Joseph Kinnison, CFA
CFA, special situations

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...

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