Amedisys (AMED) 8-K Regulation FD Disclosure

Amedisys, Inc.

www.amedisys.com

NASDAQ: AMED

January 2007

Exhibit 99.1

1

Statements

contained

in

this

presentation

which

are

not

historical

facts

are

forward-looking

statements.

These

forward-looking

statements

and

all

other

statements

that

may

be

contained

in

this

presentation

that

are

not

historical

facts

are

subject

to

a

number

of

risks

and

uncertainties,

and

actual

results

may

differ

materially

than

those

forecasted.

Such

forward-looking

statements

are

estimates

reflecting

the

best

judgment

of

Amedisys,

Inc.

management

based

upon

currently

available

information.

Certain

factors

which

could

affect

the

accuracy

of

such

forward-looking

statements

are

identified

in

the

public

filings

made

by

Amedisys,

Inc.

with

the

Securities

and

Exchange

Commission,

and

forward-looking

statements

contained

herein,

or

other

public

statements

of

Amedisys,

Inc.

or

its

management

should

be

considered

in

light

of

those

factors.

Forward Looking Statements

2

Investment Highlights

•

Large, growing and fragmented industry

•

Focus on home nursing and related services to Medicare population

•

Strong internal growth and cash flow with low recurring cap ex

•

Proven operating model supported by sophisticated technology

system

•

Demonstrated ability to identify and integrate acquisitions

•

Substantial liquidity and balance sheet capacity to fund external

growth

•

Extensive delivery platform ideally positioned for Medicare disease

management initiatives and payor diversification

•

Experienced management team

3

Management Team

•

William F. Borne -

Chairman and Chief Executive Officer

-

CEO since founding the Company in 1982

-

Registered nurse, extensive hospital administrative and clinical

experience

•

Larry R. Graham -

President and Chief Operating Officer

-

Joined Amedisys in 1996; COO since 1999; President since 2004

-

General Health Systems

-

Arthur Andersen

•

John F. Giblin, CPA -

Chief Financial

Officer

-

Joined Amedisys in October 2006

-

CFO of Crawford & Company

-

Arthur Andersen

4

Corporate Overview

•

Leading provider of home nursing services

•

275

1

locations primarily in the southern United States

•

Services include skilled nursing and therapy

•

Medicare accounts for approximately 93% of revenue year-to-

date

•

Hospice care accounts for ~

7% of revenue year-to-date

1) As of December 31, 2006

5

14

14

13

13

11

11

26

26

49

49

40

40

18

18

4

4

41

41

16

16

1

1

5

5

1

1

5

5

7

7

3

3

3

3

Our Locations

1

•

Largest home nursing provider in the

southern United States

-

261 home nursing locations

(shown)

-

14 hospice locations

1) As of

December

3, 2006

CON State

Non-CON State

1

1

3

3

6

Our Strategy

•

Focus on Medicare-eligible patients

•

Develop and deploy specialized nursing programs

•

Expand disease management capabilities

•

Prioritize internal growth

•

Select, acquire and integrate quality home care agencies

•

Leverage cost-efficient operating platform

7

•

Home health

care is a $62.8

billion

industry

•

Home nursing

is

the

largest

segment

in the

home health

industry

•

Medicare

spending for

home nursing

totaled $13.1

billion

in 2005

Home Health Care Spending

Home Health Industry Expenditures ($ billions)

Medicare

Home Nursing

$13.1

Home Nursing

(Commercial,

Medicaid &

Other)

$23.3

Home Nursing

$46.1

Infusion

Therapy

$5.5

Durable Medical

Equipment

$2.8

Respiratory

Therapy

$8.4

Hospice $9.7

Source:  Company Reports, CMS and CIBC World Markets Corp. estimates for 2005

8

Home Nursing Market

•

Industry is highly fragmented

•

8,100 Medicare-certified nursing agencies

•

Most are single-site or small local or regional providers:

-

Independently-owned agencies

-

Visiting nurse associations

-

Facility-

and hospital-based agencies

•

Publicly-owned providers account for less than 7% of the

home nursing market

9

Industry Growth Drivers

•

Trend from inpatient to home-based care:

-

Patient preference

-

Payor incentives

-

Technology advancements

•

Demographics –

aging population

•

Increased prevalence of chronic and co-morbid conditions

10

Internal Growth

-

Overall industry growth

-

Expanded and more effective sales force

-

Comprehensive range of clinical programs

-

Enhanced referral source education efforts

-

Increased focus on start-ups

•

Strong internal growth in Medicare admissions

-

Approximately 11% for Q3 2006 and 13% year-to-date

•

Internal growth being driven by:

11

Start-Up Strategy

•

Start-ups typically generate $1.5 -

$2.0 million in run-rate

revenue by the end of their second year of operations

•

~ 18 months to recoup the $250,000 -

$350,000 investment

Yearly Start-Ups

8

13

25

40

36

0

10

20

30

40

2003

2004

2005

2006

2007

* As of December 31, 2006

Completed

Projected

12

Acquisition Strategy

Disciplined approach

•

Acquisition criteria:

-

Defined pricing objectives

-

Targeted geographic profile

-

Compatible payor mix

-

Consistent clinical metrics

-

Expandable referral base

-

Opportunities for internal growth

•

Target hospital-based and multi-site agencies

•

Seven acquisitions over the last twelve months; 15 agencies

representing $20 million in revenues

13

Investments in Technology

•

Strategic advantages from technology

•

Standardized processes:

-

Automated review of assessment forms

-

Automatic scheduling

-

Web-based HR and payroll system

•

Centralized management of clinical oversight/utilization:

-

Real-time episode analysis

-

Daily/weekly review of quality indicators

-

Executive information system

•

Point of care roll-out currently underway:

-

Rolled out to 72 sites as of 9/30/06 and 90 by year-end 2006

-

Target completion date: June 2007

-

Expect $1.0 -

$1.5 million in quarterly savings beginning 3Q 2007

-

One-time cap ex investment of $9 -

$10 million

14

Comprehensive Compliance Program

Local Level

•

Clinical nurse review of

assessments

•

Standardized care plans

•

Physician

review/approval

•

Weekly case conferences

•

Monthly audits

•

End of episode case

review

•

Point-of-care system

enhances clinical

documentation accuracy

with real-time

assessment input

Regional Level

Corporate Level

•

Unannounced

compliance & billing

audits

•

Regional directors

monitor compliance

status and resolve

errors

•

Real-time monitoring

capability of local level

activity via point-of-

care system

•

Semi-annual

clinical/compliance

reviews

•

Compliance review of

metric variances

•

Compliance manager

site visits

•

Compliance training for

all employees

•

Compliance concerns

hotline

•

Annual Sarbanes-Oxley

audit

15

Medicare Prospective Payment System

•

Implemented in October 2000

•

Base payment for 60-day episode of care

-

Adjusted for patient acuity and market factors

-

Reviewed and updated annually

•

Encourages efficient delivery of care

•

Benefits high-quality/low-cost providers

16

Medicare Reimbursement

•

Outlook for 2007 and 2008

-

Market basket

-

Case mix weighting

-

Rural add-on

-

Therapy threshold

17

Financial Highlights

•

Increasing revenue

•

Expanding margins

•

Cash flow/low cap ex requirements

•

Consistent EPS growth

•

Strong balance sheet to fund future growth

18

EBITDA

is

net

income

before

provision

for

income

taxes,

net

interest

expense,

and

depreciation

and

amortization.

EBITDA

should

not

be

considered

as

an

alternative

to,

or

more

meaningful

than,

income

before

income

taxes,

cash

flow

from

operating

activities,

or

other

traditional

indicators

of

operating

performance.

Rather,

EBITDA

is

presented

because

it

is

a

widely

accepted

supplemental

financial

measure

that

we

believe

provides

relevant

and

useful

information.

Our

calculation

of

EBITDA

may

not

be

comparable

to

a

similarly

titled

measure

reported

by

other

companies,

since

all

companies

do

not

calculate

this

non-GAAP

measure

in

the

same

manner.

1)

Per

share

amounts

have

been

adjusted

for

the

4:3

split

announced

by

the

Company

on

October

25,

2006.

The

record

date

for that split is November 27, 2006.

Summary Financial Results

1

CY2004

CY2005

2005

2006

Net revenue

$227.1

$381.6

$262.7

$397.1

Period-over-period growth

59.4%

68.0%

61.5%

51.2%

Gross margin

131.0

218.5

152.1

224.8

Margin

57.7%

57.3%

57.9%

56.6%

Operating income

33.4

50.1

38.2

46.5

Margin

14.7%

13.1%

14.5%

11.7%

EBITDA

37.4

57.2

43.3

53.8

Margin

16.4%

15.0%

16.5%

13.5%

Fully-diluted EPS

$1.14

$1.41

$1.08

$1.23

Period-over-period growth

81.0%

23.7%

28.6%

13.9%

Nine Months

Ended September 30,

($ millions, except per share data)

19

EBITDA

is

net

income

before

provision

for

income

taxes,

net

interest

expense,

and

depreciation

and

amortization.

EBITDA

should

not

be

considered

as

an

alternative

to,

or

more

meaningful

than,

income

before

income

taxes,

cash

flow

from

operating

activities,

or

other

traditional

indicators

of

operating

performance.

Rather,

EBITDA

is

presented

because

it

is

a

widely

accepted

supplemental

financial

measure

that

we

believe

provides

relevant

and

useful

information.

Our

calculation

of

EBITDA

may

not

be

comparable

to

a

similarly

titled

measure

reported

by

other

companies,

since

all

companies

do

not

calculate

this

non-GAAP

measure

in

the

same

manner.

