Company Quick10K Filing
Amedisys
Price132.53 EPS4
Shares33 P/E34
MCap4,374 P/FCF34
Net Debt224 EBIT170
TEV4,597 TEV/EBIT27
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-10-29
10-Q 2020-06-30 Filed 2020-07-29
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-19
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-01
10-K 2018-12-31 Filed 2019-02-28
10-Q 2018-09-30 Filed 2018-10-30
10-Q 2018-06-30 Filed 2018-08-01
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-02-28
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-07-27
10-Q 2017-03-31 Filed 2017-05-03
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-04
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-03-10
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-07-29
10-Q 2015-03-31 Filed 2015-04-29
10-K 2014-12-31 Filed 2015-03-04
10-Q 2014-09-30 Filed 2014-10-29
10-Q 2014-06-30 Filed 2014-07-30
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-03-12
10-Q 2013-09-30 Filed 2013-11-12
10-Q 2013-06-30 Filed 2013-07-31
10-Q 2013-03-31 Filed 2013-04-30
10-Q 2012-09-30 Filed 2012-11-06
10-Q 2012-06-30 Filed 2012-08-07
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-02-28
10-Q 2011-09-30 Filed 2011-11-01
10-Q 2011-06-30 Filed 2011-08-02
10-Q 2011-03-31 Filed 2011-04-26
10-K 2010-12-31 Filed 2011-02-22
10-Q 2010-09-30 Filed 2010-10-26
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-04-27
10-K 2009-12-31 Filed 2010-02-23
8-K 2020-10-28
8-K 2020-08-10
8-K 2020-07-28
8-K 2020-06-09
8-K 2020-06-01
8-K 2020-05-06
8-K 2020-04-23
8-K 2020-04-10
8-K 2020-02-18
8-K 2020-01-14
8-K 2020-01-02
8-K 2019-11-25
8-K 2019-10-29
8-K 2019-10-17
8-K 2019-07-31
8-K 2019-07-25
8-K 2019-06-07
8-K 2019-04-30
8-K 2019-04-01
8-K 2019-02-27
8-K 2019-02-25
8-K 2019-02-19
8-K 2019-02-12
8-K 2019-02-01
8-K 2019-01-08
8-K 2018-10-29
8-K 2018-10-09
8-K 2018-10-03
8-K 2018-09-27
8-K 2018-08-29
8-K 2018-07-31
8-K 2018-07-31
8-K 2018-06-29
8-K 2018-06-06
8-K 2018-06-04
8-K 2018-05-18
8-K 2018-05-07
8-K 2018-04-20
8-K 2018-02-27
8-K 2018-01-10

AMED 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 amed-20203009xexx311.htm
EX-31.2 amed-20203009xexx312.htm
EX-32.1 amed-20203009xexx321.htm
EX-32.2 amed-20203009xexx322.htm

