Almost Family’s (AFAM) Other Home-Based Services segment includes traditional personal care services. These services are provided mainly on an hourly basis in peoples’ homes, and they include medication management, meal preparation, caregiver respite, and homemaking.
The segment’s personal care revenues are generated on an hourly basis and mainly come from Medicaid and other government programs. The company currently operates 75 personal care locations. Its Other Home-Based Services segment represented 23% of its total revenue in 2017.
Almost Family’s third business segment, Healthcare Innovation, includes an ACO (accountable care organization) enablement company, an in-home assessment company serving the long-term care insurance industry, and an investment in a population health analytics company.
Revenue in the Home Health segment rose from $434.9 million in 2016 to $586 million in 2017. Revenue from the Other Home-Based Services segment rose from $162.5 million in 2016 to $184.7 million in 2017.
Revenue from the Healthcare Innovations segment was $26.1 million, or 3.3% of the company’s total revenue, in 2017. The segment’s increased revenue was mainly attributable to Almost Family’s CHS-JV acquisition.
The gross margins of the Home Health, Other Home-Based Services, and Healthcare Innovations segments were 51%, 34%, and 61.5%, respectively, in 2017.
Between March 14, 2017, and March 13, 2018, the share price of Almost Family rose 21.2%. The share prices of peers Tenet Healthcare (THC), BioScrip (BIOS), and Addus Homecare (ADUS) rose 31.8%, 37.8%, and 24.5%, respectively, in a similar period, outperforming Almost Family.
In the next part of the series, we’ll take a look at Almost Family’s financial performance.