Amedisys (AMED) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contacts:	Investor Contact:	Media Contact:
	Amedisys, Inc.	Amedisys, Inc.
	Kevin LeBlanc	Jacqueline Chen Valencia
	Director of Investor	Senior Vice President
	Relations	Marketing & Communications
	(225) 292-2031	(225) 295-9688
	kevin.leblanc@amedisys.com	jacqueline.chen@amedisys.com

AMEDISYS REPORTS SECOND QUARTER REVENUE AND EARNINGS AND LOWERS 2011 GUIDANCE

AMEDISYS TO HOST CONFERENCE CALL

TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (August 2, 2011) — Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the three and six-month periods ended June 30, 2011 and lowered 2011 guidance.

Three-Month Periods Ended June 30, 2011 and 2010

• Net service revenue of $373.7 million compared to $422.3 million in 2010, a decrease of $48.6 million or 11.5%. Same store agencies decreased $45.4 million, $15.6 million of the decrease related to agencies closed or consolidated during 2010 offset by $12.4 million in revenue related to start-up and acquisition agencies.

• Net income attributable to Amedisys, Inc. of $21.7 million compared to $32.2 million in 2010, a decrease of $10.5 or 32.7%.

• Diluted earnings per share of $0.75 compared to $1.13 per diluted share in 2010, a decrease of 33.6%. The weighted average number of diluted shares outstanding increased to approximately 29.0 million compared to 28.6 million in 2010.

• Earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $47.7 million compared to $63.4 million in 2010, a decrease of 24.7%.

• After excluding $3.6 million and adding back $1.2 million ($2.2 million and $0.7 million, net of income tax) or $0.08 and $0.02 per diluted share in certain items* for 2011 and 2010, respectively, the following would have been our adjusted results:

• Net income attributable to Amedisys, Inc. of $19.5 million compared to $32.9 million in 2010, a decrease of 40.9%.

• Diluted earnings per share of $0.67 compared to $1.15 per diluted share in 2010, a decrease 41.7%.

• EBITDA of $44.1 million compared to $64.6 million in 2010, a decrease of 31.7%.

Six-Month Periods Ended June 30, 2011 and 2010

• Net service revenue of $738.0 million compared to $835.3 million in 2010, a decrease of $97.3 million or 11.6%. Same store agencies decreased $85.9 million, $31.8 million of the decrease related to agencies closed or consolidated during 2010 offset by $20.4 million in revenue related to start-up and acquisition agencies.

• Net income attributable to Amedisys, Inc. of $36.9 million compared to $68.8 million in 2010, a decrease of $31.9 million or 46.3%.

• Diluted earnings per share of $1.28 compared to $2.42 per diluted share in 2010, a decrease of 47.1%. The weighted average number of diluted shares outstanding increased to approximately 28.9 million compared to 28.5 million in 2010.

• EBITDA of $84.5 million compared to $134.1 million in 2010, a decrease of 37.0%.

• After adding back $0.8 million and $1.2 million ($0.5 million and $0.07 million, net of income tax) or $0.01 and $0.02 per diluted share in certain items*, the following would have been our adjusted results:

• Net income attributable to Amedisys, Inc. of $37.4 million compared to $69.6 million in 2010, a decrease of 46.2%.

• Diluted earnings per share of $1.29 compared to $2.44 per diluted share in 2010, a decrease 47.1%.

• EBITDA of $85.3 million compared to $135.3 million in 2010, a decrease of 36.9%.

“This was a mixed quarter for the company with home health performance lower than our expectations, but strong hospice results. Regulatory changes mainly in our home health division have had a dampening impact on volume and pricing resulting in our downward adjustment to guidance for the year,” stated William F. Borne, Chief Executive Officer of Amedisys, Inc. “On a positive note, we completed a strategic acquisition in our hospice division. In addition, we are very proud to have been awarded a bonus payment from Medicare in recognition of providing quality care and system cost savings under a pay for performance demonstration, which validates the long-term potential we see in the business.”