Amedisys Earnings 2020-09-30

Balance SheetIncome StatementCash Flow

amed-20200930
FALSE2020Q3AMEDISYS INC0000896262--12-313.013.23.86.8Fluctuating 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 Eurodollar Rate for an interest period of one month plus 1% per annum.Rate at which Eurodollar deposits in the London interbank market for an interest period of one, two, three or six months0.81,454,955297,66819,95500008962622020-01-012020-09-30xbrli:shares00008962622020-10-23iso4217:USD00008962622020-09-3000008962622019-12-31iso4217:USDxbrli:shares00008962622020-07-012020-09-3000008962622019-07-012019-09-3000008962622019-01-012019-09-3000008962622020-06-300000896262us-gaap:CommonStockMember2020-06-300000896262us-gaap:AdditionalPaidInCapitalMember2020-06-300000896262us-gaap:TreasuryStockMember2020-06-300000896262us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000896262us-gaap:RetainedEarningsMember2020-06-300000896262us-gaap:NoncontrollingInterestMember2020-06-300000896262us-gaap:CommonStockMember2020-07-012020-09-300000896262us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000896262us-gaap:TreasuryStockMember2020-07-012020-09-300000896262us-gaap:NoncontrollingInterestMember2020-07-012020-09-300000896262us-gaap:RetainedEarningsMember2020-07-012020-09-300000896262us-gaap:CommonStockMember2020-09-300000896262us-gaap:AdditionalPaidInCapitalMember2020-09-300000896262us-gaap:TreasuryStockMember2020-09-300000896262us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000896262us-gaap:RetainedEarningsMember2020-09-300000896262us-gaap:NoncontrollingInterestMember2020-09-3000008962622019-06-300000896262us-gaap:CommonStockMember2019-06-300000896262us-gaap:AdditionalPaidInCapitalMember2019-06-300000896262us-gaap:TreasuryStockMember2019-06-300000896262us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300000896262us-gaap:RetainedEarningsMember2019-06-300000896262us-gaap:NoncontrollingInterestMember2019-06-300000896262us-gaap:CommonStockMember2019-07-012019-09-300000896262us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300000896262us-gaap:TreasuryStockMember2019-07-012019-09-300000896262us-gaap:NoncontrollingInterestMember2019-07-012019-09-300000896262us-gaap:RetainedEarningsMember2019-07-012019-09-3000008962622019-09-300000896262us-gaap:CommonStockMember2019-09-300000896262us-gaap:AdditionalPaidInCapitalMember2019-09-300000896262us-gaap:TreasuryStockMember2019-09-300000896262us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300000896262us-gaap:RetainedEarningsMember2019-09-300000896262us-gaap:NoncontrollingInterestMember2019-09-300000896262us-gaap:CommonStockMember2019-12-310000896262us-gaap:AdditionalPaidInCapitalMember2019-12-310000896262us-gaap:TreasuryStockMember2019-12-310000896262us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000896262us-gaap:RetainedEarningsMember2019-12-310000896262us-gaap:NoncontrollingInterestMember2019-12-310000896262us-gaap:CommonStockMember2020-01-012020-09-300000896262us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300000896262us-gaap:TreasuryStockMember2020-01-012020-09-300000896262us-gaap:NoncontrollingInterestMember2020-01-012020-09-300000896262us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300000896262us-gaap:RetainedEarningsMember2020-01-012020-09-3000008962622018-12-310000896262us-gaap:CommonStockMember2018-12-310000896262us-gaap:AdditionalPaidInCapitalMember2018-12-310000896262us-gaap:TreasuryStockMember2018-12-310000896262us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310000896262us-gaap:RetainedEarningsMember2018-12-310000896262us-gaap:NoncontrollingInterestMember2018-12-310000896262us-gaap:CommonStockMember2019-01-012019-09-300000896262us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300000896262us-gaap:TreasuryStockMember2019-01-012019-09-300000896262us-gaap:NoncontrollingInterestMember2019-01-012019-09-300000896262us-gaap:RetainedEarningsMember2019-01-012019-09-30xbrli:pure0000896262amed:MedicareRevenueMemberus-gaap:RevenueFromContractWithCustomerMember2019-01-012019-09-300000896262amed:MedicareRevenueMemberus-gaap:RevenueFromContractWithCustomerMember2019-07-012019-09-30amed:care_center0000896262amed:HomeHealthMember2020-09-300000896262amed:HospiceMember2020-09-300000896262amed:PersonalCareMember2020-09-30amed:state0000896262amed:HeritageHealthcareInnovationFundLPMember2020-04-012020-06-300000896262amed:MedicareRevenueMemberus-gaap:RevenueFromContractWithCustomerMember2020-07-012020-09-300000896262amed:MedicareRevenueMemberus-gaap:RevenueFromContractWithCustomerMember2020-01-012020-09-300000896262amed:HomeHealthMedicareMember2020-07-012020-09-300000896262amed:HomeHealthMedicareMember2019-07-012019-09-300000896262amed:HomeHealthMedicareMember2020-01-012020-09-300000896262amed:HomeHealthMedicareMember2019-01-012019-09-300000896262amed:HomeHealthNonMedicareEpisodicBasedMember2020-07-012020-09-300000896262amed:HomeHealthNonMedicareEpisodicBasedMember2019-07-012019-09-300000896262amed:HomeHealthNonMedicareEpisodicBasedMember2020-01-012020-09-300000896262amed:HomeHealthNonMedicareEpisodicBasedMember2019-01-012019-09-300000896262amed:HomeHealthNonMedicareNonEpisodicBasedMember2020-07-012020-09-300000896262amed:HomeHealthNonMedicareNonEpisodicBasedMember2019-07-012019-09-300000896262amed:HomeHealthNonMedicareNonEpisodicBasedMember2020-01-012020-09-300000896262amed:HomeHealthNonMedicareNonEpisodicBasedMember2019-01-012019-09-300000896262amed:HospiceMedicareMember2020-07-012020-09-300000896262amed:HospiceMedicareMember2019-07-012019-09-300000896262amed:HospiceMedicareMember2020-01-012020-09-300000896262amed:HospiceMedicareMember2019-01-012019-09-300000896262amed:HospiceNonMedicareMember2020-07-012020-09-300000896262amed:HospiceNonMedicareMember2019-07-012019-09-300000896262amed:HospiceNonMedicareMember2020-01-012020-09-300000896262amed:HospiceNonMedicareMember2019-01-012019-09-300