Document


	June 30, 2025
Assets acquired
Current assets:
Accounts receivable	$	10,098
Prepaid expenses and other current assets	11
Total current assets	10,109
Property and equipment, net	262
Operating lease right-of-use assets	2,595
Restricted and other assets	10
Indefinite-lived intangibles	2,332
Total assets acquired	$	15,308
Liabilities assumed
Current liabilities:
Accrued wages and related liabilities	$	1,719
Operating lease liabilities—current	850
Other accrued liabilities	294
Total current liabilities	2,863
Long-term operating lease liabilities—less current portion	1,682
Other long-term liabilities	44
Total liabilities assumed	$	4,589

Amedisys, Inc. (“Amedisys”, or the “Company”) is a leading healthcare services company committed to helping our patients age in place by providing clinically excellent care and support in the home. Amedisys’ operations involve servicing patients through home health, hospice, and high acuity care.

On June 26, 2023, Amedisys, UnitedHealth Group Incorporated, a Delaware corporation (“UnitedHealth”), and Aurora Holdings Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of UnitedHealth (“Merger Sub”), entered into an Agreement and Plan of Merger, pursuant to which Merger Sub will merge with and into Amedisys with Amedisys continuing as the surviving corporation and becoming a wholly owned subsidiary of UnitedHealth. The consummation of the Merger occurred on August 14, 2025.

On April 30, 2025, the Pennant Group, Inc. (“Pennant”) entered into a purchase agreement (the “Purchase Agreement”), as subsequently amended by the First Amendment to Purchase Agreement dated October 1, 2025 (the “Amendment” and the Purchase Agreement as so amended by the Amendment, the “Amended Agreement”), by and among its wholly-owned subsidiaries, Cornerstone Healthcare, Inc. (“Equity Buyer”) and Tensaw River Healthcare LLC (“Asset Buyer”), and UnitedHealth, Amedisys, and certain other sellers (collectively, the “Sellers”). Pursuant to the Amended Agreement, Equity Buyer agreed to acquire from the Sellers certain equity interests in, and Asset Buyer agreed to acquire from the Sellers certain assets of, certain subsidiaries of UnitedHealth and Amedisys related to providing home health, hospice, or palliative care services through certain providers (the “Transaction”). The Transaction closed on October 1, 2025 (the “Closing Date”).

Basis of Presentation - The accompanying abbreviated financial statements, which consist of the statement of revenue and direct expenses for the six months ended June 30, 2025, the statement of assets acquired and liabilities assumed as of June 30, 2025, and the related notes thereto, will henceforth be collectively referred to as the “Abbreviated Financial Statements”. The Abbreviated Financial Statements were prepared for the purpose of complying with the requirements of Rule 3-05 of the U.S. Securities Exchange Commission Regulation S-X and present the assets acquired and liabilities assumed and the related revenue and direct expenses of the subsidiaries of Amedisys. The Abbreviated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The subsidiaries did not represent a substantial portion of Amedisys’ assets and liabilities. It is impracticable to prepare complete financial statements related to the subsidiaries as Amedisys has not maintained the distinct and separate books and records necessary to prepare full stand-alone or carve-out financial statements. As a result, the statement of revenue and direct expenses was derived from the operating activities directly attributable to the subsidiaries from Amedisys’ books and records and contains certain estimates and allocation methodologies. Although management is unable to determine all of the actual costs, expenses and resulting operating results associated with the subsidiaries, it considers the allocation of such items to be reasonable for the periods presented. However, the revenue and direct expenses of the subsidiaries may differ from the results that would have been achieved had the subsidiaries operated as a separate entity and may not necessarily reflect the assets and liabilities or revenue and expenses of the subsidiaries on a stand-alone basis in the future.

In addition, and as described further below, the statement of revenue and direct expenses excludes corporate overhead costs borne by Amedisys to support the subsidiaries. As such, the statement is not indicative of the future results of the subsidiaries as it omits various operating expenses that Pennant will incur to operate the subsidiaries in the future.

Amedisys performed certain functions for the subsidiaries including, but not limited to, corporate management, certain legal services, administration of insurance, regulatory and compliance, treasury, information systems, finance, corporate income tax administration, employee compensation and benefit management, facilities and other corporate expenses. The costs of these functions historically have not been allocated to its services, and are not directly attributable or specifically identifiable to the subsidiaries, and therefore, are not included in the Abbreviated Financial Statements. Income taxes and interest expense have not been included in the accompanying statements as these expenses are not specifically attributable to the subsidiaries. As the subsidiaries have historically been managed as part of the operations of the Company and have not been operated as stand-alone

Estimates and Assumptions - The preparation of the Abbreviated Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Abbreviated Financial Statements and the reported amounts of revenue and expenses during the reporting period. The most significant estimates in the Abbreviated Financial Statements relate to revenue recognition and intangible assets. Actual results could differ from those estimates.

Revenue Recognition - Revenues are recognized when services are provided to the patients at the amount that reflects the consideration to which the Company expects to be entitled from patients and third-party payors, including Medicaid, Medicare and insurers (private and Medicare replacement plans), in exchange for providing patient care. Revenue recognized from healthcare services are adjusted for estimates of variable consideration to arrive at the transaction price. The Company determines the transaction price based on contractually agreed-upon amounts or rates, adjusted for estimates of variable consideration. The Company uses the expected value method in determining the variable component that should be used to arrive at the transaction price, using contractual agreements and historical reimbursement experience within each payor type. The amount of variable consideration which is included in the transaction price may be constrained and is included in the net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. If actual amounts of consideration ultimately received differ from the Company’s estimates, the Company adjusts these estimates, which would affect net service revenue in the period such variances become known.

