Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of home health care services provider Amedisys (NASDAQ:AMED) are crawling back into bed today, falling as much as 11%, after announcing a new health services contract with Humana (NYSE:HUM).

So what: A new contract and the stock is down...€“ "What gives?" right? Well, the reason Amedisys is tanking has to do with the fact that the new home health services contract will be paid out on a per-visit basis as opposed to a previously agreed upon episodic basis. Because of this, Amedisys expects to generate only half of its normal $65 million-$70 million in revenue that it usually generates annually from its relationship with Humana. Management noted the reduction in revenue will begin in the fourth quarter.

Now what: The fact that Amedisys is having to rework some of its health services contracts really isn't a surprise. What we need to remember is that today's revenue reduction from the Humana deal lops about 2% off of future revenue, yet the stock is shedding in the low double digits. That seems to be a bit of an overreaction. I also feel it's worth pointing out that while the Affordable Care Act will constrain health care service providers' ability to boost pricing, it should bring a new class of insurable patients into health care insurers' networks. Ultimately, I feel the ACA could cause Amedisys' revenue to head higher consistently, and I consider the company a tempting value play here.

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