000896262amed:PersonalCareMember2020-07-012020-09-300000896262amed:PersonalCareMember2019-07-012019-09-300000896262amed:PersonalCareMember2020-01-012020-09-300000896262amed:PersonalCareMember2019-01-012019-09-30amed:visit0000896262srt:MinimumMember2020-01-012020-09-300000896262srt:MaximumMember2020-01-012020-09-300000896262amed:HomeHealthMember2020-01-012020-09-300000896262amed:HospiceMember2020-01-012020-09-300000896262amed:CapYearTwoThousandThirteenThroughTwoThousandTwentyMember2020-09-300000896262amed:AseraCareHospiceMemberamed:CapYearTwoThousandThirteenThroughTwoThousandTwentyMember2020-09-300000896262amed:CapYearTwoThousandThirteenThroughTwoThousandTwentyMember2019-12-310000896262amed:AsanaHospiceAquisitionMember2020-09-300000896262amed:AseraCareHospiceMember2020-09-30amed:day0000896262us-gaap:FairValueInputsLevel1Member2020-09-300000896262us-gaap:FairValueInputsLevel2Member2020-09-300000896262us-gaap:FairValueInputsLevel3Member2020-09-300000896262amed:HomeHealthMemberstpr:WA2020-03-012020-03-010000896262amed:HomeHealthMemberstpr:WA2020-01-012020-09-300000896262amed:HomeHealthMemberamed:CertificateOfNeedMemberstpr:WA2020-09-300000896262amed:HomeHealthMemberstpr:KY2020-04-182020-04-180000896262amed:HomeHealthMemberstpr:KY2020-01-012020-09-300000896262amed:HomeHealthMemberamed:CertificateOfNeedMemberstpr:KY2020-09-300000896262amed:AsanaHospiceMemberamed:HospiceMember2020-01-012020-01-010000896262amed:AsanaHospiceMemberamed:HospiceMember2020-04-012020-06-300000896262amed:AsanaHospiceMemberamed:HospiceMember2020-09-300000896262amed:AsanaHospiceMemberamed:HospiceMember2020-01-012020-09-300000896262amed:AsanaHospiceMemberamed:MedicareLicenseMemberamed:HospiceMember2020-09-300000896262amed:AsanaHospiceMemberamed:AcquiredNamesOfBusinessMemberamed:HospiceMember2020-09-300000896262amed:AsanaHospiceMemberamed:HospiceMemberus-gaap:NoncompeteAgreementsMember2020-09-300000896262amed:AsanaHospiceMemberamed:AcquiredNamesOfBusinessMemberamed:HospiceMember2020-01-012020-09-300000896262amed:AsanaHospiceMemberamed:HospiceMemberus-gaap:NoncompeteAgreementsMember2020-01-012020-09-300000896262amed:AsanaHospiceMemberamed:HospiceMember2020-07-012020-09-300000896262amed:AseraCareHospiceMemberamed:HospiceMember2020-06-012020-06-010000896262amed:AseraCareHospiceMembersrt:MaximumMemberamed:HospiceMember2020-06-012020-06-010000896262amed:AseraCareHospiceMemberamed:HospiceMember2020-10-012020-10-010000896262amed:AseraCareHospiceMemberamed:HospiceMember2020-09-300000896262amed:AseraCareHospiceMemberamed:HospiceMember2020-01-012020-09-300000896262amed:AseraCareHospiceMemberamed:MedicareLicenseMemberamed:HospiceMember2020-09-300000896262amed:AseraCareHospiceMemberus-gaap:TradeNamesMemberamed:HospiceMember2020-09-300000896262amed:AseraCareHospiceMemberamed:HospiceMemberus-gaap:NoncompeteAgreementsMember2020-09-300000896262amed:AseraCareHospiceMemberamed:AcquiredNamesOfBusinessMemberamed:HospiceMember2020-01-012020-09-300000896262amed:AseraCareHospiceMemberamed:HospiceMemberus-gaap:NoncompeteAgreementsMember2020-01-012020-09-300000896262amed:AseraCareHospiceMemberamed:HospiceMember2020-07-012020-09-300000896262amed:AseraCareHospiceMemberamed:HospiceMember2019-07-012019-09-300000896262amed:AseraCareHospiceMemberamed:HospiceMember2019-01-012019-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberus-gaap:LoansPayableMember2020-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberus-gaap:EurodollarMemberus-gaap:LoansPayableMember2020-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberus-gaap:LoansPayableMember2020-01-012020-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberus-gaap:LoansPayableMember2019-12-310000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-09-300000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:EurodollarMember2020-09-300000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-09-300000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2019-12-310000896262amed:PromissoryNotesMember2020-09-300000896262amed:PromissoryNotesMember2019-12-310000896262us-gaap:CapitalLeaseObligationsMember2020-09-300000896262us-gaap:CapitalLeaseObligationsMember2019-12-3100008962622019-02-040000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberamed:AmendedCreditAgreementMember2019-02-040000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberamed:AmendedCreditAgreementMember2019-02-040000896262amed:AmendedCreditAgreementMember2019-02-042019-02-040000896262us-gaap:BaseRateMemberamed:AmendedCreditAgreementMember2020-01-012020-09-300000896262amed:AmendedCreditAgreementMemberus-gaap:EurodollarMember2020-01-012020-09-300000896262srt:MinimumMemberamed:DebtInstrumentByLeverageRatioTrancheOneMember2020-01-012020-09-300000896262amed:DebtInstrumentByLeverageRatioTrancheOneMember2020-01-012020-09-300000896262amed:DebtInstrumentByLeverageRatioTrancheOneMemberus-gaap:EurodollarMember2020-01-012020-09-300000896262us-gaap:BaseRateMemberamed:DebtInstrumentByLeverageRatioTrancheOneMember2020-01-012020-09-300000896262srt:MaximumMemberamed:DebtInstrumentByLeverageRatioTrancheTwoMember2020-01-012020-09-300000896262srt:MinimumMemberamed:DebtInstrumentByLeverageRatioTrancheTwoMember2020-01-012020-09-300000896262amed:DebtInstrumentByLeverageRatioTrancheTwoMember2020-01-012020-09-300000896262amed:DebtInstrumentByLeverageRatioTrancheTwoMemberus-gaap:EurodollarMember2020-01-012020-09-300000896262us-gaap:BaseRateMemberamed:DebtInstrumentByLeverageRatioTrancheTwoMember2020-01-012020-09-300000896262srt:MaximumMemberamed:DebtInstrumentByLeverageRatioTrancheThreeMember2020-01-012020-09-300000896262srt:MinimumMemberamed:DebtInstrumentByLeverageRatioTrancheThreeMember2020-01-012020-09-300000896262amed:DebtInstrumentByLeverageRatioTrancheThreeMember2020-01-012020-09-300000896262us-gaap:EurodollarMemberamed:DebtInstrumentByLeverageRatioTrancheThreeMember2020-01-012020-09-300000896262us-gaap:BaseRateMemberamed:DebtInstrumentByLeverageRatioTrancheThreeMember2020-01-012020-09-300000896262srt:MaximumMemberamed:DebtInstrumentByLeverageRatioTrancheFourMember2020-01-012020-09-300000896262amed:DebtInstrumentByLeverageRatioTrancheFourMember2020-01-012020-09-300000896262amed:DebtInstrumentByLeverageRatioTrancheFourMemberus-gaap:EurodollarMember2020-01-012020-09-300000896262us-gaap:BaseRateMemberamed:DebtInstrumentByLeverageRatioTrancheFourMember2020-01-012020-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberamed:AmendedCreditAgreementMember2019-02-042020-03-310000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberamed:AmendedCreditAgreementMemberus-gaap:SubsequentEventMember2020-04-012023-03-310000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberamed:AmendedCreditAgreementMemberus-gaap:SubsequentEventMember2023-04-012024-02-040000896262srt:MinimumMemberamed:AmendedCreditAgreementMember2019-02-042019-02-040000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-07-012020-09-300000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2019-07-012019-09-300000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2019-01-012019-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberus-gaap:LoansPayableMember2020-07-012020-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberus-gaap:LoansPayableMember2019-07-012019-09-300000896262amed:OneHundredSeventyFiveMillionTermLoanFacilityMemberus-gaap:LoansPayableMember2019-02-042019-09-300000896262amed:FiveHundredFiftyMillionRevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-09-300000896262amed:AmendedCreditAgreementMemberus-gaap:BaseRateMember2019-02-042019-02-040000896262amed:AmendedCreditAgreementMemberus-gaap:EurodollarMember2019-02-042019-02-040000896262amed:AmendedCreditAgreementMember2020-01-012020-03-31amed:patient0000896262stpr:MAamed:HospiceMemberamed:UsDepartmentOfJusticeMember2015-05-212015-05-210000896262amed:MorgantownWestVirginiaMemberamed:HospiceMemberamed:UsDepartmentOfJusticeMember2015-11-032015-11-030000896262amed:HospiceMemberamed:ParkersburgWestVirginiaMemberamed:UsDepartmentOfJusticeMember2016-06-272016-06-270000896262amed:HospiceMemberamed:UsDepartmentOfJusticeMember2020-09-300000896262amed:CompassionateCareHospiceCIAMember2015-01-302015-01-300000896262amed:AmedisysCIAMember2014-04-232014-04-23amed:beneficiary0000896262amed:HospiceMemberstpr:SC2008-01-012010-03-310000896262amed:HospiceMemberstpr:SCamed:ExtrapolatedMember2011-06-062011-06-060000896262amed:UnfavorableMemberamed:HospiceMemberstpr:SC2016-01-18amed:claim0000896262amed:UnfavorableMemberamed:HospiceMemberstpr:SC2016-01-182016-01-180000896262amed:UnfavorableMemberamed:HospiceMemberstpr:SC2020-09-300000896262amed:HospiceMemberstpr:SC2020-09-300000896262amed:HospiceMemberstpr:SC2019-01-100000896262amed:LakelandFloridaMemberamed:HomeHealthMemberamed:SafeguardZoneProgramIntegrityContractorMember2017-08-310000896262amed:LakelandFloridaMemberamed:HomeHealthMemberamed:SafeguardZoneProgramIntegrityContractorMember2017-08-012017-08-310000896262amed:HomeHealthMemberamed:SafeguardZoneProgramIntegrityContractorMemberamed:ClearwaterFloridaMember2017-08-310000896262amed:HomeHealthMemberamed:SafeguardZoneProgramIntegrityContractorMemberamed:ClearwaterFloridaMember2017-08-012017-08-310000896262amed:LakelandFloridaMemberamed:HomeHealthMemberamed:SafeguardZoneProgramIntegrityContractorMember2020-09-300000896262amed:HomeHealthMemberamed:SafeguardZoneProgramIntegrityContractorMemberamed:ClearwaterFloridaMember2020-09-300000896262amed:InfinityHomeCareMemberstpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2017-08-310000896262amed:HomeHealthMembersrt:MinimumMemberstpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2017-08-310000896262amed:HomeHealthMembersrt:MaximumMemberstpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2017-08-310000896262amed:HomeHealthMembersrt:MaximumMemberstpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2020-09-300000896262stpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2020-09-300000896262stpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2017-08-310000896262amed:HomeHealthMemberstpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2017-01-012017-12-310000896262amed:InfinityHomeCareMemberamed:HomeHealthMemberstpr:FLamed:SafeguardZoneProgramIntegrityContractorMember2020-09-30amed:Segments0000896262amed:HomeHealthMember2020-07-012020-09-300000896262amed:HospiceMember2020-07-012020-09-300000896262amed:PersonalCareMember2020-07-012020-09-300000896262us-gaap:AllOtherSegmentsMember2020-07-012020-09-300000896262amed:HomeHealthMember2019-07-012019-09-300000896262amed:HospiceMember2019-07-012019-09-300000896262amed:PersonalCareMember2019-07-012019-09-300000896262us-gaap:AllOtherSegmentsMember2019-07-012019-09-300000896262amed:PersonalCareMember2020-01-012020-09-300000896262us-gaap:AllOtherSegmentsMember2020-01-012020-09-300000896262amed:HomeHealthMember2019-01-012019-09-300000896262amed:HospiceMember2019-01-012019-09-300000896262amed:PersonalCareMember2019-01-012019-09-300000896262us-gaap:AllOtherSegmentsMember2019-01-012019-09-300000896262amed:ExecutiveStockOptionExerciseMember2020-08-102020-08-100000896262amed:ExecutiveStockOptionExerciseMember2020-07-012020-09-3000008962622019-02-2500008962622019-02-252019-02-250000896262amed:MedalogixMember2018-01-012018-12-310000896262amed:MedalogixMember2020-07-012020-09-300000896262amed:MedalogixMember2020-01-012020-09-300000896262amed:MedalogixMember2019-07-012019-09-300000896262amed:MedalogixMember2019-01-012019-09-3000008962622020-03-2700008962622020-04-012020-04-300000896262us-gaap:EquityMethodInvestmentsMember2020-04-012020-04-300000896262amed:AseraCareHospiceMember2020-04-012020-04-300000896262amed:HomeHealthAndHospiceMember2020-07-012020-09-300000896262amed:HomeHealthAndHospiceMember2020-01-012020-09-3000008962622020-04-2400008962622020-10-01


