Amedisys, Inc. (AMED): Business Model Canvas [Dec-2025 Updated]

You're digging into the Amedisys, Inc. Business Model Canvas right after a massive industry event: the August 2025 acquisition by UnitedHealth Group's Optum division. Honestly, looking at this model now isn't about the old Amedisys; it's about how a powerhouse like Optum is integrating a provider whose Home Health services alone made up 63.7% of its Q2 2025 revenue. As a former portfolio head, I can tell you this vertical integration changes everything-from key partnerships to revenue streams-and you need to see the new structure to understand where the value is flowing now. Dive in below to see the nine blocks that define this newly integrated entity.

Amedisys, Inc. (AMED) - Canvas Business Model: Key Partnerships

Optum/UnitedHealth Group (Parent Company) for vertical integration and referrals

The acquisition of Amedisys, Inc. by UnitedHealth Group subsidiary Optum officially closed on August 14, 2025. The transaction was an all-cash acquisition at $101 per share, establishing a total company valuation of $3.3 billion. This combination integrates Amedisys into Optum's health services division, strengthening the push into value-based care and home-based services. To secure approval from the U.S. Department of Justice, the agreement mandated the divestiture of 164 home health and hospice locations across 19 states. The divested locations accounted for approximately $528 million in yearly revenue.

Over 3,300 hospitals and 114,000 physicians for patient referrals

As of the second quarter of 2025, Amedisys reported that more than 3,300 hospitals and 114,000 physicians nationwide had selected the company as a post-acute care partner. The company served over 499,000 patients every year across 38 states and the District of Columbia, utilizing 519 care centers.

State and federal regulatory bodies (CMS) for operational compliance

Amedisys maintains stringent standards for regulatory compliance, focusing on fraud, waste, and abuse prevention. The company performs periodic clinical records reviews to ensure ongoing adherence to federal and state regulations, including the Conditions of Participation and Medicare coverage and eligibility guidelines. Historically, 99% of Amedisys Home Health Agencies achieved 4 Stars or Higher in CMS Quality ratings. In connection with the merger, Amedisys agreed to pay a $1.1 million civil penalty related to document cooperation during the investigation.

Health systems and payors for High Acuity Care joint ventures (Contessa)

The high-acuity arm, Contessa Health, which Amedisys acquired for $250 million in 2021, focuses on hospital-at-home and SNF-at-home programs through joint ventures (JVs) with health systems and payors. As of December 31, 2023, Contessa had at least 10 joint ventures actively admitting patients. The model is designed to deliver value to both the health system and the health insurance payer, facilitating the ability to manage additional risk in value-based arrangements. One metric from a prior period showed Contessa's palliative-at-home model achieving 131% of budgeted engaged member months in the second quarter.

Technology vendors for electronic health records (EHR) and telehealth platforms

Amedisys requires partnerships with technology vendors to support its operations, including the delivery of care through its subsidiary, Contessa, which offers 24/7 virtual care to palliative patients. The company's compliance monitoring involves periodic clinical records reviews, which necessitates functional Electronic Health Record (EHR) systems.

• Amedisys utilizes a 24/7 compliance hotline for employee guidance.
• The company requires periodic, mandatory compliance training for all employees upon hire, as regulations change, and at least annually.

For the three months ended June 30, 2025, Amedisys reported net service revenue of $621.9 million and Adjusted EBITDA of $80.8 million.

Amedisys, Inc. (AMED) - Canvas Business Model: Key Activities

Delivering skilled nursing and therapy services in the home

Managing complex regulatory compliance (Medicare/Medicaid)

The reliance on Medicare fee-for-service dictates a primary focus on compliance related to that payor.

• Medicare has a 14-day minimum payment floor.
• Medicare must pay interest on uncompensated claims older than 30 days.

Recruiting, training, and retaining a large clinical workforce

Processing claims and managing revenue cycle for multiple payors

Working capital management efficiency is tracked via Days Sales Outstanding (DSO).

