Home Health Acquisitions Fuel Carelon’s 33% Jump In Operating Revenue

Elevance Health (NYSE: ELV) is continuing to expand its home-based service line – and seeing the benefits of doing so. 

Carelon, Elevance’s health care services arm, saw its Q3 operating revenue increase by $4.5 billion year-over-year, according to the company’s third quarter results. One driver of this growth is its acquisitions in home health services, as well as pharmacy services acquisitions, CarelonRx growth and the scaling of Carelon Services’ risk-based solutions. 

The company is seeking to expand its value-based arrangements as it scales its home-based services offerings, according to Gail K. Boudreaux, Elevance’s president and CEO.

“Carelon is expanding external relationships and scaling pharmacy, behavioral health, specialty care, management and home-based services, embedding value-based care principles throughout,” Boudreaux said during the company’s Q3 earnings call on Tuesday. 

The company’s executives have previously called home health “critical” to advancing the company’s whole health strategy. Elevance’s previous home-based care acquisitions include its 2024 acquisition of CareBridge, a home-based care provider, and its 2024 acquisition of Paragon Healthcare, an infusion services company.

Carelon’s Q3 operating revenue rang in at $18.3 billion, representing a 33% increase year-over-year. Overall, Elevance raked in $50.1 billion in Q3 operating revenue, an increase of 12% year-over-year. 

The increase in Elevance’s Q3 operating revenue was credited in part to growth in the company’s Medicare Advantage (MA) membership. MA growth was partially offset by ongoing Medicaid re-verifications, according to Mark Kaye, the company’s chief financial officer. 

Elevance ended Q3 with 45.4 million medical members, Kaye said. Medicaid disenrollment is concentrated among lower acuity members, he continued, and driven by increasingly stringent eligibility reviews and changes to state re-verification processes.

“Our strategy in 2026 reflects a very disciplined focus on our sustainable performance over time,” Boudreaux said about the company’s Medicare Advantage program. “So we approached select plans and service areas where we didn’t believe we had the opportunity to see long-term sustainable performance as we looked out towards the future of our Medicare Advantage Program. … We are working closely with those individuals that we are not retaining to make sure that they are able to find the right plan that works for them.”

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