Stoneridge Partners announced that the home health index, which is comprised of the four public home health care agencies, hit a seven-month low following CMS’ June 27 announcement of proposed Medicare home health payment rates for 2014. The proposed would set rebasing at the maximum reduction of 3.5% for each of the next four years.
Although this is just a proposal it sent a shock wave to the stocks in our Stoneridge Partners Home Health Index, causing the index to drop over 10% in just a few hours, something Stoneridge Partners noted they have not seen in their 10 years of tracking.
Until the announcement, the HH Index had been up, however it’s now down about 7% for the month and 5% YTD. On the good news front, the index is still up from a year ago.
Here are the results for the HH Index: (more…)