Addus HomeCare (ADUS) Jefferies 2025 Healthcare Services Conference summary

Business overview and growth strategy

• Operates in 22 states, focusing on personal care (75% of business), hospice (20%), and home health (5%).

• Pursues a full continuum of home-based care, building early relationships with clients to support transitions to higher-acuity services.

• Targets 10% annual growth, with half from acquisitions; recent Gentiva deal expanded presence, especially in Texas and Arkansas.

• Texas is a key growth market post-acquisition, with significant expansion potential despite current 5% market share.

• Organic growth is driven by rate increases and volume, with personal care aiming for 3%-5% top-line growth and clinical segments showing strong performance.

Financial and operational performance

• Rate increases in major states like Texas and Illinois have supported above-average growth in recent years.

• Volume growth in personal care is targeted at 2%-2.5% annually, with the remainder of growth from rate increases.

• Hospice segment is growing near 10%, with long-term expectations in the mid-to-upper single digits.

• Home health faces rate pressures but still offers volume growth opportunities.

State relationships and Medicaid dynamics

• Maintains strong relationships with supportive states, emphasizing the cost-effectiveness of home care versus nursing homes.

• Illinois stands out for both Medicaid and state-funded programs, helping prevent rapid asset spend-down and nursing home admissions.

• Acquisition strategy considers state fiscal health, Medicaid management, and demographic trends.

• Managed Medicaid relationships and scale enable participation in value-based care and direct rate negotiations.