Integrating Amedisys operations into the Optum care delivery model

This activity is defined by the transaction closing in late 2025.

• Acquisition by UnitedHealth Group closed on August 14, 2025.
• The transaction value was $3.3 billion.
• Amedisys was delisted from the NASDAQ following the sale.
• The operations now fall under UnitedHealth Group's provider services arm, Optum.

The last reported full-year Net Service Revenue for the standalone entity was $2,348.3 million for the year ended December 31, 2024.

Amedisys, Inc. (AMED) - Canvas Business Model: Key Resources

You're analyzing the core assets Amedisys, Inc. (AMED) brought to the table as it finalized its integration into UnitedHealth Group in late 2025. These resources are what underpinned its market position in home health and hospice.

The physical footprint and human capital are substantial, representing a nationwide delivery system.

Network and Personnel Scale:

• Network of 519 care centers across 38 states and the District of Columbia.
• Approximately 19,000 skilled clinicians and employees delivering care.
• Serving more than 499,000 patients every year.
• Performing more than 10.6 million patient care visits annually.

The operational scale is best summarized by looking at the financial performance leading up to the August 2025 acquisition close, which demonstrates the value of this network.

Proprietary clinical protocols and technology are embedded in their quality metrics, which are a key part of their brand equity.

Brand Reputation and Clinical Distinction:

The reputation for quality is quantified by external benchmarks, which is what hospitals and physicians look for when choosing a post-acute partner. Amedisys was chosen by more than 3,000 hospitals and 114,000 physicians nationwide as a partner.

• CMS Quality Star Average: 4.18.
• CMS Patient Satisfaction Star Average: 4.02.
• 99% of Home Health Agencies achieved 4 Stars or Higher in CMS Quality.
• 3 out of 3 Hospice Item Quality Measures were above the National Average.
• 92 home health and hospice care centers recognized by SHP for highest satisfaction scores in 2023.

The company also invested in developing unique, evidence-based programs for patients with specific diagnoses or demographics, which supports the clinical distinction.

Financial Capital and Stability (Pre-Close Context):

The financial capital underpinning Amedisys, Inc. was fundamentally tied to the pending acquisition by UnitedHealth Group. The deal, originally valued at approximately $3.3 billion, closed in August 2025, making Amedisys, Inc. a subsidiary of UnitedHealth Group.

The financial terms related to the merger process itself highlight the scale of the transaction and the associated financial commitments:

• Regulatory Break Fee set at $275 million, potentially increasing to $325 million.
• The acquisition was expected to be modestly dilutive to UnitedHealth Group's adjusted EPS due to financing costs and integration investments.

This backing provided significant financial stability and access to capital for integration, even as the company reported merger-related expenses of $26.3 million in Q2 2025.

Amedisys, Inc. (AMED) - Canvas Business Model: Value Propositions

You're looking at the core reasons why patients, hospitals, and payers choose Amedisys, Inc. over other options. It's all about delivering high-value care outside of the traditional brick-and-mortar facility.

High-quality, personalized home health and hospice care

Amedisys, Inc. delivers personalized care across its network, which, as of mid-2025, spans approximately 519 care centers across 38 states and the District of Columbia. The company is dedicated to delivering the highest quality of care to the doorsteps of more than 499,000 patients every year. The Home Health segment alone generated net service revenue of $396.2 million for the three months ended June 30, 2025. This segment represents 63.7% of consolidated revenue. The Hospice segment contributed $215.0 million in revenue for the same quarter, representing 34.6% of the total. The company maintains a large workforce to support this, with approximately 19,000 employees. This scale allows for deep local penetration and personalized service delivery.

Post-acute care that reduces hospital readmissions

A major value driver is the proven ability to keep patients healthy at home following an acute event or discharge from a facility. Data supports this: patients who received home health care in one study had a 60 percent lower risk of readmission after 30 days compared to those discharged to home without home health. Furthermore, for patients discharged from a skilled nursing facility (SNF), a home health clinician visit within one week of discharge may cut the 30-day readmission risk nearly in half. For the healthcare system, this translates to direct savings; in the same study, hospital spending for the home health care group was $239 less per patient. Nationally, home health adherence to discharge instructions is linked to a 2.4 percentage point reduction in 30-day readmissions.

