North Tide Capital Ups Stake In Amedisys Inc (AMED) To Over 10%

North Tide Capital, managed by Conan Laughlin, has disclosed upping its passive stake in Amedisys Inc (NASDAQ:AMED). The fund has raised its position to 3.35 million shares from 3.20 million shares held previously, according to an amended filing. The new position represents 10.24% of common stock.

Amedisys Inc (NASDAQ:AMED) is a health care at home company that delivers personalized home health and hospice care to more than 360,000 patients each year. Recently, the company finalized its settlement to bring to an end the civil investigation brought by the U.S. Department of Justice (DOJ), according to a statement.

The DOJ civil investigation involved Medicare reimbursement for home health services provided by certain Amedisys Inc (NASDAQ:AMED) care centers from January 1, 2008, through December 31, 2010. The settlement also resolves a previously disclosed Stark Law issue regarding care coordination services provided to a physician practice group in exchange for compensation that was not consistent with fair market value during the period April 1, 2008, through April 30, 2012, which the company voluntarily self-disclosed to the Centers for Medicare and Medicaid Services.

Under the terms of the civil settlement, the company will pay a total of $150 million plus interest in two installments. The first installment of $115 million plus interest must be paid by May 2, 2014, and the remaining $35 million plus interest must be paid by October 23, 2014. The company will fund the settlement through cash on hand and draws upon its existing credit facility.

Other significant investors of the company include D. E. Shaw and Charles Clough’s Clough Capital Partners, holding 555,446 shares and 272,800 shares, respectively.

Boston-based North Tide Capital was founded by Conan Laughlin in 2011. The fund focuses on the healthcare industry and has an estimated about $850 million in assets. Prior to North Tide Capital, Conan served as a portfolio manager at Israel Englander’s Millennium Management LLC.

North Tide Capital’s equity portfolio value was around $1.1 billion at the end of the fourth quarter of 2013, up from $953.3 million in the third quarter. Last month, the fund disclosed a 5.99% passive stake Orthofix International NV (NASDAQ:OFIX), owning 1.09 million shares.

Disclosure: none

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