Aveanna Expects ‘Zero Impact’ From Home Health Moratorium – Image for illustrative purposes only (Image credits: Unsplash)
Atlanta-based Aveanna Healthcare is pressing ahead with a major acquisition even as federal regulators roll out a new enrollment freeze for home health and hospice providers. The company reported strong first-quarter results and raised its full-year revenue outlook, signaling that its core operations remain on solid footing. Leadership views the Medicare moratorium as operationally irrelevant to its immediate plans.
Acquisition Moves Forward on Schedule
Aveanna is completing the regulatory review for its $175.5 million purchase of Family First Homecare. The deal is expected to close in late second quarter. Once finalized, the company intends to pursue additional tuck-in acquisitions using available free cash flow, though executives have signaled that any further deals will remain modest in scale. The transaction fits into a broader strategy of measured inorganic growth alongside organic expansion. Aveanna already operates across 39 states with services that span pediatric and adult home nursing, hospice care, and rehabilitation. Executives have described the post-deal approach as thoughtful and disciplined rather than aggressive.
Executive View on the Enrollment Freeze
Chief Executive Jeff Shaner stated that the moratorium will have absolutely no impact on the company’s guidance, results, or M&A activity. He expressed disappointment in the nationwide scope of the policy, noting that it targets fraud, waste, and abuse concentrated in specific markets such as Los Angeles County. Shaner added that the freeze was designed to avoid penalizing existing Medicare beneficiaries or current providers. The company plans to collaborate with the National Alliance of Care at Home and other industry peers over the next six months to help CMS focus enforcement on genuine problem areas. Shaner also highlighted that the policy could limit access in rural communities that already face shortages of home-based care.
Strong Quarterly Results and 2026 Targets
Aveanna posted revenue of $647.9 million in the first quarter, up 15.9 percent from the prior year. Adjusted EBITDA reached $84.4 million, a 25.2 percent increase. The company raised its full-year revenue guidance to a range of $2.56 billion to $2.58 billion. All three business segments showed year-over-year growth, which management attributed to concentrating clinical capacity on preferred payers. In private duty services, Aveanna secured four new preferred payer agreements in the quarter and aims for eight total in 2026. Home health added four agreements against a target of five for the year. On reimbursement, the company achieved three state rate wins in private duty services during the quarter. Shaner described the overall rate environment as stable and noted a shift in focus toward cost-of-living and wage adjustments. The firm expects mid-single-digit state rate enhancements across 2026.
Industry Context and Next Steps
The moratorium reflects ongoing CMS efforts to curb improper payments in home health and hospice. While Aveanna sees no direct effect on its footprint, the policy underscores the need for targeted oversight rather than broad restrictions. Executives intend to use the six-month window to engage directly with regulators and advocate for solutions that protect access in underserved regions. Aveanna’s leadership continues to emphasize both organic growth through payer relationships and selective acquisitions. The combination of rising revenue, improved margins, and a clear acquisition timeline positions the company to navigate the current regulatory environment without altering its core trajectory.