High Acuity Care (Contessa) providing hospital-level care at home

The High Acuity Care segment, through Contessa Health, offers hospital-equivalent services in the home, which is a significant differentiator. For the six-month period ended June 30, 2025, this segment reported net service revenue of $20.0 million, up from $16.2 million in the prior year. This model has shown substantial growth, with Contessa achieving over 32,000 bed days saved for its joint venture partners since its first market opened in 2016. Admissions growth for Contessa has averaged 31% year-over-year since 2023. This service line directly addresses the need for complex care outside of a facility setting.

Lower cost of care delivery compared to institutional settings

The fundamental premise of Amedisys, Inc.'s model is cost efficiency relative to institutional settings. While direct, current-year cost comparisons are proprietary, market analysis suggests significant potential for savings. Estimates suggest up to $265 billion worth of care for Medicare FFS and MA beneficiaries could shift from traditional facilities to the home by 2025. Home care services are recognized globally for their lower costs compared to institutional care. This efficiency is critical as post-acute care spending is forecast to increase from $646 billion to $1.312 billion over the next decade.

Comprehensive disease management programs for chronic conditions

Amedisys, Inc. focuses on empowering patients to manage chronic diseases, which is a key area for value-based care. The company's high-acuity arm, Contessa, is actively involved in specialized models. For instance, Contessa was selected by CMS to participate in the GUIDE model in 2025, which supports people living with dementia. In their Palliative Care at Home programs, nearly 100% of patients had advance care planning/goals of care discussions within 30 days of admission, ensuring care aligns with patient wishes and avoids unnecessary high-cost interventions.

Here's a quick look at the revenue contribution by segment for the three months ended June 30, 2025:

Finance: review the Q3 2025 budget variance against the projected revenue mix by segment by next Tuesday.

Amedisys, Inc. (AMED) - Canvas Business Model: Customer Relationships

You're looking at how Amedisys, Inc. manages the critical connections that drive its home health, hospice, and high acuity care revenue. This isn't just about patient satisfaction; it's about securing and maintaining the contractual pipelines from hospitals, physicians, and insurance companies.

High-touch, personalized care delivered by clinical staff is the core service delivery mechanism. The company maintains a large clinical footprint to support this model. Amedisys, Inc. has a family of more than 18,000 team members providing care across the country. This team performs more than 10.6 million visits annually to deliver personalized home health, hospice, and high acuity care services in the home.

The relationship with patient families is managed through dedicated support structures:

• Dedicated care coordinators and case managers for patient families.

Contractual relationships with payors and health systems form the financial backbone. Amedisys, Inc. recognizes service revenue when performance obligations are satisfied under contracts with customers, which are the amounts expected to be entitled in exchange for providing patient care.

Here's a look at the financial concentration and quality-based incentives within these payor relationships as of mid-2025:

The focus on quality outcomes directly ties into these payor relationships, as some contracts offer additional payments based on performance. For instance, Amedisys, Inc. had 90 home health and hospice care centers recognized as SHPBest™ Award recipients in 2024 for achieving high patient satisfaction scores in 2024.

Digital patient engagement tools for communication and monitoring are increasingly important, aligning with broader industry trends where Patient Communication is the largest and fastest-growing segment in patient experience technology. While specific Amedisys adoption rates aren't public, the company's focus is on tools that empower patients to engage actively in their treatment journey.

Referral source management is handled through dedicated liaison teams targeting the professional referral base. This strategy targets the entities that initiate patient care pathways:

• Hospitals choosing Amedisys as a post-acute care partner: Nearly 3,000.
• Physicians choosing Amedisys as a post-acute care partner: More than 110,000 nationwide.

