Atlanta,January 10,2026 – Aveanna Healthcare Holdings (NASDAQ: AVAH) is strategically focusing on expanding its presence in existing markets and leveraging preferred payer agreements as it evaluates potential acquisitions in 2026,signaling renewed confidence in the home health sector.
Strategic Density and Payer Partnerships Drive Growth
The company is prioritizing geographic “density” and strong relationships with insurance providers to fuel future expansion.
- The finalization of the CY2026 Medicare home health payment rule, with a less severe rate cut than initially proposed, has created a sense of stability, encouraging investment.
- Revenue growth in 2026 is expected to come from increased patient volume, not rate increases.
CEO Jeff Shaner revealed the company is actively scouting “tuck-in” deals to bolster its geographic footprint, specifically in areas requested by its managed care institution partners. “there are [private duty services] (PDS) states that we’re not in that are national preferred payers want us to be in,” Shaner said at the J.P. Morgan Healthcare conference on Wednesday. “We want to fill in those states over time. There’s no perfect acquisition that does all of that, but we want to continue to chip off those states and add those to our medicaid repertoire.”
what factors are driving Aveanna’s acquisition strategy? The company is prioritizing states like Ohio, West Virginia, Tennessee, and Kentucky, aligning with the needs of its key payer partners and aiming to expand its Medicaid service area.
The acquisition of Thrive Skilled Pediatric Care in 2025 serves as a model for future deals, Shaner noted. Aveanna currently operates in 38 states, offering a range of services including private duty, home health, and hospice care.The company aims to expand its Medicaid operations from 29 states to 35 or 36 over the next two to three years, according to statements made on Wednesday.
Medicare Payment Rule Provides Clarity
The company’s renewed focus on home health is directly linked to the resolution of uncertainty surrounding the CY2026 Medicare home health payment rule. Shaner emphasized that the final rule,which included a less severe rate cut than initially proposed in June,has instilled confidence in the industry.
“For the first time, we saw a light at the end of the tunnel that permanent adjustment would have more rational thought process behind it, which really allows us to invest, it allows us to plan, both as a company and as an industry,” Shaner explained.
Aveanna currently provides home health and hospice services in 14 states and intends to concentrate expansion efforts in the Midwest and Southeast. A “density-first” approach, prioritizing deeper market penetration over broad geographic spread, is becoming increasingly common throughout the home-based care industry.
Chief Financial Officer Matt Buckhalter underscored a cautious approach to mergers and acquisitions. “On the capital allocation standpoint of it, be selective, be picky, be thoughtful,” he said. “We’ve done such a great job of deleveraging and producing pretty meaningful free cash flow here, and so as we continue to do so, being able to tuck in M&A through our free cash flow generation, while keeping in mind, ‘hey, we want to get sub-four times leverage, and have a nice line of sight to do that.’ Make sure you maintain that goal at all times.”
Looking ahead to 2026,Aveanna anticipates revenue growth in its home health,private duty services,and hospice segments will be driven by increased patient volume,rather than rate increases. “And we’re sad about that, but that’s a great story for us, and one that we’re very cozy with,” Shaner said.
On Wednesday, Aveanna also updated its full-year guidance for fiscal year 2025, projecting revenue between $2.425 billion and $2.445 billion,an increase from the previously expected $2.375 billion. Initial full-year guidance for 2026 forecasts revenue of $2.54 to $2.56 billion.