* See footnote 2 on page 10 for explanation of these certain items.

1

2011 Guidance

• Net service revenue is anticipated to be in the range of $1.475 billion to $1.5 billion.

• Diluted earnings per share is expected to be in the range of $2.20 to $2.40 based on an estimated 29.3 million shares outstanding.

This guidance includes the effects of our recently announced Beacon acquisition but excludes the effects of the following: any future acquisitions, if any are made; effects of any share repurchases; non-recurring costs that may be incurred during the year or the impact of the final 2012 Medicare rate changes.

We urge caution in considering the current trends and guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (“SEC”) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC’s internet website,http://www.sec.gov, and our internet website,http://www.amedisys.com. We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate in the conference call, please dial (888) 695-0608 (Toll free) or (719) 457-2714 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, August 2, 2011. A replay of the conference call will be available through August 9, 2011. The replay dial in number is (888) 203-1112 (Toll free) or (719) 457-0820 (Toll). The replay pin number is 1479597.

The call will also be available through our website and for seven days thereafter at the following web address:http://www.amedisys.com/investors.

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol “AMED.”

Additional information

Our company website address iswww.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled “Investors��� on our website home page. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, adverse effects of a failure of the Federal government to fund government programs in which we participate, such as Medicare or Medicaid, adverse effects of a possible delay in the Federal budget process or a Federal government shutdown, our ability to open agencies, acquire additional agencies and integrate and operate these agencies effectively, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the home health industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, changes in or developments with respect to any litigation or investigations relating to the Company, including the United States Senate Committee on Finance inquiry, the SEC investigation and the U.S. Department of Justice Civil Investigative Demand and various other matters, many of which are beyond our control.

2

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA plus certain items, adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. plus certain items and adjusted diluted earnings per share, defined as diluted earnings per share plus the earnings per share effect of certain items. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under generally accepted accounting principles (“GAAP”). Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.

3

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION

(Amounts in thousands, except share, per share data and statistical information)

(Unaudited)

Balance Sheet Information

	June 30, 2011			December 31, 2010
ASSETS
Current assets:
Cash and cash equivalents	$	28,132		$	120,295
Patient accounts receivable, net of allowance for doubtful accounts of $18,162 and $20,977		153,273			141,549
Prepaid expenses		10,976			9,947
Other current assets		12,400			22,259
Total current assets		204,781			294,050
Property and equipment, net of accumulated depreciation of $77,832 and $78,074		144,446			138,554
Goodwill		901,611			791,412
Intangible assets, net of accumulated amortization of $19,130 and $17,135		62,331			53,393
Other assets, net		27,478			22,454
Total assets	$	1,340,647		$	1,299,863
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	21,843		$	20,663
Payroll and employee benefits		78,077			82,961
Accrued expenses		70,014			61,254
Current portion of long-term obligations		35,448			37,178
Current portion of deferred income taxes		10,408			14,285
Total current liabilities		215,790			216,341
Long-term obligations, less current portion		127,901			144,688
Deferred income taxes		61,516			52,286
Other long-term obligations		5,460			6,833
Total liabilities		410,667			420,148
Commitments and Contingencies
Equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.001 par value, 60,000,000 shares authorized; 30,575,814 and 29,867,701 shares issued; and 29,890,269 and 29,232,807 shares outstanding		30			29
Additional paid-in capital		422,273			407,156
Treasury stock at cost, 685,545 and 634,894 shares of common stock		(15,702	)		(14,022	)
Accumulated other comprehensive income		15			25
Retained earnings		521,612			484,669
Total Amedisys, Inc. stockholders’ equity		928,228			877,857
Noncontrolling interests		1,752			1,858
Total equity		929,980			879,715
Total liabilities and equity	$	1,340,647		$	1,299,863

