Amedisys, Inc. (AMED): BCG Matrix [Dec-2025 Updated]

You're looking at Amedisys, Inc.'s final strategic snapshot right before the Optum deal closed, and the picture is sharp: the massive Home Health business is clearly the Star, fueled by 6% same-store growth, while the Hospice unit locks in cash with a 49.6% gross margin. Still, the real intrigue lies with the tiny, high-potential High Acuity Care segment, a Question Mark facing a nearly 48.9% CAGR market, contrasting sharply with the divested Personal Care assets that were already shed. Let's map these core pillars onto the BCG Matrix to see exactly where Amedisys was placing its bets for its next chapter.

Background of Amedisys, Inc. (AMED)

You're looking at Amedisys, Inc. (AMED), which, as of late 2025, is no longer trading publicly, having completed a major transition. Founded way back in 1982 in Baton Rouge, Louisiana, the company was initially called Analytical Nursing Management Corporation before rebranding to Amedisys, Inc. in August 1995. Its core mission has always centered on bringing personalized, high-quality medical care directly to the patient's home, moving services away from costly institutional settings. This focus has made Amedisys a major force in the post-acute care market, partnering with over 3,300 hospitals and 114,000 physicians nationwide.

The company's operational structure is built around three main segments: Home Health, Hospice, and High Acuity Care. Honestly, the Home Health segment has historically been the powerhouse, representing 63.7% of consolidated revenue in the second quarter of 2025, while Hospice made up another significant chunk at 34.6%. Operationally, Amedisys reported net service revenue of $621.9 million for Q2 2025, showing a 5% increase year-over-year, with Adjusted EBITDA climbing 10% to $80.8 million.

The most defining event for Amedisys in 2025 was the closing of its acquisition by UnitedHealth Group (UHG). This deal, originally announced in June 2023 for about $3.3 billion, finally closed on August 14, 2025, making Amedisys a wholly-owned subsidiary under UHG's Optum division. To satisfy antitrust concerns raised by the U.S. Department of Justice, the parties had to agree to a settlement, which mandated the divestiture of 164 home health and hospice locations across 19 states, an action that accounted for approximately $528 million in annual revenue.

So, you're looking at a company with a solid operational base-with about 19,000 employees across 519 care centers in 38 states-that has just been absorbed into one of the largest healthcare entities in the country. Its Trailing Twelve Months revenue hit approximately $2.40 Billion USD as of mid-2025, reflecting sustained demand for its in-home services, even while navigating the complexities of the merger closing. Finance: review the Q2 2025 segment revenue breakdown against the divestiture scope by next Tuesday.

Amedisys, Inc. (AMED) - BCG Matrix: Stars

You're looking at the engine driving Amedisys, Inc.'s current growth trajectory, which clearly sits in the Star quadrant of the BCG Matrix. This means we're dealing with high market share in a market that's expanding fast. Honestly, these units demand heavy investment to maintain that lead, but the payoff is significant if they mature correctly.

The Home Health segment is definitely the primary Star candidate here. It was the largest revenue driver, posting $396.2 million in the second quarter of 2025. That's a solid top-line number for a single segment in a single quarter.

Growth isn't just coming from acquisitions; it's organic too. We saw strong volume momentum with a 6% increase in same-store admissions during Q2 2025. That kind of internal lift in a mature business is rare, and it signals strong operational execution against competitors.

To put that 6% admissions growth in context, you have to look at the playing field. The U.S. home healthcare sector itself is projected to grow at a Compound Annual Growth Rate (CAGR) between 7.4% and 7.9%. Amedisys, Inc.'s organic growth is tracking right in line with, or slightly below, the high end of that market expansion, which is exactly what you want to see from a market leader.

Market share dominance is supported by footprint. Amedisys, Inc. operates in 38 states, giving it a wide service coverage that translates directly into high relative market share across a large geographic footprint. Monopolies or first-to-market advantages often fall here, and this broad coverage helps secure that position.

Here's a quick summary of the key metrics defining this Star segment as of the latest reporting period:

Remember the core tenet of the BCG strategy for Stars: you invest heavily here. They consume cash because of that high growth rate, often resulting in a near break-even cash flow situation-money in equals money out, just to keep pace. If Amedisys, Inc. can sustain this success until the high-growth market naturally slows down, this segment will definitely transition into a Cash Cow.

The characteristics that firmly place this business unit in the Star quadrant include:

• High market share in a growing market.
• Leaders in their specific service areas.
• Require significant ongoing promotion and placement support.
• Consume large amounts of cash to fuel expansion.
• Potential to become Cash Cows if market growth decelerates.

If onboarding processes for new patients take longer than 14 days, churn risk definitely rises, which could stall the momentum needed to keep this Star shining bright. Finance: draft the capital expenditure forecast for Home Health for the next two quarters by Friday.

Amedisys, Inc. (AMED) - BCG Matrix: Cash Cows

You're looking at the core engine of Amedisys, Inc.'s current financial stability, the segment that consistently generates more cash than it needs to maintain its position. In the Boston Consulting Group Matrix framework, this is the Cash Cow quadrant: high market share in a mature market. For Amedisys, Inc., the Hospice segment fits this description perfectly, acting as the primary source of funding for the rest of the portfolio.