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 September 30, 2020
or
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 
amed-20200930_g1.jpg
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareAMEDThe 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, 32,810,539 shares outstanding as of October 23, 2020.




TABLE OF CONTENTS
;;;
PART I.
ITEM 1.
ITEM 2.
ITEM 3
ITEM 4.
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.




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: the impact of the novel coronavirus pandemic ("COVID-19"), including the measures that have been and may be taken by governmental authorities to mitigate it, on our business, financial condition and results of operations, 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 Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, competition in the healthcare industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to consistently provide high-quality care, our ability to attract and retain qualified personnel, our ability to keep our patients and employees safe, changes in payments and covered services by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disaster, acts of terrorism, widespread protests or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions, and changes in law 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, 2019, filed with the SEC on February 19, 2020, particularly, Part I, Item 1A - Risk Factors therein, which are incorporated herein by reference, 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.
1


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
September 30, 2020 (unaudited)December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents$112,904 $30,294 
Restricted cash2,549 66,196 
Patient accounts receivable250,777 237,596 
Prepaid expenses14,906 8,243 
Other current assets30,114 8,225 
Total current assets411,250 350,554 
Property and equipment, net of accumulated depreciation of $101,512 and $96,137
24,104 28,113 
Operating lease right of use assets94,273 84,791 
Goodwill931,483 658,500 
Intangible assets, net of accumulated amortization of $17,165 and $7,044
84,143 64,748 
Deferred income taxes24,189 21,427 
Other assets33,278 54,612 
Total assets$1,602,720 $1,262,745 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$39,037 $31,259 
Payroll and employee benefits126,543 120,877 
Accrued expenses170,743 137,111 
Provider relief fund advance60,000  
Current portion of long-term obligations10,711 9,927 
Current portion of operating lease liabilities30,462 27,769 
Total current liabilities437,496 326,943 
Long-term obligations, less current portion300,576 232,256 
Operating lease liabilities, less current portion62,519 56,128 
Other long-term obligations44,386 5,905 
Total liabilities844,977 621,232 
Commitments and Contingencies—Note 5
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; 37,457,444 and 36,638,021 shares issued; and 32,802,785 and 32,284,051 shares outstanding
37 37 
Additional paid-in capital
690,099 645,256 
Treasury stock, at cost 4,654,659 and 4,353,970 shares of common stock
(318,771)(251,241)
Accumulated other comprehensive income 15 
Retained earnings384,840 246,383 
Total Amedisys, Inc. stockholders’ equity756,205 640,450 
Noncontrolling interests1,538 1,063 
Total equity757,743 641,513 
Total liabilities and equity$1,602,720 $1,262,745 
The accompanying notes are an integral part of these condensed consolidated financial statements.
2


