families. Our high acuity care segment delivers the essential elements of inpatient hospital, palliative and SNF care to patients in their homes. The “other” column in the following tables consists of costs relating to executive management and administrative support functions, primarily information services, accounting, finance, billing and collections, legal, compliance, risk management, procurement, marketing, clinical administration, training, human resources and administration.

The Company's chief operating decision maker ("CODM") is its Chief Executive Officer, Chief Operating Officer/Chief Financial Officer and Chief Strategy Officer. The CODM uses operating income of the reportable segments to evaluate financial performance and allocate resources. The operating income of each reportable segment includes an allocation of corporate expenses attributable to the specific segment as well as revenues and all other costs directly attributable to the specific segment. The CODM reviews the performance of each segment and adjusts the allocation of resources as needed to respond to changing market conditions and organizational priorities. Segment assets are not reviewed by the CODM and therefore are not disclosed below (amounts in millions).

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


	For the Three-Month Period Ended June 30, 2025
	Home Health		Hospice		High Acuity Care		Other(1)		Total
Net service revenue	$	396.2	$	215.0	$	10.7	$	—	$	621.9
Cost of service, inclusive of depreciation	232.0		109.1		7.4		—		348.5
General and administrative expenses	94.9		50.7		5.9		71.0		222.5
Depreciation and amortization	2.0		0.8		0.8		0.8		4.4
Impairment	—		—		—		0.9		0.9
Operating expenses	328.9		160.6		14.1		72.7		576.3
Operating income (loss)	$	67.3	$	54.4	$	(3.4)	$	(72.7)	$	45.6

	For the Three-Month Period Ended June 30, 2024
	Home Health		Hospice		High Acuity Care		Other(1)		Total
Net service revenue	$	377.4	$	204.0	$	9.8	$	—	$	591.2
Cost of service, inclusive of depreciation	216.0		104.6		6.4		—		327.0
General and administrative expenses	92.4		48.7		5.4		61.1		207.6
Depreciation and amortization	1.9		0.8		0.8		0.9		4.4
Operating expenses	310.3		154.1		12.6		62.0		539.0
Operating income (loss)	$	67.1	$	49.9	$	(2.8)	$	(62.0)	$	52.2

	For the Six-Month Period Ended June 30, 2025
	Home Health		Hospice		High Acuity Care		Other(1)		Total
Net service revenue	$	775.5	$	421.1	$	20.0	$	—	$	1,216.6
Cost of service, inclusive of depreciation	452.3		215.7		14.5		—		682.5
General and administrative expenses	189.6		100.4		11.0		134.5		435.5
Depreciation and amortization	4.0		1.6		1.7		1.5		8.8
Impairment	—		—		—		0.9		0.9
Operating expenses	645.9		317.7		27.2		136.9		1,127.7
Operating income (loss)	$	129.6	$	103.4	$	(7.2)	$	(136.9)	$	88.9

	For the Six-Month Period Ended June 30, 2024
	Home Health		Hospice		High Acuity Care		Other(1)		Total
Net service revenue	$	741.4	$	405.0	$	16.2	$	—	$	1,162.6
Cost of service, inclusive of depreciation	426.4		209.9		12.2		—		648.5
General and administrative expenses	183.4		96.8		11.3		130.1		421.6
Depreciation and amortization	3.7		1.5		1.7		1.8		8.7
Operating expenses	613.5		308.2		25.2		131.9		1,078.8
Operating income (loss)	$	127.9	$	96.8	$	(9.0)	$	(131.9)	$	83.8

(1) General and administrative expenses for our corporate support function includes $26.3 million and $43.0 million in merger-related expenses for the three and six-month periods ended June 30, 2025, respectively, and $11.9 million and $32.6 million in merger-related expenses for the three and six-month periods ended June 30, 2024, respectively.

AMEDISYS, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. RELATED PARTY TRANSACTIONS

Prior to March 18, 2025, we had an investment in Medalogix, a healthcare predictive data and analytics company, which was accounted for under the equity method of accounting. We incurred costs of approximately $2.7 million during the period January 1, 2025 through March 17, 2025 and $3.2 million and $6.1 million during the three and six-month periods ended June 30, 2024, respectively, in connection with our usage of Medalogix's analytics platforms.

Effective March 18, 2025, Medalogix was combined with a healthcare referral and workflow management company, creating a new company, which is accounted for under the equity method of accounting (see Note 3 - Investments for additional information). We incurred costs of approximately $4.5 million and $5.1 million during the three-month period ended June 30, 2025 and the period March 18, 2025 through June 30, 2025 in connection with our usage of these platforms.

We have an investment in a technology-enabled clinician sourcing application, which is accounted for under the cost method of accounting. We incurred costs of approximately $0.6 million and $1.4 million during the three and six-month periods ended June 30, 2025, respectively, and $0.2 million and $0.5 million during the three and six-month periods ended June 30, 2024, respectively, in connection with our usage of the technology-enabled clinician sourcing application's services.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis provides information we believe is relevant to an assessment and understanding of our results of operations and financial condition for the three and six-month periods ended June 30, 2025. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included herein, and the consolidated financial statements and notes and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025 (the “Form 10-K”). Historical results that appear in the condensed consolidated financial statements should not be interpreted as being indicative of future operations.