The Hospice segment provides stable, high-margin revenue, evidenced by a Q2 2025 gross margin of 49.6%. This margin performance is strong, showing an expansion from 49.0% in the prior-year period, supported by the 2025 rate increase effective October 1, 2024. This segment contributed $215.0 million to Q2 2025 revenue, which is a significant 34.6% of the consolidated total revenue of $621.9 million for the quarter. That level of contribution from a mature, high-margin business is what you want to see in a Cash Cow.

Growth in this area is modest, which is characteristic of a mature market. The average daily census saw only a 1.3% increase, and same-store admissions were up just 0.4%. Despite this low top-line growth, the segment generates substantial free cash flow for the enterprise. You can see the unit economics clearly in the per-day figures for the quarter:

Because this segment is a market leader that requires relatively low investment for maintenance-low growth means lower promotional spending-the resulting cash is significant. For context, the entire company generated free cash flow of $56.7 million in Q2 2025. The Hospice segment is the primary driver of that cash generation, allowing Amedisys, Inc. to fund its Question Marks, cover corporate overhead, and service debt.

The financial structure of this cash flow is heavily dictated by government payers. The segment is heavily reliant on Medicare fee-for-service, accounting for 95.4% of its revenue mix. This reliance is a double-edged sword; it ensures a steady, predictable revenue stream but also ties the segment's profitability directly to federal reimbursement policy. For instance, the revenue per day increased 4.1% year-over-year, which helped offset a 2.9% rise in cost per day to $90.74.

To maintain this Cash Cow status, the strategy is clear: invest just enough to keep the infrastructure running efficiently and maximize the cash harvest. You should focus on operational efficiency rather than aggressive market share expansion here. The key actions for this segment revolve around:

• Maintaining high clinical quality scores to ensure favorable Medicare Star Ratings.
• Managing the cost per day, especially labor costs, which rose 2.9% year-over-year.
• Monitoring regulatory changes, given the 95.4% Medicare dependency.

Finance: draft the 13-week cash flow view by Friday, focusing on the expected net cash contribution from Hospice.

Amedisys, Inc. (AMED) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

The Personal Care segment was divested in 2023, a classic move to harvest a low-growth, low-share business. This action aligns with minimizing exposure to units that do not generate significant cash flow or possess strong growth prospects within the Amedisys portfolio structure as it existed prior to the Optum acquisition closing.

Divestiture of 164 home health and hospice locations, accounting for $528 million in revenue, was mandated by the DOJ for the Optum deal. These divested assets were likely lower-performing or low-share operations in specific, competitive regional markets. The company's strategic focus shifted away from non-core, lower-margin personal care services and these specific mandated locations.

Here's the quick math on the scale of the divestitures relative to the company's overall size before the final closing of the merger:

The divestiture process, including the required asset sales, is a clear signal that Amedisys was actively pruning lower-share or low-growth components to streamline operations ahead of the finalization of the UnitedHealth Group transaction. The penalty associated with the transaction also ties back to compliance issues that can plague complex, lower-tier operations.

The characteristics of these former or mandated divestiture units fit the Dog profile:

• The Personal Care business was sold off entirely.
• The DOJ required divestiture of 164 locations.
• The divested locations represented approximately $528 million in annual revenue.
• Amedisys paid a $1.1 million civil penalty related to the merger process.
• The smallest remaining segment, High Acuity Care, generated only $10.7 million in Q2 2025 revenue.

If you're managing a business unit that requires expensive turn-around plans without clear market upside, divestiture is often the only financially sound path. Finance: draft 13-week cash view by Friday.

Amedisys, Inc. (AMED) - BCG Matrix: Question Marks

You're looking at the business units that represent Amedisys, Inc.'s future bets, the ones that need serious capital to grow up or get cut. These are the Question Marks, operating in markets with massive potential but where Amedisys, Inc. currently holds a small piece of the pie.

The High Acuity Care segment, driven by the Contessa Health platform, fits squarely here. It is positioned within the Hospital-at-Home market, which is definitely a high-growth area. The market itself is projected to expand at a huge 48.9% Compound Annual Growth Rate (CAGR) from 2025 through 2034.

Still, the revenue generated by this segment as of the second quarter of 2025 is quite small relative to the overall Amedisys, Inc. business, only reaching $10.7 million. This low revenue figure, despite the high market growth, signals a low current market share, which is the hallmark of a Question Mark.

Here's a quick look at the recent top-line performance for this unit:

• High Acuity Care segment revenue in the first half of 2025 reached $20.0 million.
• This compares to $16.2 million in the prior year period for the same six months.

This segment is consuming cash to build out its infrastructure and secure partnerships, which is why returns are low right now, but the growth rate shows buyers are starting to discover the service. The strategic imperative for Amedisys, Inc. is clear: invest heavily to capture share quickly or risk this unit becoming a Dog.

The investment needed is significant, especially given the need to compete in this rapidly expanding space. Optum, as a key partner, is central to providing the capital and scale required for Amedisys, Inc. to turn this unit into a Star. If they succeed, the returns could be substantial.

Here's a snapshot of the financial context for this Question Mark:

You need to watch the capital deployment into Contessa Health closely. If the investment doesn't translate into a rapid increase in market share, the cash burn will become unsustainable. Finance: draft the next 13-week cash flow projection incorporating a stress test on High Acuity Care capital needs by Friday.