These numbers show the breadth of the professional network Amedisys, Inc. must maintain relationships with to ensure a steady flow of patients needing home-based recovery and rehabilitation.

Amedisys, Inc. (AMED) - Canvas Business Model: Channels

You're looking at how Amedisys, Inc. (AMED), now integrated under Optum, gets its services to patients in late 2025. The channels are now heavily influenced by the UnitedHealth Group structure, which closed its acquisition in mid-August 2025 for a total valuation of $3.3 billion.

Direct patient referrals from hospitals and physician groups remain a core access point, building on Amedisys's established relationships. As of the second quarter of 2025, Amedisys reported partnerships with more than 3,300 hospitals and 114,000 physicians nationwide who choose Amedisys for post-acute care. The company offers providers a tool called Provider Link to quickly transmit referrals and orders electronically.

The acquisition fundamentally shifted the landscape for internal referrals from Optum's vast network of providers. This integration creates a massive, built-in referral stream, aligning Amedisys's home health and hospice services with Optum's value-based care expertise to serve more patients at lower costs. This new synergy is a primary driver for future patient volume.

For local community outreach and direct-to-consumer marketing, the channel relies on local presence to reach the nearly 470,000 patients Amedisys served annually before the merger. The company focuses on delivering care where patients live, including apartments, assisted living facilities, or nursing homes, as well as providing care in hospitals or dedicated inpatient hospice facilities.

The push toward technology supports Telehealth and remote patient monitoring technology platforms. The combined entity emphasizes care innovation within the home, using these platforms to improve patient outcomes and experiences.

Regarding the physical footprint, the prompt specifies 519 physical care centers serving as local operational hubs. To be fair, prior to the August 2025 closing, Amedisys reported having approximately 521 care centers across 37 states and the District of Columbia. However, the closing settlement required the divestiture of 164 home health and hospice locations across 19 states to facilitate regulatory approval.

Here's a quick look at the scale of the operation and its recent financial performance, which reflects the channel activity:

The channels rely on a mix of traditional provider relationships and the newly established, massive internal Optum pipeline. You should track the utilization rate of the Provider Link system, as that directly impacts the efficiency of the direct referral channel.

• Direct referrals from hospitals and physician groups.
• Internal referrals from Optum's vast network of providers.
• Local community outreach and direct-to-consumer marketing.
• Telehealth and remote patient monitoring technology platforms.
• Physical care centers serving as local operational hubs.

Finance: draft 13-week cash view by Friday.

Amedisys, Inc. (AMED) - Canvas Business Model: Customer Segments

You're looking at the core groups Amedisys, Inc. served as of mid-2025, right before or during the finalization of its acquisition by UnitedHealth Group's Optum.

The customer base is primarily defined by the type of care needed, which directly maps to Amedisys, Inc.'s service lines. The company delivered care to more than 499,000 patients every year across its network.

The primary customer groups, segmented by need and payer, generated the following revenue contributions in the second quarter of 2025:

For patients requiring home-based recovery and rehabilitation, the payer mix within the Home Health segment for the first quarter of 2025 showed a clear reliance on government programs, though commercial growth was strong:

• Medicare revenues (Major government payor): $212.1 million in Q1 2025.
• Non-Medicare revenues (Includes Commercial health plans): $160 million in Q1 2025, marking a nearly 20% year-over-year increase.

The relationships with institutional referrers are a critical part of acquiring these patient segments. Amedisys, Inc. served as a partner in post-acute care for:

• More than 3,300 hospitals nationwide.
• More than 114,000 physicians nationwide.

The Hospice segment specifically targets terminally ill patients and their families, operating many centers designed to provide comfort and support. In the second quarter of 2025, the Hospice segment's Average Daily Census (ADC) increased 1.3%.

For patients with chronic diseases needing ongoing management, the Home Health segment is the primary delivery vehicle. The company operates 519 care centers within 38 states and the District of Columbia.