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
 
 For the Three-Month 
Periods Ended September 30,
For the Nine-Month 
Periods Ended September 30,
 2020201920202019
Net service revenue$544,070 $494,631 $1,520,814 $1,454,955 
Other operating income4,812  27,592  
Cost of service, excluding depreciation and amortization297,668 288,708 878,633 854,734 
General and administrative expenses:
Salaries and benefits123,146 99,941 330,329 293,127 
Non-cash compensation7,124 6,298 19,758 18,451 
Other49,348 48,474 142,616 140,284 
Depreciation and amortization8,283 4,366 19,955 12,440 
Operating expenses485,569 447,787 1,391,291 1,319,036 
Operating income63,313 46,844 157,115 135,919 
Other income (expense):
Interest income31 15 258 59 
Interest expense(2,692)(3,778)(8,675)(11,459)
Equity in earnings from equity method investments1,435 (812)2,399 4,120 
Miscellaneous, net122 1,975 (2,318)2,404 
Total other expense, net(1,104)(2,600)(8,336)(4,876)
Income before income taxes62,209 44,244 148,779 131,043 
Income tax benefit (expense)10,202 (9,919)(9,175)(31,105)
Net income72,411 34,325 139,604 99,938 
Net income attributable to noncontrolling interests(430)(193)(1,147)(760)
Net income attributable to Amedisys, Inc.$71,981 $34,132 $138,457 $99,178 
Basic earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders$2.20 $1.06 $4.26 $3.09 
Weighted average shares outstanding32,662 32,211 32,469 32,096 
Diluted earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders$2.16 $1.03 $4.16 $3.01 
Weighted average shares outstanding33,260 33,002 33,267 32,944 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Amounts in thousands, except common stock shares)
(Unaudited)
For the Three-Months Ended September 30, 2020
TotalCommon StockAdditional
Paid-in
Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
SharesAmount
Balance, June 30, 2020$722,259 36,831,298 $37 $665,580 $(257,625)$ $312,859 $1,408 
Issuance of stock – employee stock purchase plan914 5,414 — 914 — — — — 
Issuance/(cancellation) of non-vested stock 81,767   — — — — 
Exercise of stock options3,123 538,965 — 3,123 — — — — 
Non-cash compensation7,124 — — 7,124 — — — — 
Surrendered shares(47,788)— — 13,358 (61,146)— — — 
Noncontrolling interest distribution(300)— — — — — — (300)
Net income72,411 — — — — — 71,981 430 
Balance, September 30, 2020$757,743 37,457,444 $37 $690,099 $(318,771)$ $384,840 $1,538 
For the Three-Months Ended September 30, 2019
TotalCommon StockAdditional
Paid-in
Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
SharesAmount
Balance, June 30, 2019$562,942 36,445,591 $36 $623,309 $(246,175)$15 $184,596 $1,161 
Issuance of stock – employee stock purchase plan850 8,230 — 850 — — — — 
Issuance of stock – 401(k) plan2,353 19,381 — 2,353 — — — — 
Issuance/(cancellation) of non-vested stock 88,334 1 (1)— — — — 
Exercise of stock options2,045 37,737 — 2,045 — — — — 
Non-cash compensation6,298 — — 6,298 — — — — 
Surrendered shares(4,895)— — — (4,895)— — — 
Noncontrolling interest distribution(453)— — — — — — (453)
Net income34,325 — — — — — 34,132 193 
Balance, September 30, 2019$603,465 36,599,273 $37 $634,854 $(251,070)$15 $218,728 $901 
For the Nine-Months Ended September 30, 2020
TotalCommon StockAdditional
Paid-in
Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
SharesAmount
Balance, December 31, 2019$641,513 36,638,021 $37 $645,256 $(251,241)$15 $246,383 $1,063 
Issuance of stock – employee stock purchase plan2,600 16,772 — 2,600 — — — — 
Issuance of stock – 401(k) plan3,057 18,312 — 3,057 — — — — 
Issuance/(cancellation) of non-vested stock 166,651   — — — — 
Exercise of stock options6,070 617,688 — 6,070 — — — — 
Non-cash compensation19,758 — — 19,758 — — — — 
Surrendered shares(54,172)— — 13,358 (67,530)— — — 
Noncontrolling interest distribution(672)— — — — — — (672)
Write-off of other comprehensive income(15)— — — — (15)— — 
Net income139,604 — — — — — 138,457 1,147 
Balance, September 30, 2020$757,743 37,457,444 $37 $690,099 $(318,771)$ $384,840 $1,538 
For the Nine-Months Ended September 30, 2019
TotalCommon StockAdditional
Paid-in
Capital
Treasury
Stock
Accumulated
Other
Comprehensive Income
Retained
Earnings
Noncontrolling
Interests
SharesAmount
Balance, December 31, 2018$482,633 36,252,280 $36 $603,666 $(241,685)$15 $119,550 $1,051 
Issuance of stock – employee stock purchase plan2,384 23,267 — 2,384 — — — — 
Issuance of stock – 401(k) plan6,966 57,783 — 6,966 — — — — 
Issuance/(cancellation) of non-vested stock 185,515 1 (1)— — — — 
Exercise of stock options3,388 80,428 — 3,388 — — — — 
Non-cash compensation18,451 — — 18,451 — — — — 
Surrendered shares(9,385)— — — (9,385)— — — 
Noncontrolling interest distribution(910)— — — — — — (910)
Net income99,938 — — — — — 99,178 760 
Balance, September 30, 2019$603,465 36,599,273 $37 $634,854 $(251,070)$15 $218,728 $901 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
 For the Nine-Month 
Periods Ended September 30,
 20202019
Cash Flows from Operating Activities:
Net income$139,604 $99,938 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization19,955 12,440 
Non-cash compensation19,758 18,451 
Non-cash 401(k) employer match 7,545 
Amortization and impairment of operating lease right of use assets29,149 27,014 
(Gain) loss on disposal of property and equipment(77)6 
Loss on sale of equity method investment2,980  
Write-off of other comprehensive income(15) 
Deferred income taxes(2,762)17,798 
Equity in earnings from equity method investments(2,399)(4,120)
Amortization of deferred debt issuance costs/debt discount653 653 
Return on equity investment3,919 3,727 
Changes in operating assets and liabilities, net of impact of acquisitions:
Patient accounts receivable6,486 (39,469)
Other current assets(28,217)(10,194)
Other assets(91)202 
Accounts payable(1,627)(8,145)
Accrued expenses25,594 27,903 
Other long-term obligations38,481 (231)
Operating lease liabilities(25,576)(24,116)
Operating lease right of use assets(2,775)(2,622)
Net cash provided by operating activities223,040 126,780 
Cash Flows from Investing Activities:
Proceeds from sale of deferred compensation plan assets94 287 
Proceeds from the sale of property and equipment80 158 
Purchases of property and equipment(2,995)(6,337)
Investments in equity method investees(875)(210)
Proceeds from sale of equity method investment17,876  
Acquisitions of businesses, net of cash acquired(299,723)(345,460)
Net cash used in investing activities(285,543)(351,562)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options6,070 3,388 
Proceeds from issuance of stock to employee stock purchase plan2,600 2,384 
Shares withheld to pay taxes on non-cash compensation(54,172)(9,385)
Noncontrolling interest distribution(672)(910)
Proceeds from borrowings under term loan 175,000 
Proceeds from borrowings under revolving line of credit432,000 192,500 
Repayments of borrowings under revolving line of credit (357,000)(133,000)
Principal payments of long-term obligations(7,360)(3,820)
Debt issuance costs (847)
Provider relief fund advance60,000  
Net cash provided by financing activities81,466 225,310 
Net increase in cash, cash equivalents and restricted cash18,963 528 
Cash, cash equivalents and restricted cash at beginning of period96,490 20,229 
Cash, cash equivalents and restricted cash at end of period$115,453 $20,757 
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest$4,902 $7,756 
Cash paid for income taxes, net of refunds received$30,290 $17,656 
Cash paid for operating lease liabilities$28,351 $26,738 
Cash paid for finance lease liabilities$1,483 $792 
Supplemental Disclosures of Non-Cash Activity:
Right of use assets obtained in exchange for operating lease liabilities$29,876 $110,304 
Right of use assets obtained in exchange for finance lease liabilities$822 $1,806 
Reductions to right of use assets resulting from reductions to operating lease liabilities$767 $1,235 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5