Unless otherwise provided, “Amedisys,” “we,” “our,” and “the Company” refer to Amedisys, Inc. and our consolidated subsidiaries.

Overview

We are a provider of high-quality in-home healthcare and related services to the chronic, co-morbid, aging American population with approximately 68% of our consolidated net service revenue derived from Medicare for the three and six-month periods ended June 30, 2025, and approximately 69% and 70% of our consolidated net service revenue derived from Medicare for the three and six-month periods ended June 30, 2024, respectively.

Our operations involve servicing patients through our three reportable business segments: home health, hospice and high acuity care. Our home health segment delivers a wide range of services in the homes of individuals who may be recovering from an illness, injury or surgery. Our hospice segment provides care that is designed to provide comfort and support for those who are facing a terminal illness. Our high acuity care segment delivers the essential elements of inpatient hospital, palliative and skilled nursing facility ("SNF") care to patients in their homes. As of June 30, 2025, we owned and operated 347 Medicare-certified home health care centers, 164 Medicare-certified hospice care centers and 8 admitting high acuity care joint ventures in 38 states within the United States and the District of Columbia.

Proposed Merger

On June 26, 2023, Amedisys, UnitedHealth Group Incorporated, a Delaware corporation ("UnitedHealth Group"), and Aurora Holdings Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of UnitedHealth Group ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which Merger Sub will merge with and into Amedisys with Amedisys continuing as the surviving corporation and becoming a wholly owned subsidiary of UnitedHealth Group (the “Merger”).

Due to these conditions, events and other contingencies, there can be no assurance that the Merger will be successfully completed. During the periods prior to and including the date of the closing of the Merger, we expect to incur significant additional merger-related expenses.

See Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information on risks related to the proposed merger.

Termination of Option Care Health, Inc. ("OPCH") Merger Agreement

entered into the Termination Agreement (the “Termination Agreement”), pursuant to which the parties thereto agreed to terminate the OPCH Merger Agreement and grant mutual releases by the parties of all claims against the other parties based upon, arising from, in connection with or relating to the OPCH Merger Agreement. Pursuant to the terms of the Termination Agreement, each of the termination of the OPCH Merger Agreement and the mutual releases provided for in the Termination Agreement would become effective upon receipt by OPCH of a $106,000,000 termination fee payable by, or on behalf of, Amedisys within 24 hours of the execution of the Termination Agreement (i.e., before the market open on June 27, 2023). On June 26, 2023, following the execution of the Termination Agreement, UnitedHealth Group, on behalf of Amedisys, delivered funds to OPCH in an amount equal to $106,000,000, representing the termination fee payable to OPCH under the OPCH Merger Agreement and the Termination Agreement, satisfying the condition precedent to the effectiveness of the termination of the OPCH Merger Agreement and the releases contained in the Termination Agreement. If the Merger Agreement is terminated under certain specified circumstances set forth in the Merger Agreement (as modified by the Waiver), Amedisys may be required to reimburse UnitedHealth Group for the $106,000,000 termination fee that UnitedHealth Group, on Amedisys' behalf, paid to OPCH, which may be in addition to the $125,000,000 termination fee payable by Amedisys to UnitedHealth Group in the event the Merger Agreement is terminated under certain specified circumstances. The $106,000,000 termination fee was recorded to other income (expense) within our condensed consolidated income statement with a corresponding liability to termination fee paid by UnitedHealth Group within our condensed consolidated balance sheet during the three-month period ended June 30, 2023.

The Centers for Medicare and Medicaid Services ("CMS") Payment Updates

Hospice

On July 30, 2024, CMS issued the final rule to update hospice payment rates and the wage index for fiscal year 2025, effective for services provided beginning October 1, 2024. CMS estimated hospices serving Medicare beneficiaries would see a 2.9% increase in payments. This increase was the result of a 3.4% market basket adjustment as required under the Patient Protection and Affordable Healthcare Act and the Health Care and Education Reconciliation Act ("PPACA") less a 0.5% productivity adjustment. Additionally, CMS increased the aggregate cap amount by 2.9% to $34,465. Based on our analysis of the final rule, we expect our impact to be in line with the 2.9% increase.

On April 11, 2025, CMS issued a proposed rule to update hospice payment rates and the wage index for fiscal year 2026, effective for services provided beginning October 1, 2025. CMS estimates hospices serving Medicare beneficiaries will see a 2.4% increase in payments. This increase is the result of a 3.2% market basket adjustment as required under PPACA less a 0.8% productivity adjustment. Additionally, CMS proposed to increase the aggregate cap amount by 2.4% to $35,293. Based on our analysis of the proposed rule, we expect our impact to be in line with the 2.4% increase.

Home Health

On November 1, 2024, CMS issued the Calendar Year ("CY") 2025 Final Rule for Medicare home health providers. CMS estimated that the final rule would result in a 0.5% increase in payments to home health providers. This increase was the result of a 2.7% payment update (3.2% market basket adjustment less a 0.5% productivity adjustment) offset by a decrease of 0.4% for the update to the fixed-dollar loss ratio used in determining outlier payments and a permanent adjustment of -1.8% based on the difference between assumed and actual behavior changes resulting from the implementation of the Patient-Driven Groupings Model ("PDGM"). Based on our analysis of the final rule, we expect our impact to be in line with the 0.5% increase.

