Analyst: Amedisys, LHC Upgraded On Medicare View

NEW YORK (AP) — A First Analysis Securities Corp. analyst upgraded shares of Amedisys Inc. and LHC Group Inc. Monday, saying any health care reform changes to Medicare reimbursement will likely not have a significant impact on the companies.

Baton Rouge, La.-based Amedisys and Lafayette, La.-based LHC provide home health and hospice services.

Analyst Tony Perkins said 2011 cuts should be less severe than those in 2010 if recommendations are passed for 2010.

"In addition, we believe the chances of not passing a health care reform bill this year or passing one that does not cut home health payments are increasing, and we now believe there is a 20 percent chance of no additional home health cuts for 2010," he said. "While we think there is an 80 percent chance of cuts in 2010, we believe the turmoil surrounding health care reform has increased the chances from almost zero to 20 percent that additional home health cuts will not be passed."

He upgraded shares of both companies to "Overweight" from "Equal Weight".