4

Income Statement Information

	For the Three-Month Periods Ended June 30,						For the Six-Month Periods Ended June 30,
	2011			2010			2011			2010
Net service revenue	$	373,722		$	422,349		$	738,024		$	835,316
Cost of service, excluding depreciation and amortization		193,147			209,293			384,326			413,352
General and administrative expenses:
Salaries and benefits		80,862			88,586			166,512			175,553
Non-cash compensation		3,205			3,168			5,115			5,681
Other		46,644			52,431			92,209			97,446
Provision for doubtful accounts		2,128			4,463			5,290			8,808
Depreciation and amortization		9,726			8,279			19,081			16,465
Operating expenses		335,712			366,220			672,533			717,305
Operating income		38,010			56,129			65,491			118,011
Other (expense) income:
Interest income		89			92			207			177
Interest expense		(2,254	)		(2,350	)		(4,506	)		(4,761	)
Equity in earnings from unconsolidated joint ventures		466			734			789			1,522
Miscellaneous, net		(425	)		(1,576	)		(764	)		(1,543	)
Total other expense, net		(2,124	)		(3,100	)		(4,274	)		(4,605	)
Income before income taxes		35,886			53,029			61,217			113,406
Income tax expense		(14,175	)		(20,663	)		(24,182	)		(44,210	)
Net income		21,711			32,366			37,035			69,196
Net income attributable to noncontrolling interests		(55	)		(164	)		(91	)		(348	)
Net income attributable to Amedisys, Inc.	$	21,656		$	32,202		$	36,944		$	68,848
Net income per share attributable to Amedisys, Inc. common stockholders:
Basic	$	0.76		$	1.15		$	1.30		$	2.46
Diluted	$	0.75		$	1.13		$	1.28		$	2.42
Weighted average shares outstanding:
Basic		28,625			28,106			28,495			27,963
Diluted		29,010			28,597			28,938			28,478

Cash Flow Information

	For the Three-Month Periods Ended June 30,						For the Six-Month Periods Ended June 30,
	2011			2010			2011			2010
Net cash provided by operating activities	$	23,959		$	54,397		$	76,513		$	125,434
Net cash used in investing activities		(135,589	)		(13,320	)		(151,535	)		(27,686	)
Net cash used in financing activities		(9,106	)		(7,030	)		(17,141	)		(16,206	)
Net (decrease) increase in cash and cash equivalents		(120,736	)		34,047			(92,163	)		81,542
Cash and cash equivalents at beginning of period		148,868			81,980			120,295			34,485
Cash and cash equivalents at end of period	$	28,132		$	116,027		$	28,132		$	116,027

5

Supplemental Information – Home Health

	For the Three-Month Periods Ended June 30,
	2011								2010
	Same Store			Start-ups/ Acquisitions			Total		Same Store			Other (1)			Total
Financial Information (in millions):
Episodic-based revenue	$	302.7		$	5.0		$	307.7	$	356.1		$	13.2		$	369.3
Nonepisodic-based revenue		18.4			0.3			18.7		17.9			0.8			18.7
Net service revenue		321.1			5.3			326.4		374.0			14.0			388.0
Same store episodic-based revenue growth (2)		(15	)%							6	%
Cost of service		164.2			3.4			167.6		179.9			10.8			190.7
Gross margin		156.9			1.9			158.8		194.1			3.2			197.3
Other operating expenses		76.5			3.0			79.5		85.7			13.3			99.0
Operating income	$	80.4		$	(1.1	)	$	79.3	$	108.4		$	(10.1	)	$	98.3
Key Statistical Data:
Admissions:
Episodic-based		57,799			1,181			58,980		60,426			2,650			63,076
Nonepisodic-based		10,400			204			10,604		9,577			511			10,088
Total admissions		68,199			1,385			69,584		70,003			3,161			73,164
Same store episodic-based admission growth (2)		(4	)%							4	%
Recertifications:
Episodic-based		43,751			464			44,215		46,025			1,545			47,570
Nonepisodic-based		4,374			39			4,413		4,623			113			4,736
Total recertifications		48,125			503			48,628		50,648			1,658			52,306
Same store episodic-based recertification growth (2)		(5	)%							(9	)%
Completed episodes		99,593			1,553			101,146		104,951			4,469			109,420
Visits:
Episodic-based		1,904,019			29,063			1,933,082		2,034,885			72,568			2,107,453
Nonepisodic-based		200,058			3,666			203,724		202,300			10,983			213,283
Total visits		2,104,077			32,729			2,136,806		2,237,185			83,551			2,320,736
Cost per visit	$	78.04		$	106.34		$	78.47	$	80.44		$	128.66		$	82.18
Average episodic-based revenue per completed episode (3)	$	3,032		$	3,189		$	3,034	$	3,378		$	3,243		$	3,372
Episodic-based visits per completed episode (4)		18.9			18.3			18.9		19.4			17.7			19.4