On June 30, 2025, CMS issued the CY 2026 Proposed Rule for Medicare home health providers. CMS estimates that the proposed rule will result in a 6.4% decrease in payments to home health providers. This decrease is the result of a permanent adjustment of -3.7% based on the difference between assumed and actual behavior changes resulting from the implementation of PDGM, a temporary adjustment of -4.6% related to overpayments in the years 2020 - 2024 as calculated by CMS and an adjustment of -0.5% for the update to the fixed-dollar loss ratio used in determining outlier payments. These items are partially offset by a +2.4% payment update (3.2% market basket adjustment less a 0.8% productivity adjustment). Based on our analysis of the proposed rule, we expect our impact to be in line with the 6.4% decrease. Amedisys is partnering with our industry advocates, lobbying firms and others to share comments with CMS on the proposed rule.

Results of Operations

Three-Month Period Ended June 30, 2025 Compared to the Three-Month Period Ended June 30, 2024

Consolidated

The following table summarizes our consolidated results of operations (amounts in millions):


	For the Three-Month Periods Ended June 30,
	2025			2024
Net service revenue	$	621.9		$	591.2
Cost of service, inclusive of depreciation	348.5			327.0
Gross margin	273.4			264.2
% of revenue	44.0		%	44.7		%
General and administrative expenses	222.5			207.6
% of revenue	35.8		%	35.1		%
Depreciation and amortization	4.4			4.4
Impairment	0.9			—
Operating income	45.6			52.2
Total other income (expense), net	2.7			(3.0)
Income tax expense	(19.3)			(16.6)
Effective income tax rate	39.9		%	33.8		%
Net income	29.1			32.6
Net income attributable to noncontrolling interests	(1.0)			(0.3)
Net income attributable to Amedisys, Inc.	$	28.1		$	32.3

On a consolidated basis, our operating income decreased $7 million on a $31 million increase in net service revenue. Our year-over-year results were impacted by a $14 million increase in our merger-related expenses ($26 million in 2025; $12 million in 2024). Excluding our merger-related expenses, our operating income increased $7 million on a $31 million increase in net service revenue due to rate increases and growth in volume partially offset by planned wage increases, a shift in our home health payor mix, employee-related insurance costs and a non-cash impairment charge on a cost method investment.

Our operating results reflect a $15 million increase in our general and administrative expenses compared to the prior year. Excluding the increase in our merger-related expenses ($14 million), our general and administrative expenses increased $1 million due to planned wage increases and higher information technology costs partially offset by lower legal fees and a reduction in corporate support costs.

Total other income (expense), net includes the following items (amounts in millions):


	For the Three-Month Periods Ended June 30,
	2025		2024
Interest income	$	3.0	$	1.6
Interest expense	(6.4)		(7.9)
Equity in earnings from equity method investments	1.6		1.5
Miscellaneous, net(1)	4.5		1.8
Total other income (expense), net	$	2.7	$	(3.0)

(1) Miscellaneous, net includes a $3.5 million adjustment to the carrying value of noncontrolling interest recorded in connection with the termination of one of our high acuity care joint ventures.

Home Health Segment

The following table summarizes our home health segment results of operations:


	For the Three-Month Periods Ended June 30,
	2025			2024
Financial Information (in millions):
Medicare	$	215.1		$	216.1
Non-Medicare	181.1			161.3
Net service revenue	396.2			377.4
Cost of service, inclusive of depreciation	232.0			216.0
Gross margin	164.2			161.4
General and administrative expenses	94.9			92.4
Depreciation and amortization	2.0			1.9
Operating income	$	67.3		$	67.1
Same Store Growth(1):
Medicare revenue	—		%	(2		%)
Non-Medicare revenue	12		%	24		%
Total admissions	6		%	13		%
Total volume(2)	6		%	9		%


Key Statistical Data - Total(3):
Admissions	117,002			110,188
Recertifications	48,840			46,170
Total volume	165,842			156,358

Medicare completed episodes	72,245			73,000
Average Medicare revenue per completed episode(4)	$	3,058		$	3,036
Medicare visits per completed episode(5)	12.0			12.2

Visiting clinician cost per visit	$	108.13		$	106.00
Clinical manager cost per visit	12.52			11.89
Total cost per visit	$	120.65		$	117.89
Visits	1,922,747			1,831,990

(1)Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.

(2)Total volume includes all admissions and recertifications.

(3)Total includes acquisitions, startups and de novos.

(4)Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.

(5)Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period.

Operating Results

Overall, our operating income remained flat on a $19 million increase in net service revenue as volume growth and the increase in Medicare reimbursement effective January 1, 2025 were offset by a shift in our payor mix, planned wage increases, employee-related insurance costs and an increase in our general and administrative expenses.

Net Service Revenue

Our net service revenue increased $19 million as a result of same store total volume growth of 6% and the increase in Medicare reimbursement effective January 1, 2025 partially offset by a shift in our payor mix.

Cost of Service, Inclusive of Depreciation

Our cost of service consists of costs associated with direct clinician care in the homes of our patients as well as the cost of clinical managers who monitor the overall delivery of care and certified coders. Overall, our total cost of service increased 7% due to a 2% increase in our total cost per visit and a 5% increase in total visits year over year. The 2% increase in our total cost per visit is primarily due to planned wage increases, wage inflation, employee-related insurance costs and an increase in contract clinicians, salaried clinicians and clinical managers.

