Aveanna Healthcare Holdings (Nasdaq: AVAH) hit its preferred payer goals ahead of schedule and plans to push deeper into its fastest-growing segment — home health and hospice — through additional acquisitions.

Improved federal government affairs and preferred payer results largely drove the company to update its previous 5% to 7% home health and hospice organic growth rate to 8% to 10%, Aveanna CEO Jeff Shaner said in the company’s Q2 earnings call on Thursday.

“With the durability of our organic growth rates and thoughtful M&A activity, we believe Aveanna is well positioned to achieve double-digit revenue growth on an annual basis,” Shaner said.

Shaner previously said that Aveanna would grow its home health and hospice arms through “creative” M&A. The company’s M&A pipeline most recently included the $175.5 million acquisition of Family First Homecare.

Aveanna closed the Family First acquisition in early June. Its early-stage integrations have progressed “nicely” and full integration will likely conclude by late Q4, Shaner noted.

“I believe the Family First team has already made a positive impact on Aveanna and is a welcome addition to our family,” Shaner said.

Headquartered in Tampa, Florida, Family First Homecare provides pediatric home care across seven states and 27 locations.

As for preferred payers, Aveanna reached its intended goal of 50 payers in 2026. The company exited 2025 with 45 preferred payer agreements in home health and expects to add five this year. In addition, the company sought to maintain an episodic mix above 75% while maintaining a more normalized growth rate. Aveanna reported an 81% home health episodic mix in Q2, with total home health episodes increasing 18.5% compared to the prior year.

“Our dedicated focus on aligning our home health caregiver capacity with those payers willing to reimburse us on an episodic basis has led to double-digit year-over-year growth in home health admissions and episodes, as well as improvement in our clinical and financial outcomes,” Shaner said.

Atlanta-based Aveanna Healthcare Holdings provides home health, hospice, pediatric and adult healthcare services across 39 states.

Shaner said Aveanna’s home health and hospice will be the fastest growing business within the company. “Our geriatric business, although it’s smaller in nature today, will be our fastest-growing business,” Shaner said. “Think of us leaning deeper into the home health side of the M&A picture.”

Aveanna saw $69 million in Q2 revenue from its home health and hospice segment, marking a 14.8% increase over the prior year, Matt Buckhalter, Aveanna chief financial officer, said in the earnings call. About 10,500 total admissions, 81% of which were episodic, and 14,700 episodes of care — up 18.5% compared to the year prior — drove that revenue.

Across the full company, Aveanna’s revenue reached $670.5 million, rising 13.7% compared to the year prior. Adjusted EBITDA came in at $95.4 million, or 8% more than the year before.

“This growth reflects an improved rate environment, increased volumes, as well as enhanced operational efficiency,” Buckhalter said.