Amedisys, Inc. (AMED) - Canvas Business Model: Cost Structure

You're looking at the hard costs Amedisys, Inc. faces to keep the lights on and the caregivers delivering care, especially with that big merger activity happening. It's a cost structure heavily weighted toward the people providing the service, which is typical for a high-touch healthcare provider like Amedisys, Inc.

The High variable cost of clinical labor is the single biggest driver. While we don't have a clean breakout for just salaries, benefits, and travel, we can see the scale of personnel costs embedded in the General and Administrative (G&A) line and the Cost of Service. For the first quarter of 2025, the Cost of Service, which includes clinical labor, was $334.1 million.

Drilling into the G&A component for that same quarter (three months ended March 31, 2025), the Salaries and benefits line alone hit $131,968 thousand, or about $132.0 million.

The Merger-related expenses are a clear, non-recurring cost item that hit the books hard in the first half of 2025. For the six-month period ended June 30, 2025, Amedisys, Inc. reported merger-related expenses totaling $43.0 million.

The General and administrative (G&A) overhead for corporate functions shows some fluctuation. For the three-month period ended March 31, 2025, total G&A expenses were $212.9 million, which was a slight decrease from $214.0 million in the same period of 2024.

Here's a look at the key expense components we can quantify from the first quarter of 2025 results (amounts in thousands):

Regarding Regulatory compliance and quality assurance expenses, these costs are generally bundled into the Cost of Service or G&A. We know Amedisys, Inc. is actively engaging with regulators, for example, by partnering with industry advocates to share comments with CMS regarding the proposed 6.4% aggregate cut to home health payments for 2026.

Costs related to Technology and infrastructure for EHR and remote monitoring are not explicitly broken out in the high-level income statement data, but they contribute to the overall operating expense base. The company employs 19,000 people across 347 Medicare-certified home health care centers, all relying on that infrastructure.

You can see the impact of these costs on the overall operating income:

• Operating Income for Q1 2025 was $43.4 million.
• Operating Income for Q1 2024 was $31.6 million.
• Excluding merger-related expenses in Q1 2025, operating income increased $8 million on a $23 million net service revenue increase.

Finance: draft 13-week cash view by Friday.

Amedisys, Inc. (AMED) - Canvas Business Model: Revenue Streams

You're looking at the core ways Amedisys, Inc. brings in money, which is all about delivering care where people live. Honestly, it's a model heavily reliant on government payors, which means reimbursement rates are key to watching.

The Total Net Service Revenue for the first half (H1) of 2025 hit $1,216.6 million, up from $1,162.6 million in H1 2024. This shows the top line is growing, even with all the regulatory noise around the merger.

Here's a look at the revenue breakdown for the second quarter (Q2) of 2025, which really highlights where the bulk of the money comes from:

The Home Health services stream is the biggest piece of the pie, bringing in $396.2 million in Q2 2025. That segment alone is 63.7% of the total revenue. The Hospice services stream followed, generating $215.0 million for the quarter.

Within the Home Health segment, the payment source is very concentrated. You need to know this for risk assessment. The Medicare Fee-for-Service programs account for 54.3% of that Home Health revenue. To be fair, Medicare is also a huge driver in Hospice, accounting for 95.4% of Hospice revenue.

The High Acuity Care services, which Amedisys, Inc. delivers through joint ventures under the Contessa name, is the smallest component based on the Q2 2025 figures. You can see the growth in this area, as Q1 2025 revenue for this segment was $7.7 million. The Q2 2025 revenue for High Acuity Care is the remainder after accounting for the stated Home Health and Hospice revenues against the total Q2 2025 revenue of $621.9 million ($621.9 million total - $396.2 million HH - $215.0 million Hospice = $10.7 million).

You can see the revenue streams break down like this:

• Home Health services: 63.7% of Q2 2025 revenue.
• Hospice services: $215.0 million in Q2 2025.
• Medicare Fee-for-Service: 54.3% of Home Health revenue.
• Total Net Service Revenue (H1 2025): $1,216.6 million.

Finance: draft 13-week cash view by Friday.