General and Administrative Expenses

Our general and administrative expenses increased $3 million due to planned wage increases and higher information technology costs.

Hospice Segment

The following table summarizes our hospice segment results of operations:


	For the Three-Month Periods Ended June 30,
	2025			2024
Financial Information (in millions):
Medicare	$	205.1		$	193.7
Non-Medicare	9.9			10.3
Net service revenue	215.0			204.0
Cost of service, inclusive of depreciation	109.1			104.6
Gross margin	105.9			99.4
General and administrative expenses	50.7			48.7
Depreciation and amortization	0.8			0.8
Operating income	$	54.4		$	49.9
Same Store Growth(1):
Medicare revenue	6		%	3		%
Hospice admissions	—		%	(2		%)
Average daily census	1		%	—		%
Key Statistical Data - Total(2):
Hospice admissions	12,172			12,124
Average daily census	13,132			12,968
Revenue per day, net	$	179.96		$	172.88
Cost of service per day	$	91.36		$	88.65
Average discharge length of stay	93			90

(1)Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.

(2)Total includes acquisitions and de novos.

Operating Results

Overall, our operating income increased $5 million on an $11 million increase in net service revenue primarily due to the increase in reimbursement effective October 1, 2024 and average daily census growth partially offset by planned wage increases and an increase in our general and administrative expenses.

Net Service Revenue

Our net service revenue increased $11 million primarily due to the increase in reimbursement effective October 1, 2024 and a 1% increase in our average daily census.

Cost of Service, Inclusive of Depreciation

Our hospice cost of service increased 4% primarily due to a 3% increase in our cost of service per day and a 1% increase in our hospice days. The increase in our cost of service per day is primarily due to planned wage increases, wage inflation and investments in hospice clincal staffing.

General and Administrative Expenses

Our general and administrative expenses increased $2 million primarily due to planned wage increases and higher information technology costs.

High Acuity Care Segment

The following table summarizes our high acuity care segment results of operations:


	For the Three-Month Periods Ended June 30,
	2025			2024
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare	10.7			9.8
Net service revenue	10.7			9.8
Cost of service, inclusive of depreciation	7.4			6.4
Gross margin	3.3			3.4
General and administrative expenses	5.9			5.4
Depreciation and amortization	0.8			0.8
Operating loss	$	(3.4)		$	(2.8)
Key Statistical Data - Total:
Full risk admissions	225			157
Limited risk admissions	848			675
Total admissions	1,073			832
Total admissions growth	29		%	56		%

Full risk revenue per episode	$	11,311		$	10,124
Limited risk revenue per episode	$	6,700		$	6,816

Number of admitting joint ventures	8			9

Operating Results

Our operating loss increased despite an increase in our net service revenue due to lower savings on our risk-based palliative care contract compared to prior year as well as severance costs recorded in connection with the termination of one of our joint ventures.

We expect our high acuity care segment to continue to generate operating losses; however, we also expect improvement as we leverage our operating structure.

Net Service Revenue

Our net service revenue increased as a result of growth in our home recovery care and palliative care services partially offset by lower savings on our risk-based palliative care contract compared to prior year. Our high acuity care segment achieved its highest total admissions volume since inception during the three-month period ended June 30, 2025.

Cost of Service, Inclusive of Depreciation

Our cost of service consists primarily of medical costs associated with direct clinician care provided to our patients during the applicable episode period, costs associated with our virtual care unit which enables us to provide monitoring services and facilitates virtual patient rounding visits via telehealth and costs associated with resources to support our risk-based palliative care at home contract as well as other palliative care arrangements. The increase in cost of service over prior year is related to growth in volume.

General and Administrative Expenses

Our general and administrative expenses, which primarily consist of salaries and benefits and incentive compensation costs, increased $0.5 million.

Corporate

The following table summarizes our corporate results of operations:


	For the Three-Month Periods Ended June 30,
	2025		2024
Financial Information (in millions):
General and administrative expenses	$	71.0	$	61.1
Depreciation and amortization	0.8		0.9
Impairment	0.9		—
Total operating expenses	$	72.7	$	62.0

Corporate expenses consist of costs related to our executive management and corporate and administrative support functions, primarily information services, accounting, finance, billing and collections, legal, compliance, risk management, procurement, marketing, clinical administration, training, human resources and administration.

Corporate general and administrative expenses increased $10 million year over year, which is inclusive of a $14 million increase in merger-related expenses. Excluding our merger-related expenses, our corporate general and administrative expenses decreased $4 million primarily due to lower legal fees and a reduction in corporate support costs partially offset by planned wage increases.