6

	For the Six-Month Periods Ended June 30,
	2011								2010
	Same Store			Start-ups/ Acquisitions			Total		Same Store			Other (1)			Total
Financial Information (in millions):
Episodic-based revenue	$	603.0		$	11.9		$	614.9	$	703.9		$	27.1		$	731.0
Nonepisodic-based revenue		36.4			0.6			37.0		35.8			1.7			37.5
Net service revenue		639.4			12.5			651.9		739.7			28.8			768.5
Same store episodic-based revenue growth (2)		(14	)%							10	%
Cost of service		331.1			7.3			338.4		356.2			21.5			377.7
Gross margin		308.3			5.2			313.5		383.5			7.3			390.8
Other operating expenses		156.1			6.5			162.6		168.5			24.2			192.7
Operating income	$	152.2		$	(1.3	)	$	150.9	$	215.0		$	(16.9	)	$	198.1
Key Statistical Data:
Admissions:
Episodic-based		118,957			2,503			121,460		122,871			5,483			128,354
Nonepisodic-based		20,904			393			21,297		19,057			1,023			20,080
Total admissions		139,861			2,896			142,757		141,928			6,506			148,434
Same store episodic-based admission growth (2)		(3	)%							7	%
Recertifications:
Episodic-based		87,035			911			87,946		94,083			3,202			97,285
Nonepisodic-based		8,610			80			8,690		9,408			224			9,632
Total recertifications		95,645			991			96,636		103,491			3,426			106,917
Same store episodic-based recertification growth (2)		(7	)%							(5	)%
Completed episodes		197,534			3,129			200,663		205,864			8,652			214,516
Visits:
Episodic-based		3,809,117			60,651			3,869,768		4,049,413			149,293			4,198,706
Nonepisodic-based		397,367			6,941			404,308		399,726			21,629			421,355
Total visits		4,206,484			67,592			4,274,076		4,449,139			170,922			4,620,061
Cost per visit	$	78.71		$	108.92		$	79.19	$	80.07		$	125.44		$	81.75
Average episodic-based revenue per completed episode (3)	$	3,030		$	3,098		$	3,032	$	3,332		$	3,230		$	3,328
Episodic-based visits per completed episode (4)		18.7			17.7			18.7		19.1			17.5			19.0

(1) Agencies for the prior period which are not considered same store agencies (i.e. agencies closed or consolidated in current or prior period or unopened startups).

(2) Same store episodic-based revenue, admissions or recertifications growth is the percent increase (decrease) in our same store episodic-based revenue, admissions or recertifications for the period as a percent of the same store episodic-based revenue, admissions or recertifications of the prior period.

(3) Average episodic-based revenue per completed episode is the average episodic-based revenue earned for each episodic-based completed episode of care.

(4) Episodic-based visits per completed episode is the home health episodic-based visits on completed episodes divided by the home health episodic-based episodes completed during the period.

