Amedisys Inc (AMED) Earnings: An Early Look – Humana Inc (HUM), Gentiva Health Services, Inc. (GTIV)

More broadly, though, Amedisys Inc (NASDAQ:AMED) could see long-term gains from health-care reform, as the Affordable Care Act brings more patients into the health-insurance market. The question, though, is whether the Medicare reimbursement rates that Amedisys, Gentiva Health Services, Inc. (NASDAQ:GTIV) , and LHC Group, Inc. (NASDAQ:LHCG) rely on will remain at their current levels. As Obamacare imposes new cost pressures on the industry, Amedisys and its peers will have to navigate carefully to keep their profits up, especially in light of some of the allegations these companies faced in previous years over their Medicare practices.

In its coming quarterly report, watch for Amedisys Inc (NASDAQ:AMED) to discuss whether its relationships with other major health-insurance companies are seeing the same pressures that led to the Humana Inc (NYSE:HUM) deal. If other insurers force Amedisys to accept pay cuts, then the stock could lose some of its recent gains.

The article Amedisys Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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