Six-Month Period Ended June 30, 2025 Compared to the Six-Month Period Ended June 30, 2024

Consolidated

The following table summarizes our consolidated results of operations (amounts in millions):


	For the Six-Month Periods Ended June 30,
	2025			2024
Net service revenue	$	1,216.6		$	1,162.6
Cost of service, inclusive of depreciation	682.5			648.5
Gross margin	534.1			514.1
% of revenue	43.9		%	44.2		%
General and administrative expenses	435.5			421.6
% of revenue	35.8		%	36.3		%
Depreciation and amortization	8.8			8.7
Impairment	0.9			—
Operating income	88.9			83.8
Total other income (expense), net	50.6			(7.4)
Income tax expense	(48.6)			(29.3)
Effective income tax rate	34.9		%	38.3		%
Net income	90.9			47.2
Net income attributable to noncontrolling interests	(1.8)			(0.5)
Net income attributable to Amedisys, Inc.	$	89.1		$	46.7

On a consolidated basis, our operating income increased $5 million on a $54 million increase in net service revenue. Our year-over-year results were impacted by a $10 million increase in our merger-related expenses ($43 million in 2025; $33 million in 2024). Excluding our merger-related expenses, our operating income increased $15 million on a $54 million increase in net service revenue due to rate increases and growth in volume partially offset by planned wage increases, a shift in our home health payor mix, employee-related insurance costs, an increase in our general and administrative expenses and a non-cash impairment charge on a cost method investment.

Our operating results reflect a $14 million increase in our general and administrative expenses compared to the prior year. Excluding the increase in our merger-related expenses ($10 million), our general and administrative expenses increased $4 million due to planned wage increases, employee-related insurance costs and higher information technology costs partially offset by lower legal fees and incentive compensation costs as well as a reduction in corporate support costs.

Total other income (expense), net includes the following items (amounts in millions):


	For the Six-Month Periods Ended June 30,
	2025		2024
Interest income	$	5.9	$	3.3
Interest expense	(12.8)		(16.0)
Equity in earnings from equity method investments	3.4		2.4
Gain on equity method investment(1)	48.1		—
Miscellaneous, net(2)	6.0		2.9
Total other income (expense), net	$	50.6	$	(7.4)

(1) During the three-month period ended March 31, 2025, a third-party acquired a majority of the membership interests of a newly formed entity which included one of our equity method investments, Medalogix, as well as a healthcare referral and workflow management company. We rolled 100% of our ownership interest in Medalogix into the newly formed entity, and in connection with the transaction, we recognized a $48.1 million gain based on the fair value of our equity in Medalogix upon executing the transaction.

(2) Miscellaneous, net includes a $3.5 million adjustment to the carrying value of noncontrolling interest recorded during the three-month period ended June 30, 2025 in connection with the termination of one of our high acuity care joint ventures.

Home Health Segment

The following table summarizes our home health segment results of operations:


	For the Six-Month Periods Ended June 30,
	2025			2024
Financial Information (in millions):
Medicare	$	426.3		$	431.9
Non-Medicare	349.2			309.5
Net service revenue	775.5			741.4
Cost of service, inclusive of depreciation	452.3			426.4
Gross margin	323.2			315.0
General and administrative expenses	189.6			183.4
Depreciation and amortization	4.0			3.7
Operating income	$	129.6		$	127.9
Same Store Growth(1):
Medicare revenue	(1		%)	(1		%)
Non-Medicare revenue	13		%	20		%
Total admissions	6		%	12		%
Total volume(2)	6		%	8		%


Key Statistical Data - Total(3):
Admissions	236,598			222,403
Recertifications	93,190			90,131
Total volume	329,788			312,534

Medicare completed episodes	142,116			145,998
Average Medicare revenue per completed episode(4)	$	3,034		$	3,017
Medicare visits per completed episode(5)	11.8			12.0

Visiting clinician cost per visit	$	107.95		$	105.68
Clinical manager cost per visit	12.81			11.95
Total cost per visit	$	120.76		$	117.63
Visits	3,745,134			3,624,619

(2)Total volume includes all admissions and recertifications.

(3)Total includes acquisitions, startups and de novos.

(4)Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.

(5)Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period.

Operating Results

Overall, our operating income increased $2 million on a $34 million increase in net service revenue primarily due to volume growth and the increase in Medicare reimbursement effective January 1, 2025. These items were partially offset by a shift in our payor mix, planned wage increases, employee-related insurance costs and an increase in our general and administrative expenses.

Net Service Revenue

Our net service revenue increased $34 million as a result of same store total volume growth of 6% and the increase in Medicare reimbursement effective January 1, 2025 partially offset by a shift in our payor mix.

Cost of Service, Inclusive of Depreciation

Overall, our total cost of service increased 6% due to a 3% increase in our total cost per visit and a 3% increase in total visits year over year. The 3% increase in our total cost per visit is primarily due to planned wage increases, wage inflation, employee-related insurance costs and an increase in contract clinicians, salaried clinicians and clinical managers.

General and Administrative Expenses

Our general and administrative expenses increased $6 million due to planned wage increases, employee-related insurance costs and higher information technology costs partially offset by lower incentive compensation costs.

Hospice Segment

The following table summarizes our hospice segment results of operations:


	For the Six-Month Periods Ended June 30,
	2025			2024
Financial Information (in millions):
Medicare	$	402.0		$	383.7
Non-Medicare	19.1			21.3
Net service revenue	421.1			405.0
Cost of service, inclusive of depreciation	215.7			209.9
Gross margin	205.4			195.1
General and administrative expenses	100.4			96.8
Depreciation and amortization	1.6			1.5
Operating income	$	103.4		$	96.8
Same Store Growth(1):
Medicare revenue	5		%	3		%
Hospice admissions	2		%	(2		%)
Average daily census	1		%	—		%
Key Statistical Data - Total(2):
Hospice admissions	25,290			24,781
Average daily census	12,947			12,867
Revenue per day, net	$	179.73		$	172.96
Cost of service per day	$	92.05		$	89.63
Average discharge length of stay	93			91

(2)Total includes acquisitions and de novos.

