Full Press Release Details
Coordinated Personal Home Care
A pre?acute solution to the post-acute problemSM
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
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 Experienced Management Team
Comprehensive provider of home and community based services, which are primarily social in nature, focused primarily on
the Dual Eligible population:
26,000+ consumers (many dual
2012 Revenues of $244.3 million
Diversified payor base (200+ payors)
Largest payor 64% of 2012 total revenues
Locations Across 20 States
Focusing on the Dual Eligible
Concentration of Health Care
Spending in the U.S. Population, 2007
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 (MEPS), 2007
Addus Dual AdvantageTM
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
Transportation Rehab Facility Home Health $ $ $ $ $ Personal Companion $ Emergency Home Hospital
Family and Response Case Physicians Ambulance/ER Intensive Care Nursing Home Community (PERS) Management $ $ $ $ $ $ $ $ $
Friendly Psychiatric Healthy Inpatient $ $ $ $ $ Living Eat Visiting ?? Tele Health $ Hospice
Specialty Sub-Acute Telephone Diagnostics $ $ $ Facilities $ $ $ $ $ Reassurance Hospital $ $ $ $
Meals at Personal Care $ Behavioral Home Health $ $ Adult Day
Long-Term Care Expenditures
Growth in Medicaid Long Term Care Expenditures
Medicaid Spending Per Beneficiary
Insitutional Care Expenditures(Billions)
Home & Community Based Services Expenditures (Billions)
SOURCE: KCMU and Urban Institute analysis of HCFA/CMS64 data. June 2011
Source: Kassner, Reinhard, Fox
Grage, Houser, Accius, Coleman and Milne. AARP Public Policy Institute: A Balancing Act: State Long?Term Care Reform, July 2008
$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
$30,000 $25,000 $24,500 $20,000
Nursing Home Home Care
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 the Opportunity?
Populations 65+ years
Hospital Services (Part A)
Post Acute Care SNF / Rehab
Professional Services (Part B)
Post acute Home Care Services
Prescription Services (Part D)
Duals Represent 36% of Total Medicare Spending
Generally populations 65+ years w Income limits Home Based Personal Care Long term Nursing Home Care
Duals Represent 39% of Total Medicaid Spending 69% of Medicaid Spending is for Long Term Care
Pilot Program Features / Objectives
Total $300 Billion in annual spending for dual eligible enrollees in 2007
Funding for both programs administered through the States
26 States have indicated they will participate over the next 3
Each State will decide on the size, nature and timing of the
Approximately 9 million are Duals
Bids are being solicited from multiple Managed Care Companies
Eliminate service duplication / streamline administration
Keep member functioning in the home environment
Avoid / lower the cost for Acute Care services
Sources: Kaiser Commission on Medicaid and the Uninsured, April 2011
States Pursuing a Dual Program
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
The Choice is Obvious!
Emergency Room $1,700/visit
Total Episodic Cost & one?year of Nursing
Ambulance Home $1,000/ride $75,620 Acute Care Hospital $12,320/stay
Nursing Home $42,000/year Rehab Facility $18,600/stay
Home Personal Care $9,200/year
Sources: Consumer Health Ratings.com CMS.gov
Addus Dual AdvantageTM
Aid A Powerful Resource
No one knows more about the member
No one is in a better position to positively
effect health outcomes
Than the Addus Home Care Aide
Integrated Clinical Strategy Begins In
Addus Addus Home Call Care Aide Center
Community?Based Resources Interdisciplinary
& Advocacy Care Team Groups
Client Health Plan Primary Care Case Health Manager Providers