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 personal care services with approximately 76% and 75% of our revenue derived from Medicare for the three and nine-month periods ended September 30, 2020, respectively, and approximately 74% of our revenue derived from Medicare for the three and nine-month periods ended September 30, 2019. As of September 30, 2020, we owned and operated 320 Medicare-certified home health care centers, 182 Medicare-certified hospice care centers and 14 personal-care care centers in 39 states within the United States and the District of Columbia.
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, 2019, as filed with the Securities and Exchange Commission (“SEC”) on February 19, 2020 (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.
Recently Adopted Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326), which provides guidance for measuring credit losses on financial instruments. Our adoption of this standard on January 1, 2020 did not have a material effect on our condensed consolidated financial statements.
Recently Issued Accounting Pronouncements
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improves consistent application by clarifying and amending existing guidance. The ASU is effective for annual and interim periods beginning after December 15, 2020. Early adoption is permitted. While the Company does not expect a material impact upon adoption of ASU 2019-12, we are still evaluating the effect the standard will have on our consolidated financial statements and related disclosures and ongoing financial reporting.
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 unaudited 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 below.
6


AMEDISYS, INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Investments
We consolidate investments when the entity is a variable interest entity 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 if we hold 50% or less of the voting stock and the entity is not a variable interest entity in which we are the primary beneficiary. During the three-month period ended June 30, 2020, we sold our investment in the Heritage Healthcare Innovation Fund, LP via a secondary transaction for $17.9 million which resulted in a $3.0 million loss which is reflected in miscellaneous, net within our condensed consolidated statements of operations for the nine-month period ended September 30, 2020. The Company's original investment was made in 2010 and no longer fit within our strategic areas of focus. Proceeds from the sale were used to pay down debt and fund operations. The book value of investments that we account for under the equity method of accounting was $14.2 million and $35.7 million as of September 30, 2020 and December 31, 2019, respectively, and is reflected in other assets within our condensed consolidated balance sheet.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition
We account for revenue from contracts with customers in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (collectively, "ASC 606"), and as such, we recognize 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. The Company's 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.

The Company's performance obligations relate to contracts with a duration of less than one year; therefore, the Company has elected to apply the optional exemption provided by ASC 606 and is 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 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 economic 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. The Company assesses its ability to collect for the healthcare services provided at the time of patient admission based on the Company's verification of the patient's insurance coverage under Medicare, Medicaid, and other commercial or managed care insurance programs. Medicare represents approximately 76% and 75% of the Company's consolidated net service revenue for the three and nine-month periods ended September 30, 2020, respectively, and 74% of the Company's consolidated net service revenue for the three and nine-month periods ended September 30, 2019.

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.
7


AMEDISYS, INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


We determine our estimates for non-contractual revenue adjustments related to 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 experience, which primarily includes a historical collection rate of over 99% on Medicare claims. Revenue is recorded at amounts we estimate to be realizable for services provided.

Revenue by payor class as a percentage of total net service revenue is as follows:
For the Three-Month Periods Ended September 30,For the Nine-Month Periods
Ended September 30,
2020201920202019
Home Health:
     Medicare41 %43 %41 %44 %
     Non-Medicare - Episodic-based7 %9 %6 %9 %
     Non-Medicare - Non-episodic based12 %11 %13 %12 %
Hospice (1):
     Medicare35 %31 %34 %30 %
     Non-Medicare2 %2 %2 %1 %
Personal Care3 %4 %4 %4 %
100 %100 %100 %100 %
(1) Acquired Compassionate Care Hospice on February 1, 2019, RoseRock Healthcare on April 1, 2019, Asana Hospice on January 1, 2020 and AseraCare on June 1, 2020.