Operating Results

Overall, our operating income increased $7 million on a $16 million increase in net service revenue primarily due to the increase in reimbursement effective October 1, 2024 and average daily census growth partially offset by planned wage increases, one less calendar day in 2025 versus 2024 and an increase in our general and administrative expenses.

Net Service Revenue

Our net service revenue increased $16 million primarily due to the increase in reimbursement effective October 1, 2024 and a 1% increase in our average daily census partially offset by one less calendar day in 2025 versus 2024.

Cost of Service, Inclusive of Depreciation

Our hospice cost of service increased 3% primarily due to a 3% increase in our cost of service per day resulting from planned wage increases, wage inflation and investments in hospice clinical staffing.

General and Administrative Expenses

Our general and administrative expenses increased $4 million primarily due to planned wage increases, employee-related insurance costs and higher information technology costs.

High Acuity Care Segment

The following table summarizes our high acuity care segment results of operations:


	For the Six-Month Periods Ended June 30,
	2025			2024
Financial Information (in millions):
Medicare	$	—		$	—
Non-Medicare	20.0			16.2
Net service revenue	20.0			16.2
Cost of service, inclusive of depreciation	14.5			12.2
Gross margin	5.5			4.0
General and administrative expenses	11.0			11.3
Depreciation and amortization	1.7			1.7
Operating loss	$	(7.2)		$	(9.0)
Key Statistical Data - Total:
Full risk admissions	502			296
Limited risk admissions	1,570			1,297
Total admissions	2,072			1,593
Total admissions growth	30		%	38		%

Full risk revenue per episode	$	11,131		$	10,100
Limited risk revenue per episode	$	6,691		$	6,799

Number of admitting joint ventures	8			9

Operating Results

Our year over year results were impacted by growth in our home recovery care and palliative care services partially offset by lower savings on our risk-based palliative care contract compared to prior year.

We expect our high acuity care segment to continue to generate operating losses; however, we also expect improvement as we leverage our operating structure.

Net Service Revenue

Cost of Service, Inclusive of Depreciation

The increase in cost of service over prior year is related to growth in volume.

General and Administrative Expenses

Our general and administrative expenses, which primarily consist of salaries and benefits and incentive compensation costs, were relatively flat year over year.

Corporate

The following table summarizes our corporate results of operations:


	For the Six-Month Periods Ended June 30,
	2025		2024
Financial Information (in millions):
General and administrative expenses	$	134.5	$	130.1
Depreciation and amortization	1.5		1.8
Impairment	0.9		—
Total operating expenses	$	136.9	$	131.9

Corporate general and administrative expenses increased $4 million year over year, which is inclusive of an increase in merger-related expenses totaling $10 million. Excluding our merger-related expenses, our corporate general and administrative expenses decreased $6 million primarily due to lower legal fees and incentive compensation costs as well as a reduction in corporate support costs partially offset by planned wage increases.

Liquidity and Capital Resources

Cash Flows

The following table summarizes our cash flows for the periods indicated (amounts in millions):


	For the Six-Month Periods Ended June 30,
	2025		2024
Cash provided by operating activities	$	63.5	$	45.7
Cash used in investing activities	(2.3)		(4.6)
Cash used in financing activities	(27.1)		(22.6)
Net increase in cash, cash equivalents and restricted cash	34.1		18.5
Cash, cash equivalents and restricted cash at beginning of period	303.2		138.9
Cash, cash equivalents and restricted cash at end of period	$	337.3	$	157.4

Our operating cash flow increased $18 million during the six-month period ended June 30, 2025 compared to the six-month period ended June 30, 2024 primarily due to delays in the billing and collection of accounts receivable in prior year resulting from the Change Healthcare outage described below under "Liquidity." Additionally, current year operating cash flow was impacted by the timing of the payment of accounts payable and accrued expenses.

Our investing activities primarily consist of the purchase of property and equipment, technology assets and investments. Cash used in investing activities totaled $2 million and $5 million during the six-month periods ended June 30, 2025 and 2024, respectively, and was primarily related to the purchase of property and equipment and investments in technology assets.

Our financing activities primarily consist of borrowings under our term loan and/or revolving credit facility, repayments of borrowings, the remittance of taxes associated with shares withheld on non-cash compensation, proceeds related to the exercise of stock options and noncontrolling interest contributions and distributions. Cash used in financing activities totaled $27 million and $23 million during the six-month periods ended June 30, 2025 and 2024, respectively, and was primarily related to the repayment of borrowings and the remittance of taxes associated with shares withheld on non-cash compensation.

Liquidity

Typically, our principal source of liquidity is the collection of our patient accounts receivable, primarily through the Medicare program. In addition to our collection of patient accounts receivable, from time to time, we can and do obtain additional sources of liquidity by the incurrence of additional indebtedness.

