Joseph Kinnison, CFA
Short-term horizon, CFA, special situations, event-driven

Almost Family Positioned To Roll Up Home Health

Almost Family (NASDAQ:AFAM) is the fourth largest home healthcare provider in the United States. The company has a Southeast and Midwest franchise with 240 branches. The business employs care givers to visit the infirm in their homes and administer nursing, therapy, and personal care. After a four-year pause awaiting regulatory certainty, management now sees an opportunity to take part in consolidating the industry. With the Medicare "rebasing outcome known," capital flows are expected to resume. Home health is a fragmented industry, and Almost Family is set to expand from about 2% market share.

The Center for Medicaid Services (CMS) plans to cut home health funding by a total of 14% over the next four years. Cuts...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details