Aveanna Healthcare Holdings (NASDAQ: AVAH) is specializing in density and similarities with its most well-liked payers because it explores potential acquisitions in 2026 – and is not shying away from house well being care offers now that the 2026 Medicare cost rule for house well being care presents a level of certainty.

CEO Jeff Shaner is searching for low-cost offers to “densify” the corporate’s geographic footprint, specializing in areas the place Aveanna’s managed care companions have requested extra enterprise.

“There are [private duty services] (PDS) is stating that we’re not in a scenario that the nationwide most well-liked payers need us to be in,” Shaner stated Wednesday on the JP Morgan Healthcare Convention. “We wish to fill in these states over time. There isn’t any good acquisition that can do all of that, however we wish to proceed to interrupt down these states and add them to our Medicaid repertoire.

Ohio, West Virginia, Tennessee and Kentucky are 4 states that examine these bins, Shaner stated.

The corporate’s most notable deal of 2025, the acquisition of Thrive Expert Pediatric Care, serves as a blueprint for the forms of offers Aveanna will pursue sooner or later, Shaner beforehand instructed Residence Well being Care Information.

Atlanta-based Aveanna operates in 38 states and presents personal, house well being and hospice providers, amongst different providers. The corporate at present has Medicaid operations in 29 states and desires to develop that quantity to 35 or 36 over the subsequent two to 3 years, Shaner stated Wednesday.

The corporate’s density mentality just isn’t restricted to its Medicaid enterprise. Shaner stated the corporate is specializing in house well being care now that uncertainty over the 2026 Medicare cost rule for house well being care has been resolved.

The ultimate rule, which included a a lot softer charge lower than the rule proposed in June, provides the house well being care trade a way of certainty, Shaner stated.

“For the primary time, we noticed mild on the finish of the tunnel: everlasting adaptation would convey a extra rational thought course of, permitting us to essentially make investments and plan, each as an organization and as an trade.

Aveanna at present operates house well being and hospice companies in 14 states and is trying to densify these operations within the Midwest and Southeast, Shaner stated.

A density-first mentality has turn out to be more and more frequent throughout the house care trade, with a shift in focus to broad geographic enlargement.

Whereas Aveanna is targeted on ramping up mergers and acquisitions, it’s “choosy” about its investments, in line with Chief Monetary Officer Matt Buckhalter.

“Be selective, picky and considerate relating to capital allocation,” he stated. “We have executed an awesome job right here of deleveraging and producing fairly significant free money circulation, and as we proceed to try this, we’re in a position to get M&A by means of free money circulation technology whereas protecting in thoughts, ‘Hey, we wish to be beneath 4 occasions leverage, and have good visibility to try this.’ Be sure to keep that purpose always.”

Trying to 2026, Aveanna expects that general income progress in house care, PDS and hospice will come from elevated quantity, somewhat than charge will increase.

“And we’re unhappy about that, but it surely’s an awesome story for us that we really feel very comfy with,” Shaner stated.

Additionally on Wednesday, Aveanna shared its up to date full-year steerage for fiscal 2025, anticipating income of $2.425 billion to $2.445 billion, up from the anticipated $2.375 billion.

The corporate additionally introduced its preliminary full-year steerage for 2026, anticipating income of $2.54 to $2.56 billion.