, the home health
operator that has struggled in recent quarters to meet earnings expectations, reported a significant improvement in its performance during the second quarter.
The Baton Rouge, La.-based company posted a 37.9% increase in net income even as net revenue declined for the quarter.
Amedisys has been closing or divesting unprofitable care centers, a move that has also helped it cut costs in the quarter.
The company reported $8 million in net income
on $305 million in net service revenue for the latest quarter compared with $5.8 million in income on $316 million in revenue during the second quarter of 2013.
Despite the improvement, executives stressed on an earnings call that the results may not be directly comparable, year-over-year, because of the 79 care centers the company has closed since June 2013.
“We are optimistic about the second half of the year,” interim CEO Ronald LaBorde said on an earnings call. However, “the second quarter is historically our best quarter of the year and there is still much work to be done to achieve our desired level of performance on a consistent basis.”
Amedisys’ home health business outperformed its hospice business. While total admissions fell 7.9% at its 316 care centers, the company’s operating income increased 21.1% as its cost of service declined.
In its 80 hospice centers, admissions declined 7.4% and operating income declined 21.6%.
Amedisys is nearing the end of its review with the Boston Consulting Group
, hired to help turn around its performance, LaBorde said. The company has incurred $3 million in consulting and restructuring costs.Follow Beth Kutscher on Twitter: @MHbkutscher