7

Supplemental Information – Hospice

	For the Three-Month Periods Ended June 30,
	2011							2010
	Same Store			Start-ups/ Acquisitions		Total		Same Store			Other (1)			Total
Financial Information (in millions):
Medicare revenue	$	37.5		$	6.6	$	44.1	$	30.8		$	1.5		$	32.3
Non-Medicare revenue		2.7			0.5		3.2		1.9			0.1			2.0
Net service revenue		40.2			7.1		47.3		32.7			1.6			34.3
Same store Medicare revenue growth (2)		22	%						22	%
Cost of service		21.0			4.5		25.5		17.2			1.4			18.6
Gross margin		19.2			2.6		21.8		15.5			0.2			15.7
Other operating expenses		7.7			2.1		9.8		7.3			1.2			8.5
Operating income	$	11.5		$	0.5	$	12.0	$	8.2		$	(1.0	)	$	7.2
Key Statistical Data:
Hospice admits		3,140			600		3,740		2,676			198			2,874
Hospice days		301,724			42,629		344,353		246,575			11,597			258,172
Average daily census		3,316			468		3,784		2,710			127			2,837
Revenue per day	$	133.04		$	166.52	$	137.18	$	132.61		$	139.11		$	132.90
Cost of service per day	$	69.37		$	106.43	$	73.96	$	69.45		$	126.69		$	72.02
Average length of stay		88			73		86		88			63			87

	For the Six-Month Periods Ended June 30,
	2011								2010
	Same Store			Start-ups/ Acquisitions			Total		Same Store			Other (1)			Total
Financial Information (in millions):
Medicare revenue	$	73.2		$	7.4		$	80.6	$	60.3		$	2.8		$	63.1
Non-Medicare revenue		5.0			0.5			5.5		3.5			0.2			3.7
Net service revenue		78.2			7.9			86.1		63.8			3.0			66.8
Same store Medicare revenue growth (2)		21	%							27	%
Cost of service		40.6			5.3			45.9		33.0			2.7			35.7
Gross margin		37.6			2.6			40.2		30.8			0.3			31.1
Other operating expenses		15.1			2.9			18.0		14.6			2.3			16.9
Operating income	$	22.5		$	(0.3	)	$	22.2	$	16.2		$	(2.0	)	$	14.2
Key Statistical Data:
Hospice admits		6,228			709			6,937		5,305			362			5,667
Hospice days		579,224			48,874			628,098		473,056			21,635			494,691
Average daily census		3,200			270			3,470		2,614			120			2,733
Revenue per day	$	134.86		$	162.41		$	137.00	$	134.81		$	139.32		$	135.01
Cost of service per day	$	69.91		$	109.88		$	73.02	$	69.66		$	126.23		$	72.13
Average length of stay		89			70			87		89			62			87

(1) Agencies for the prior period which are not considered same store agencies (i.e. agencies closed or consolidated in current or prior period or unopened startups).

(2) Same Store Medicare revenue growth is the percent increase in our same store Medicare revenue for the period as a percent of the same store Medicare revenue of the prior period.

8

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED KEY STATISTICAL DATA

(Unaudited)

	For the Three-Month Periods Ended June 30,				For the Six-Month Periods Ended June 30,
	2011		2010		2011		2010
Key Statistical Data:
General
Number of home health agencies		485		529		485		529
Number of hospice agencies		90		72		90		72
Number of agencies acquired (1)		22		1		22		2
Number of agencies opened as start-up locations (1)		2		12		8		29
Days revenue outstanding, net (2)		36.0		32.5		36.0		32.5

(1) Includes both home health and hospice agencies.

(2) Our calculation of days revenue outstanding, net at June 30, 2011 and 2010 is derived by dividing our ending net patient accounts receivable (i.e. net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three-month period ended June 30, 2011 and 2010, respectively.

