Why Amedisys Shares Slumped 24.6% in July
Amedisys Inc. (NASDAQ: AMED) shares lost nearly 25% of their value last month, according to S&P Global Market Intelligence. The drop was caused by word that the the federal government's Centers for Medicare and Medicaid Services (CMS) may cut reimbursement for home healthcare by 0.4% next year and redesign its payment scheme altogether in 2019.
Home healthcare providers rely heavily on Medicare for their revenue, and that means share prices can pop or drop depending on the payment proposals issued by the agency, which operates under the Department of Health and Human Services.
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Source: Fool.com