The Company utilizes Change Healthcare, a subsidiary of UnitedHealth Group, to submit patient claims to Medicare and all other payors for reimbursement. On February 22, 2024, UnitedHealth Group announced that on February 21, 2024, Change Healthcare’s information technology systems were impacted by a cybersecurity incident. The Change Healthcare cybersecurity incident delayed the submission of patient claims to certain non-Medicare payors which resulted in a reduction in our operating cash flow and an increase in our accounts receivable during the first and second quarters of 2024. There was minimal impact to our Medicare claim submissions as we were able to quickly redirect our Medicare claims to an alternative clearinghouse. The buildup in accounts receivable resulting from the Change Healthcare outage was substantially resolved by the third quarter of 2024.

During the six-month period ended June 30, 2025, we spent $2 million in capital expenditures and investments in technology assets as compared to $4 million during the six-month period ended June 30, 2024. Our capital expenditures and investments in technology assets for 2025 are expected to be approximately $4 million to $6 million, excluding the impact of any future acquisitions.

As of June 30, 2025, we had $337.3 million in cash and cash equivalents and $508.0 million in availability under our $550.0 million Revolving Credit Facility.

Based on our operating forecasts and our debt service requirements, we believe we will have sufficient liquidity to fund our operations, capital requirements and debt service requirements for the next twelve months and beyond.

Outstanding Patient Accounts Receivable

Our patient accounts receivable decreased slightly from December 31, 2024. Our cash collections as a percentage of revenue was 101% and 97% for the six-month periods ended June 30, 2025 and 2024, respectively. Our days revenue outstanding at June 30, 2025 was 40.9 days, which is a decrease of 2.1 days from December 31, 2024 and a decrease of 11.2 days when compared to June 30, 2024, which was impacted by the Change Healthcare outage described above.

Our patient accounts receivable includes unbilled receivables which are aged based upon the initial service date. We monitor unbilled receivables on a care center by care center basis to ensure that all efforts are made to bill claims within timely filing deadlines. Our unbilled patient accounts receivable may be impacted by pre-claim reviews in the Review Choice Demonstration states, reviews under the Targeted Probe and Educate program, voluntary pre-bill edits and reviews, efforts to secure needed documentation to bill (orders, consents, etc.), integrations of acquisitions, changes of ownership and any regulatory and procedural updates impacting claim submission. The timely filing deadline for Medicare is one year from the date of the last billable service in the 30-day billing period and varies by state for Medicaid-reimbursable services and among insurance companies and other private payors.

The following schedules detail our patient accounts receivable, by payor class, aged based upon initial date of service (amounts in millions, except days revenue outstanding):


	0-90		91-180		181-365		Over 365		Total
At June 30, 2025:
Medicare patient accounts receivable	$	174.6	$	6.8	$	0.9	$	—	$	182.3
Other patient accounts receivable:
Medicaid	20.2		1.7		1.2		—		23.1
Private	81.1		8.1		0.9		—		90.1
Total	$	101.3	$	9.8	$	2.1	$	—	$	113.2
Total patient accounts receivable									$	295.5
Days revenue outstanding (1)									40.9
	0-90		91-180		181-365		Over 365		Total
At December 31, 2024:
Medicare patient accounts receivable	$	178.6	$	9.7	$	0.9	$	—	$	189.2
Other patient accounts receivable:
Medicaid	19.9		2.0		0.9		—		22.8
Private	76.3		7.0		0.8		—		84.1
Total	$	96.2	$	9.0	$	1.7	$	—	$	106.9
Total patient accounts receivable									$	296.1
Days revenue outstanding (1)									43.0

(1)Our calculation of days revenue outstanding is derived by dividing our ending patient accounts receivable at June 30, 2025 and December 31, 2024 by our average daily net service revenue for the three-month periods ended June 30, 2025 and December 31, 2024, respectively.

Indebtedness

Fourth Amended Credit Agreement

On April 17, 2025, we entered into the Fourth Amendment to our Credit Agreement (as amended by the Fourth Amendment, the "Fourth Amended Credit Agreement"). Pursuant to the Fourth Amendment, the parties to the existing Credit Agreement (i) extended the maturity date of the Credit Facility from July 30, 2026 to July 30, 2027; (ii) added certain provisions for “Outbound Investment Rules” that relate to the regulations administered and enforced by the United States Treasury Department under U.S. Executive Order 14105 of August 9, 2023, or any similar law or regulation; and (iii) made certain other amendments to the existing Credit Agreement.

As of June 30, 2025, our availability under our $550.0 million Revolving Credit Facility was $508.0 million as we have no outstanding borrowings and $42.0 million outstanding in letters of credit. We are in compliance with our covenants under the Fourth Amended Credit Agreement.

See Note 5 - Long-Term Obligations to our condensed consolidated financial statements for additional details on our outstanding long-term obligations.

Inflation

Our operations have been materially impacted by the current inflationary environment as we have experienced inflation in our labor costs and healthcare costs. We expect inflation to continue to impact our operations in 2025. As of June 30, 2025, the impacts of inflation on our results of operations have been partially mitigated by rate increases and reorganization initiatives. No assurance can be given as to our ability to offset the impacts of inflation in the future.