($ millions, except per share data)

Summary Quarter Financial Results

Q1

Q2

Q3

Net revenue

$127.2

$132.9

$137.0

Period-over-period growth

80.6%

66.0%

22.2%

Gross margin

71.4

76.2

77.2

Margin

56.2%

57.4%

56.3%

Operating income

12.7

15.7

18.2

Margin

10.0%

11.8%

13.3%

EBITDA

15.2

18.2

20.4

Margin

11.9%

13.7%

14.9%

Fully-diluted EPS

$0.34

$0.42

$0.48

Period-over-period growth

---

10.5%

33.3%

Calendar Year 2006

20

2004

Net Revenue

•

Revenue of $381.6 million       

in 2005; 68.0% year-over-

year growth

•

Revenue of $397.1 million     

year-to-date 2006; 51.2%

period-over-period growth

•

Revenue of $137.0 million

for 3Q 2006; 22.2%

quarter-over-quarter growth

•

Strong internal growth

Year-Over-Year Revenue

($ millions)

$0

$100

$200

$300

$400

$500

2003

2005

YTD 2006

Quarterly Revenue

($ millions)

$0

$20

$40

$60

$80

$100

$120

$140

$160

Q1

Q2

Q3

Q4

2005

2006

21

EBITDA

1

•

EBITDA of $57.2 million in

2005; 52.9% year-over-year

increase

•

EBITDA of $53.8 million

year-to-date 2006; 24.2%

period-over-period

increase

•

EBITDA of $20.4 million for 

3Q 2006; 25.8% quarter-

over-quarter increase

1)

EBITDA

is

net

income

before

provision

for

income

taxes,

net

interest

expense,

and

depreciation

and

amortization.

EBITDA

should

not

be

considered

as

an

alternative

to,

or

more

meaningful

than,

income

before

income

taxes,

cash

flow

from

operating

activities,

or

other

traditional

indicators

of

operating

performance.

Rather,

EBITDA

is

presented

because

it

is

a

widely

accepted

supplemental

financial

measure

that

we

believe

provides

relevant

and

useful

information.

Our

calculation

of

EBITDA

may

not

be

comparable

to

a

similarly

titled

measure

reported

by

other

companies,

since

all

companies

do

not

calculate

this

non-GAAP

measure

in

the

same

manner.

Year-Over-Year EBITDA

($ millions)

$0

$10

$20

$30

$40

$50

$60

$70

2003

2004

2005

YTD 2006

Quarterly EBITDA

($ millions)

$0

$10

$20

$30

Q1

Q2

Q3

Q4

2005

2006

22

Earnings Per Share

1

•

Fully-diluted EPS of $1.41

for 2005; 23.7% year-over-

year increase

•

Fully-diluted EPS of $1.23

year-to-date 2006; 13.9%

period-over-period

increase

•

Fully-diluted EPS of $0.48

for 3Q 2006; 33.3%

quarter-over-quarter

increase

1)

Results

have

been

adjusted

for

the

4:3

split

announced

by

the

Company

on

October

25,

2006.

The

record

date

for

that

split

is

November

27,

2006.

Year-Over-Year EPS

1

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

2003

2004

2005

YTD 2006

Quarterly EPS

1

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

Q1

Q2

Q3

Q4

2005

2006

23

Capitalization Summary

($ in thousands)

September 30, 2006

Actual

Adjusted

Cash and cash equivalents

$9,855

$84,655

Debt and capital lease obligations:

Long-term debt, including current portion

$47,137

$4,012

Capital lease obligations, including current portion

792

792

Total debt and capital lease obligations

47,929

4,804

Stockholders' equity

231,754

348,688

Total capitalization

$279,683

$353,492

Net debt / LTM EBITDA

0.6x

---

24

Guidance

1)

Excludes one time charges associated with payment in full and termination of the Company’s credit agreement.

2)

Assumes no market basket increase or utilization of proceeds.

CY2006

1

Net revenue:

$530 -

$540 million

EPS:

$1.73 -

$1.77

Diluted shares:

22.3 million

CY2007

2

Organic revenue growth:

~ 15%

EBITDA margin:

~ 15%

25

Investment Highlights

•

Large, growing and fragmented industry

•

Focus on home nursing and related services to Medicare population

•

Strong internal growth and cash flow with low recurring cap ex

•

Proven operating model supported by sophisticated technology

system

•

Demonstrated ability to identify and integrate acquisitions

•

Substantial liquidity and balance sheet capacity to fund external

growth

•

Extensive delivery platform ideally positioned for Medicare disease

management initiatives and payor diversification

•

Experienced management team

26

Contact Information

Larry Graham

President/COO

Amedisys, Inc.

5959 S. Sherwood Forest Boulevard

Baton Rouge, LA 70816

Office –

225.292.2031

Fax –

225.295.9624

lgraham@amedisys.com

John Giblin

CFO

Amedisys, Inc.

5959 S. Sherwood Forest Boulevard

Baton Rouge, LA 70816

Office –

225.292.2031

Fax –

225.295.9624

jgiblin@amedisys.com