Home Health Revenue Recognition
Medicare Revenue
Effective January 1, 2020, the Centers for Medicare and Medicaid Services ("CMS") implemented a revised case-mix adjustment methodology, the Patient-Driven Groupings Model ("PDGM"), to better align payment with patient care needs and ensure that clinically complex and ill beneficiaries have adequate access to home health care. PDGM uses 30-day periods of care rather than 60-day episodes of care as the unit of payment, eliminates the use of the number of therapy visits provided in determining payment and relies more heavily on clinical characteristics and other patient information.
Net service revenue is recorded based on the established Federal Medicare home health payment rate for a 30-day period of care. 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 under PDGM; (c) a partial payment if a patient transferred to another provider or from another provider before completing the 30-day period of care; and (d) the applicable geographic wage index. Payment for non-routine supplies are now 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 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 as a reduction to revenue and 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 payment reviews based on our historical experience and success rates in the claim appeals and adjudication process.
8


AMEDISYS, INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


The Medicare home health benefit requires that beneficiaries be homebound (meaning that the beneficiary is unable to leave their 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. In order to provide greater flexibility during the novel coronavirus pandemic ("COVID-19"), CMS has relaxed the definition of homebound status. During the pandemic, a beneficiary is considered homebound if they have been instructed by a physician not to leave their home because of a confirmed or suspected COVID-19 diagnosis or if the patient has a condition that makes them more susceptible to contracting COVID-19. Therefore, if a beneficiary is homebound due to COVID-19 and requires skilled services, the services will be covered under the Medicare home health benefit.
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, the Company accounts 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.
As noted above, under PDGM, we are now reimbursed for 30-day periods of care rather than 60-day episodes 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 payment period. 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.
A portion of reimbursement from each Medicare episode is billed near the start of each 30-day period of care, and cash is typically received before all services are rendered. Any cash received from Medicare for a request for anticipated payment (“RAP”) for a 30-day period of care that exceeds the associated revenue earned is recorded to accrued expenses within our condensed consolidated balance sheets.
Non-Medicare Revenue
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 which generally range from 90% to 100% of Medicare rates.
Non-episodic based Revenue. 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. 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.
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 net Medicare hospice service revenue for the three and nine-month periods ended September 30, 2020 and 99% of our total net Medicare hospice service revenue for the three and nine-month periods ended September 30, 2019. 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 (“RN”) or medical social worker (“MSW”) 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.
9


AMEDISYS, INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


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 experience, which primarily includes a historical collection rate of over 99% on Medicare claims, and record it during the period services are rendered.
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 28th of the following year. As of September 30, 2020, we have recorded $9.9 million for estimated amounts due back to Medicare in accrued expenses for the Federal cap years ended October 31, 2013 through September 30, 2020; $2.6 million of this balance was acquired with the AseraCare acquisition. As of December 31, 2019, we had recorded $5.7 million for estimated amounts due back to Medicare in accrued expenses for the Federal cap years ended October 31, 2013 through September 30, 2020.
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.
Personal Care Revenue Recognition
Personal Care Revenue
We generate net service revenues by providing our services directly to patients based on authorized hours, visits or units determined by the relevant agency, at a rate that is either contractual or fixed by legislation. Net service revenue is recognized at the time services are rendered based on gross charges for the services provided, reduced by estimates for contractual and non-contractual revenue adjustments. We receive payment for providing such services from payors, including state and local governmental agencies, managed care organizations, commercial insurers and private consumers. Payors include the following elder service agencies: Aging Services Access Points (ASAPs), Senior Care Options (SCOs), Program of All-Inclusive Care for the Elderly (PACE) and the Veterans Administration (VA).
Government Grants
In the absence of specific guidance to account for government grants under U.S. GAAP, we have decided to account for government grants in accordance with International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance, and as such, we recognize grant income on a systematic basis in line with the recognition of expenses or the loss of revenues for which the grants are intended to compensate. We recognize grants once both of the following conditions are met: (1) we are able to comply with the relevant conditions of the grant and (2) the grant will be received. See Note 10 - Novel Coronavirus Pandemic ("COVID-19") for additional information on our accounting for government funds received under the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") and the Mass Home Care ASAP COVID-19 Provider Sustainability Program.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include certificates of deposit and all highly liquid debt instruments with maturities of three months or less when purchased. Our cash balance as of September 30, 2020 includes approximately $81 million associated with the CARES Act Provider Relief Fund ("PRF"). We separated the PRF funds into their own account during the three-month period ended June 30, 2020. As of September 30, 2020, we have only transferred funds used during the six-month period ended June 30, 2020 to our operating account. We will transfer funds used during the three-month period ended September 30, 2020 to our operating account in the fourth quarter.
10


AMEDISYS, INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Restricted cash includes cash that is not available for ordinary business use. As of September 30, 2020, we had $2.5 million of restricted cash that was placed into escrow accounts related to the indemnity and closing payment adjustment provisions within the Asana Hospice and AseraCare Hospice purchase agreements ($1.5 million and $1.0 million, respectively).
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. As of September 30, 2020, there is no single payor, other than Medicare, that accounts for more than 10% of our total outstanding patient receivables. 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 represent 63% and 58% of our patient accounts receivable at September 30, 2020 and December 31, 2019, 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 submit a RAP for 20% of our estimated payment for each 30-day period of care. The full amount of the payment for each 30-day period of care is billed after the period of care has been completed (“final billed”). The RAP received for that billing period is then deducted from our final payment. If a final bill is not submitted within the greater of 90 days from the start of the 30-day period of care, or 60 days from the date the RAP was paid, any RAPs received for that billing period will be recouped by Medicare from any other claims in process for that particular provider number. The RAP claim must then be resubmitted. CMS has mandated the full elimination of RAPs in 2021.
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 Personal 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.
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 InstrumentCarrying Value as of September 30, 2020Quoted Prices in Active
Markets for Identical
Items
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
Long-term obligations$311.5 $ $317.2 $ 
11


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.

</