Aveanna Healthcare Boasts Strong End To 2024, Looks Forward To A Bright 2025

Aveanna Healthcare (Nasdaq: AVAH) projects an annual growth rate of approximately 4% from 2023 to 2028.

CEO Jeff Shaner, who assumed the role in 2023 after serving as chief operating officer since 2017, outlined the company’s strategic transformation, which focused on six core principles: standardization, partnerships, government affairs, technology, clinical outcomes, and cost reduction.

Headquartered in Atlanta, Aveanna Healthcare provides a range of pediatric and adult health care services, including nursing, rehabilitation, occupational nursing in schools, therapy services, day treatment centers for medically fragile and chronically ill children and adults, and home health and hospice services.

Key performance metrics highlighted included 50% alignment with preferred payers for private-duty services, 12 state Medicaid rate increases and a 70% episodic payer mix in home health and hospice care. The company aims for a 10% long-term revenue growth target, with 7% organic growth and 3% from acquisitions.

With 327 locations across 33 states, company leaders forecast approximately $2 billion in revenue and an adjusted EBITDA of $168 million for 2024.

Shaner identified private-duty services, home health and hospice as priority areas for M&A in the near future. He also announced a strong capital structure with $275 million in liquidity and no debt maturities until 2028.

“We’re absolutely ready for M&A in [private-duty services, home health and hospice],” Shaner said at the JP Morgan Healthcare Conference. “We’ve got an efficient operation finishing our modernization project for 2024. We’re ready for continued organic growth and M&A growth, so this is an area we’re acutely focused on – leveraging our size and scale to fill open geographies in our private-duty services segment.”

Private-duty nursing services are expected to grow as patient demand currently exceeds the supply of caregivers. These services are provided one-on-one in the comfort of the patient’s home. The company currently serves 38,000 private duty patients across 27 states, operating with a gross margin of 26% to 28% and reporting revenue of $1.617 billion.

Focusing specifically on the home health and hospice segment, leaders announced projected revenue of $218 million, with a gross margin ranging from 48% to 50% and an organic growth rate between 5% and 7%. The company serves more than 13,500 patients across 15 states with 83 locations.

Shaner said he sees opportunities in 2025 to enhance value driven by the company’s investment in a value-based national home care platform.

“Aveanna is a comprehensive platform with a diverse payer base providing cost-effective patient-preferred alternatives to higher cost settings,” Shaner said. “Our focus on care in the home aligns with the overwhelming trend in health care to provide high-quality care and lower-cost care settings. By aligning our capacity with the needs of our preferred payers and government partners, we can invest in caregiver wages and accelerate caregiver hiring and overall growth trends.”

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