Elevance Health Credits Home Health Acquisitions As Revenue Catalysts

Elevance Health Inc. (NYSE: ELV) ended the first quarter of 2025 with better-than-expected financials. The company identified home health as one of its key revenue drivers.

In Q1, Elevance hauled in $48.8 billion in operating revenue, a 15% year-over-year increase. Carelon, Elevance’s health care services arm, earned $16.7 billion in Q1, a 38% year-over-year increase.

“Our revenue result reflects contributions from recent acquisitions, particularly in pharmacy services and home health, two areas critical to advancing our whole health strategy,” Mark Kaye, Elevance’s chief financial officer, said on the company’s Q1 earnings call. “These investments strengthen our ability to deliver more connected care, and we are actively integrating these assets across our health benefits and Careline platforms to improve outcomes for members and accelerate our enterprise flywheel.”

Elevance strengthened its home-based care play in late 2024 with its acquisition of the home-based care company CareBridge. The company also bolstered its in-home services with its January 2024 acquisition of Paragon Healthcare, an infusion services company. 

Offering home- and community-based services allows high-touch support for Medicaid and dual-enrollment beneficiaries with complex needs, helping to avoid emergency department (ED) visits and institutional stays, Gail Boudreaux, Elevance president and CEO, said.

“Our long-term care model continues to deliver better outcomes at lower cost by integrating home-based services, behavioral health and care coordination,” Boudreaux said.

The company has focused on improving Medicaid rates and reports that it has made progress ahead of April adjustments. 

Elevance has previously struggled with Medicaid member attrition, and the company is still coping with this problem. Kaye reported that member effectuation rates, meaning the proportion of members who have paid their premiums, are lighter than initial expectations due to an increase in passive renewals.

“Given the 90-day grace period has now ended, we do project membership attrition in the mid single-digit percent range in early Q2, after which we anticipate our membership or ACA membership base will stabilize for 2025,” Kaye said.

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