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Coordinated Personal Home Care
A pre-acute solution to the post-acute problemSM
Sidoti Emerging Growth Investor Forum
Serving Families at Home Since 1979
Forward-Looking Statements
information contains, or may be deemed to contain, forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
future. The future results of Addus may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree, and historical results may not be an indication of future performance. For a
discussion of some of the important factors that could cause Addus results to differ from those expressed in, or implied by, the following forward-looking statements, please refer to Addus most recent Annual Report on Form 10-K, and its
Quarterly Reports on Form 10-Q, each of which is available at www.SEC.gov, particularly the Sections entitled Risk Factors . Addus undertakes no obligation to update or revise any forward-looking statements, except as may be required by
It is the primary mission of Addus
HealthCare to improve the health and well being of our consumers through the provision of quality, cost-effective home and community based services.
We will accomplish our goals by fostering an environment in which our employees enthusiastically support and advance our mission.
Reward for accomplishing our mission includes pride in our organization, contribution to the community and a reasonable
Serving Families at Home Since 1979
Investment Highlights
Broad Range of Services and Payors
Differentiated, Coordinated Care Model
Positioned to Excel under Healthcare Reform
Significant Operational Scale Across National Footprint
History of Growth through Acquisition
Multiple Organic Growth Opportunities
Comprehensive provider of home and community based services, which are primarily social in nature, focused primarily on
the Dual Eligible population:
28,000+ consumers (many dual
2013 Revenues of $265.9 million
Diversified payor base (200+ payors)
= National Support Center
115 Locations Across 23
Focusing on the Dual Eligible
Percent of Total Health Care Spending
Concentration of Health Care Spending in the U.S. Population, 2007
Serving Families at Home Since 1979
Top 1% Top 5% Top 10% Top 15% Top 20% Top 50% Bottom 50%
( $44,482) ( $15,806) ( $8,716) ( $5,798) ( $4,064) ( $786) (<$786)
Percentof Population, Ranked by Health Care Spending
Addus focuses on the top 5% who utilize 50% of resources and expenditures!
Source: Kaiser Family Foundation calculations using data from U.S. Department of Health and Human Services, Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey
Video of Addus Services
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Addus Dual AdvantageTM
Long-term care risk makes it essential that health plan dual eligible members live safely and healthfully at
home as long as possible
Where are we in the Continuum of Care?
Specialty Diagnostics $$$
Long-Term Care Expenditures
Long Term Care Expenditures
$80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0
1990 1995 2000 2002 2004 2006 2008 2009
Insitutional Care Expenditures(Billions)
& Community Based Services Expenditures (Billions).
SOURCE: KCMU and Urban Institute analysis of
HCFA/CMS-64 data. June 2011
Medicaid Spending Per Beneficiary
Source: Kassner, Reinhard, Fox-Grage,
Coleman and Milne. AARP Public Policy Institute: A
Balancing Act: State Long-Term Care Reform, July 2008
THE LANDSCAPE IS SHIFTING
States are shifting responsibility for care to health plans and managed care Focus on managing and coordinating care for the costly dual eligible population
What is a Dual Eligible?
benefit programs and funding of acute and long-term care.
Medicare Benefit Payments By Type of Service, 2012
Medicare Advantage 23%
Outpatient Prescription Drugs 10%
5% Skilled Nursing Facility
Physician Payments 13%
6% Hospital Outpatient Services
Total Benefit Payments =$536 Billion
Medical Expenditures for Dual Eligible Beneficiaries, FY 2009
Medicare Premiums and Cost-Sharing $12.0 Billion 8.9%
Home and Community Based Care $33.4 Billion 24.8%
Medicare Covered Services $23.5 Billion 17.5%
Institutional Care $57.1 Billion 42.4%
Acute $7.1 Billion 5.3%
Prescribed Drugs $1.5 Billion 1%
Total Spending = $134.7 Billion
Dually eligible beneficiaries compromise 20% of the Medicare
Population and 15% of the Medical population, 2008
Dual Eligibles 9 million
Total Medicare beneficiaries, 2008:
Total Medicaid beneficiaries,
SOURCE: Kaiser Family Foundation analysis of the Medicare Current Beneficiary Survey 2008 and Kaiser Commission on Medicaid and the Uninsured and Urban Institute estimates data from FY
2008 MSIS and CMS Form-64.
Sources: Kaiser Commission on Medicaid and the Uninsured, April 2011
Combined Medicare and Medicaid spending is estimated at $300 B for the dual population.
States Pursuing a Dual Program
States are shifting responsibility for care to health plans and managed care Focus on managing and
coordinating care for the costly dual eligible population
MCO Plans/Programs already implemented
2013 Implementation Plans
2014 Implementation Plans
No Implementation Plans
Source: Kaiser Commission on Medicaid and the Uninsured, May 2012
Health Plan s Worst Nightmare
Total Episodic Cost & one-year
of Nursing Home $75,620
Ambulance $1,000/ride
Acute Care Hospital $12,320/stay
Sources: Consumer Health Ratings.com