Direct Answer
3 SEC filers are classified under the Standard Industrial Classification code that describes the home health industry, and their latest annual reports show $10.6 billion of combined revenue and a median operating margin of 10.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Home health companies provide skilled nursing, therapy and personal care to patients at home and are paid by Medicare, Medicaid and insurers. Reimbursement rates, referral relationships and clinician labor determine margins. The first numbers to compare across companies here are admissions and episodes, revenue per episode and labor cost per visit.
Key Industry Metrics
- Admissions and episodes: Number of patients accepted and care periods billed. Payment is usually per episode, so these counts drive revenue.
- Revenue per episode: Average payment per care period. It is set largely by Medicare rules and patient mix, so rate updates change it regardless of volume.
- Labor cost per visit: Nursing and therapy cost per home visit. Rising wages and travel time raise it, so check it against payment updates.
- Referral sources: Where patients come from, such as hospitals and physicians. A narrow set of referrers makes volume vulnerable to the loss of one relationship.
- Operating margin: Share of revenue left after operating costs. It reflects payment rates, labor cost and visit efficiency, so compare it with peers using similar payer mix.
Primary Macro Drivers
- Aging population: Older patients are the main users of home care after hospital stays, so a growing older population raises admissions and episodes.
- Medicare payment rules: Medicare pays a set amount per period of care, so annual rule changes move revenue per episode and margin directly.
- Hospital discharge patterns: Hospitals decide where patients go after discharge, so discharge volumes and relationships set admissions.
- Staffing availability: Care depends on nurses and therapists, so their availability limits admissions and drives labor cost per visit.
Major Risks
- Reimbursement cuts: Rate reductions or case-mix changes lower revenue per episode while labor costs keep rising; watch final payment rules and revenue per episode.
- Labor shortages: Shortages force overtime, agency staff and turned-away referrals, which raise cost and lower volume; watch labor cost per visit.
- Regulatory audits: Reviews of billing and documentation can lead to repayments and delayed payments; watch legal notes and cash collections.
- Managed care penetration: As more patients join private Medicare plans, payments can be lower and approvals tighter; watch the share of managed care in admissions.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | Low |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Home Health Filers in the SEC Record
3 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 8082. Their latest fiscal years end between 2025 and 2026, and together they reported $10.6 billion of revenue. Median revenue growth over the prior year was 13.0%. Median operating margin was 10.5% and median net margin 0.0%. Median total liabilities were 62% of total assets, and 3 of 3 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Option Care Health, Inc. | $5.6 billion | 13.0% | 6.0% | 3.7% | FY 2025 |
| Chemed Corp | $2.5 billion | 4.1% | 13.4% | 0.0% | FY 2025 |
| Aveanna Healthcare Holdings, Inc. | $2.4 billion | 20.2% | 10.5% | 0.0% | FY 2026 |
Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Home Health guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Home Health industry?
Key performance indicators for the Home Health industry include: Admissions and episodes, Revenue per episode, Labor cost per visit, Referral sources, Operating margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Home Health industry?
The Home Health industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.
What are the biggest risks in the Home Health industry?
The primary risks for Home Health companies include: Reimbursement cuts, Labor shortages, Regulatory audits, Managed care penetration. Investors should assess each company's exposure to these factors and its track record of navigating them.