9

AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands, except per share data)

(Unaudited)

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA

	For the Three-Month Periods Ended June 30,					For the Six-Month Periods Ended June 30,
	2011			2010		2011		2010
Net income attributable to Amedisys, Inc.	$	21,656		$	32,202	$	36,944	$	68,848
Add:
Provision for income taxes		14,175			20,663		24,182		44,210
Interest expense, net		2,165			2,258		4,299		4,584
Depreciation and amortization		9,726			8,279		19,081		16,465
EBITDA (1)	$	47,722		$	63,402	$	84,506	$	134,107
Add:
Certain items (2)		(3,606	)		1,201		811		1,201
Adjusted EBITDA (3)	$	44,116		$	64,603	$	85,317	$	135,308

Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation

	For the Three-Month Periods Ended June 30,					For the Six-Month Periods Ended June 30,
	2011			2010		2011		2010
Net income attributable to Amedisys, Inc.	$	21,656		$	32,202	$	36,944	$	68,848
Add:
Certain items (2)		(2,182	)		732		491		732
Adjusted net income attributable to Amedisys, Inc. (4)	$	19,474		$	32,934	$	37,435	$	69,580

Adjusted Diluted Earnings Per Share Reconciliation

	For the Three-Month Periods Ended June 30,					For the Six-Month Periods Ended June 30,
	2011			2010		2011		2010
Net income attributable to Amedisys, Inc. common stockholders - diluted	$	0.75		$	1.13	$	1.28	$	2.42
Add:
Certain items (2)		(0.08	)		0.02		0.01		0.02
Adjusted net income attributable to Amedisys, Inc. common stockholders - diluted (5)	$	0.67		$	1.15	$	1.29	$	2.44

(1) EBITDA is defined as net income attributable to Amedisys, Inc. 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. This calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

(2) During the three and six month period ended June 30, 2011, we incurred certain costs associated with acquisitions and related integration costs and legal expenses related to the United States Senate Committee on Finance inquiry and SEC and DOJ investigation discussed in Note 6 to the condensed consolidated financial statements and incurred costs associated with agency closings we announced in 2010. These costs were offset by the reversal of accrued bonuses. In addition, during the three-month period ended June 30, 2011 we recorded a receivable for a CMS bonus payment as the result of the pay for performance demonstration. The following details these items (amounts in millions, except per share data):

	For the Three-Month Periods Ended June 30, 2011									For the Six-Month Periods Ended June 30, 2011
	(Income) Expense			Net of Tax			Diluted EPS			(Income) Expense			Net of Tax			Diluted EPS
Bonus reversal	$	(1,500	)	$	(908	)	$	(0.03	)	$	(1,500	)	$	(908	)	$	(0.03	)
CMS bonus		(4,733	)		(2,864	)		(0.10	)		(4,733	)		(2,864	)		(0.10	)
Exit activities		—			—			—			1,073			649			0.02
Certain costs		2,627			1,590			0.05			5,971			3,614			0.12
Total	$	(3,606	)	$	(2,182	)	$	(0.08	)	$	811		$	491		$	0.01

10

During the three and six-month period ended June 30, 2010, we incurred certain costs associated with our realignment of our operations as well as legal expenses related to the United States Senate Committee on Finance inquiry and SEC and DOJ investigation discussed in Note 6 to the condensed consolidated financial statements. These costs were offset by the reversal of accrued bonuses. In addition, during the six-month period ended June 30, 2010 we received a CMS bonus payment as the result of the pay for performance demonstration. The following details these items (amounts in millions, except per share data):

	For the Three and Six-Month Periods Ended June 30,  2010
	(Income) Expense			Net of Tax			Diluted EPS
Bonus reversal	$	(3,096	)	$	(1,889	)	$	(0.07	)
CMS bonus		(3,587	)		(2,188	)		(0.08	)
Exit activities		1,436			876			0.03
Certain costs		6,448			3,933			0.14
Total	$	1,201		$	732		$	0.02

(3) Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization plus certain items as described in footnote 2. Adjusted 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. This calculation of adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

(4) Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. plus certain items as described in footnote 2. Adjusted net income attributable to Amedisys, Inc. 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. This calculation of adjusted net income attributable to Amedisys, Inc. may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP measure in the same manner.

(5) Adjusted diluted earnings per share is defined as diluted earnings per share plus the earnings per share effect of certain items as described in footnote 2. Adjusted diluted earnings per share 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 or operating performance. This calculation of adjusted diluted earnings per share may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

11