As the Company’s contracts have an original duration of one year or less, the Company uses the practical expedient applicable to its contracts and does not consider the time value of money. Further, because of the short duration of these contracts, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. In addition, the Company has applied the practical expedient provided by Accounting Standard Codification (“ASC”) Topic 340, Other Assets and Deferred Costs, and all incremental customer contract acquisition costs are expensed as they are incurred because the amortization period would have been one year or less. See Note 3, Revenue and Accounts Receivable.

Property and Equipment, net - Property and equipment are initially recorded at their historical cost. Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable assets (ranging from two to seven years). Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the remaining lease term. Repairs and maintenance are expensed as incurred.

Intangible Assets - The Company’s indefinite-lived intangible assets consist of certificates of need and Medicare licenses. The Company tests indefinite-lived intangible assets for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable.

Revenue is recognized when services are provided to the patients at the amount that reflects the consideration to which the Company expects to be entitled from patients and third-party payors, including Medicaid, Medicare and managed care programs (Commercial, Medicare Advantage and Managed Medicaid plans). The healthcare services in home health and hospice patient contracts include routine services in exchange for a contractual agreed-upon amount or rate. Routine services are treated as a single performance obligation satisfied over time as services are rendered. As such, patient care services represent a bundle of services that are not capable of being distinct within the context of the contract. Additionally, there may be ancillary services which are not included in the rates for routine services, but instead are treated as separate performance obligations satisfied at a point in time, if and when those services are rendered.

Revenue recognized from healthcare services are adjusted for estimates of variable consideration to arrive at the transaction price. The Company determines the transaction price based on contractually agreed-upon amounts or rate, adjusted for estimates of variable consideration. The Company uses the expected value method in determining the variable component that should be used to arrive at the transaction price, using contractual agreements and historical reimbursement experience within

each payor type. The amount of variable consideration which is included in the transaction price may be constrained and is included in the net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. If actual amounts of consideration ultimately received differ from the Company’s estimates, the Company adjusts these estimates, which would affect net service revenue in the period such variances become known.

The Company records revenue from Medicare, Medicaid and managed care programs as services are performed at their expected net realizable amounts under these programs. The Company’s revenue from governmental and managed care programs is subject to audit and retroactive adjustment by governmental and third-party agencies. Consistent with healthcare industry accounting practices, any changes to these governmental revenue estimates are recorded in the period the change or adjustment becomes known based on final settlement.


	Six Months Ended June 30, 2025
	Home Health and Hospice Services
	Home Health Services(a)		Hospice Services		Total Revenue		Revenue %
Medicare	$	18,957	$	6,134	$	25,091	60.8	%
Medicaid	582		186		768		1.9
Subtotal	19,539		6,320		25,859		62.7
Managed care	12,646		82		12,728		30.8
Private and other	2,675		—		2,675		6.5
Total revenue	$	34,860	$	6,402	$	41,262	100.0	%

The Company has operating leases, primarily for offices, that expire at various dates over the next six years. The office leases generally contain renewal options for periods ranging from one to five years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term, and payments associated with the option years are excluded from lease payments. The office leases also generally include termination options, which allow for early termination of the lease after the first one to three years. Because the Company is not reasonably certain to exercise these termination options, the options are not considered in determining the lease term; payments for the full lease term are included in lease payments. The office leases do not contain any material residual value guarantees.


Year	Amounts
2025 (Remainder)	$	467
2026	931
2027	655
2028	368
2029	266
Thereafter	104
Total lease payments	2,791
Less: present value adjustments	(259)
Present value of total lease liabilities	2,532
Less: current lease liabilities	(850)
Long-term lease liabilities	$	1,682

The Company has evaluated subsequent events through December 16, 2025, the date on which these Abbreviated Financial Statements were available to be issued, and is not aware of any items that that would require adjustment to or disclosure in these Abbreviated Financial Statements and related notes.


			Page
Abbreviated Financial Statements:
Statement of Revenue and Direct Expenses for the six months ended June 30, 2025 (Unaudited)			3
Statement of Assets Acquired and Liabilities Assumed as of June 30, 2025 (Unaudited)			4
Notes to Abbreviated Financial Statements			5


	Six Months Ended June 30, 2025

Revenue	$	41,262

Direct expenses
Cost of services	32,871
Rent—cost of services	644
Depreciation and amortization	173
Total direct expenses	33,688
Revenue less direct expenses	$	7,574


	June 30, 2025
Equipment	$	598
Furniture and fixtures	501
Leasehold improvements	99
Total property and equipment	1,198
Less: accumulated depreciation	(936)
Property and equipment, net	$	262


	June 30, 2025
Operating Leases:
Weighted-average remaining lease term (years)	3.34
Weighted-average discount rate	5.3	%


(a)						Revenue derived from palliative care services is presented as part of Home Health Services.


	June 30, 2025
Medicare	$	5,385
Medicaid	828
Managed care	3,203
Private and other	682
Accounts receivable	$	10,098


	June 30, 2025
Accrued self-insurance liabilities	$	230
Accrued legal fees, legal settlements, and other audits	11
Other	53
Other accrued liabilities	$	294