Critical Accounting Estimates

See Part II, Item 7 – Critical Accounting Estimates and our consolidated financial statements and related notes in Part II, Item 8 of our 2024 Annual Report on Form 10-K for accounting policies and related estimates we believe are the most critical to understanding our condensed consolidated financial statements, financial condition and results of operations and which require complex management judgment and assumptions or involve uncertainties. These critical accounting estimates include revenue recognition, business combinations and goodwill and other intangible assets. There have not been any changes to our significant accounting policies or their application since we filed our 2024 Annual Report on Form 10-K.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk from fluctuations in interest rates. Our Term Loan and Revolving Credit Facility carry a floating interest rate which is tied to the Secured Overnight Financing Rate ("SOFR") and the Prime Rate, and therefore, our condensed consolidated income statements and our condensed consolidated statements of cash flows are exposed to changes in interest rates. As of June 30, 2025, the total amount of outstanding debt subject to interest rate fluctuations was $338.1 million. A 1.0% interest rate change would cause interest expense to change by approximately $3.4 million annually, assuming the Company makes no principal repayments.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We have established disclosure controls and procedures which are designed to provide reasonable assurance of achieving their objectives and to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, disclosed and reported within the time periods specified in the SEC's rules and forms. This information is also accumulated and communicated to our management and Board of Directors to allow timely decisions regarding required disclosure.

In connection with the preparation of this Quarterly Report on Form 10-Q, as of June 30, 2025, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined under Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act.

Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, the end of the period covered by this Quarterly Report.

Changes in Internal Controls

There have been no changes in our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) that have occurred during the quarter ended June 30, 2025, that have materially impacted, or are reasonably likely to materially impact, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls or our internal controls over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls’ effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies and procedures. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and, based on an evaluation of our controls and procedures, our principal executive officer and our principal financial officer concluded our disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, the end of the period covered by this Quarterly Report.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 4 - Mergers and Acquisitions and Note 7 - Commitments and Contingencies to the condensed consolidated financial statements for information concerning our legal proceedings.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024. These risks, which could materially affect our business, financial condition or future results, are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may adversely affect our business, financial condition and/or operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides the information with respect to purchases made by us of shares of our common stock during each of the months during the three-month period ended June 30, 2025. The amounts below only relate to employee stock activity as the Merger Agreement limits the Company's ability to repurchase shares of common stock prior to the completion of the Merger, subject to certain exceptions:


Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) That May Yet Be Purchased Under the Plans or Programs
April 1, 2025 to April 30, 2025	593		$	92.84	—	$	—
May 1, 2025 to May 31, 2025	21,850		96.00		—	—
June 1, 2025 to June 30, 2025	10,414		94.95		—	—
	32,857	(1)	$	95.61	—	$	—

(1)Includes shares of common stock surrendered to us by certain employees to satisfy tax withholding obligations in connection with the vesting of non-vested stock previously awarded to such employees under our 2018 Omnibus Incentive Compensation Plan.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

On May 19, 2025, Allyson Guidroz, our Chief Accounting Officer, adopted a 10b5-1 trading plan. The adoption of such 10b5-1 trading plan occurred during an open trading window and complied with the Company’s policies on insider trading. The first trade will not occur until August 18, 2025, at the earliest. Ms. Guidroz’s plan is for the sale of up to 4,774 shares of our common stock, based on limit orders at a specified price in accordance with the plan and terminates on the earlier of the date all the shares under the plan are sold or August 7, 2026.

ITEM 6. EXHIBITS

The exhibits marked with the cross symbol (†) are filed and the exhibits marked with a double cross (††) are furnished with this Form 10-Q. Any exhibits marked with the asterisk symbol (*) are management contracts or compensatory plans or arrangements filed pursuant to Item 601(b)(10)(iii) of Regulation S-K.

Exhibit
Number

Document Description

Report or Registration Statement

SEC File or
Registration
Number

Exhibit
or Other
Reference

3.1

Composite of Certificate of Incorporation of the Company inclusive of all amendments through June 14, 2007

The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007

0-24260

3.1

3.2

Composite of By-Laws of the Company inclusive of all amendments through December 14, 2022

The Company’s Current Report on Form 8-K filed on December 16, 2022

0-24260

3.1

10.1

Fourth Amendment to Amended and Restated Credit Agreement, dated as of April 17, 2025, by and among Amedisys, Inc. and Amedisys Holding, L.L.C., as the borrowers, the Guarantors party thereto, the Lending party thereto Bank of America, N.A., as Administrative Agent, 'Swingline' Lender and L/C Issuer, and JPMorgan Chase Bank, N.A. as a lender and letter of credit issuer.

The Company’s Current Report on Form 8-K filed on April 23, 2025

0-24260

10.1

†31.1

Certification of Richard Ashworth, President and Chief Executive Officer (principal executive officer), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

†31.2

Certification of Scott G. Ginn, Chief Operating Officer, Executive Vice President and Chief Financial Officer (principal financial officer), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

††32.1

Certification of Richard Ashworth, President and Chief Executive Officer (principal executive officer), pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

††32.2

Certification of Scott G. Ginn, Chief Operating Officer, Executive Vice President and Chief Financial Officer (principal financial officer), pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

†101.INS

Inline XBRL Instance - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

†101.SCH

Inline XBRL Taxonomy Extension Schema Document

†101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

†101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase

†101.LAB

Inline XBRL Taxonomy Extension Labels Linkbase Document

†101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



AMEDISYS, INC. (Registrant)

By:						/s/ Allyson D. Guidroz
						Allyson D. Guidroz
						Principal Accounting Officer and
						Duly Authorized Officer

Date: July 30, 2025

AMEDISYS INC 10-Q