Home Health Stocks Suffer Fallout From Senate Investigation
Stocks for three home health care providers fell Tuesday after the Senate Finance Committee released findings of an investigation that indicated these companies "gamed the Medicare system."
Market Watch: Home-Health Firms Keep Getting Hammered
Shares of three providers of home health care continued to tumble Tuesday, a day after the Senate Finance Committee found they gamed the Medicare system by pushing profitable treatments that often were not medically necessary. Gentiva Health Services Inc. took the biggest tumble, falling by 20 percent in morning trades, though an afternoon rally helped it gain back some of that, and so it finished down 18 percent to $3.02. Gentiva, along with Amedisys Inc. and LHC Group Inc., were named by the Senate panel as those who participated in the practice (Britt, 10/4).
Reuters: Home Health Stocks Crash on Criminal Probe Speculation
Shares of Amedisys (AMED.O), Gentiva Health (GTIV.O) and LHC Group (LHCG.O) tumbled for a second straight day on Tuesday on fears that the home health care providers may face criminal investigations after a U.S. Senate committee accused them of "gaming" the Medicare system. Amedisys shares fell 22 percent to $10.34, their lowest in over seven years, while Gentiva Health crashed by a similar percentage to a life-low of $2.86. LHC Group shares lost 10 percent of their value to hit a 5-year low of $14.06 (10/4).