Full Press Release Details
Coordinated Personal Home Care
A pre-acute solution to the post-acute problemSM
Jefferies 2014 Global Healthcare Conference
Serving Families at Home Since 1979
Forward-Looking Statements
The following 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 law.
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.
accomplishing our mission includes pride in our organization, contribution to the community and a reasonable profit.
Comprehensive provider of home and community based services, which are primarily social in nature, focused primarily on the Dual Eligible population: Personal Care Adult Day Service
29,000+ consumers (many dual eligible)
136 Locations Across 23 States
Diversified payor base (200+ payors)
Focusing on the Dual Eligible Population!
Concentration of Health Care Spending in the U.S. Population, 2007
Percent of Total Health Care Spending
Top 1% Top 5% Top 10% Top 15% Top 20% Top
( $44,482) ( $15,806) ( $8,716) ( $5,798) ( $4,064) ( $786) (<$786)
Percent of Population, Ranked by Health Care Spending
Addus serves the top 5% who utilize 50% of healthcare resources and expenditures! The alternative is nursing homes at 4X
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
Payors - $50 Billion Market & Growing
State Agencies . . . County Agencies . . . Area Agencies on Aging
$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
Reasonably Effective . . . Inefficient
to Dual Eligible Programs
State Programs are moving to Managed Care Integration of Medicaid and Medicare
Dually eligible beneficiaries comprise 20% of the Medicare population and 15% of the Medicaid
Dual Eligibles 9 million
Total Medicare beneficiaries, 2008: 46 million
Total Medicaid beneficiaries, 2008: 60 million
Source: Kaiser family foundation analysis of the medicare current beneficiary survey 2008, and Kaiser commission on Medicaid and the uninsured and urban institute estimates based on data
from FY2008 MSIS and CMS form-64
$300 Billion in Combined Spending & Growing!
Amerigroup RealSolution in healthcare
Cigna HealthSpringSM
MOLINA Medicaid Solutions
BlueCross BlueShield of Illinois
Challenge Shifting from an Acute to a Pre-Acute Model
Transportation Rehab Facility Home
Personal Companion $
Emergency Home Hospital
Family and Response Case
Physicians Intensive Care Nursing Home Community Management $ Ambulance/ER $$$$ $$$$$
Friendly Psychiatric Healthy Inpatient $$$$$ Living - Eat Visiting Tele Health $ Hospice
Specialty Sub-Acute Telephone Diagnostics $$$ Facilities $$$$$ Reassurance
Hospital $$$$ Adult Day Meals at Personal Care $ Behavioral Home Health $$
Sources: Kaiser Commission on
Medicaid and 9 the Uninsured, April 2011
Shifting to Managed Care
Focus is on managing and coordinating care for the costly dual eligible population!
MCO Plans/Programs already implemented
2013 Implementation Plans
2014 Implementation Plans
Addus location(s) Plans
Source: Kaiser Commission on Medicaid and the
AdvantageTM - The New Paradigm
Long-term care risk makes it essential that health plan dual eligible members
live safely and healthfully at home as long as possible
Expectations for Providers are Changing
Few large providers 20,000 + small individual providers
Limited geographic distribution
No outcomes requirements / reporting
Payments based on hours worked Overutilization Care not modulated
Prefer larger organized providers
Sophisticated Technology &
Electronic Visit Record Outcomes Driven
Capitation Risk Sharing Gain Sharing
The Addus Homecare 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
to Connect the Member to the Health Care Team
Real time reporting to the MCO
Changes in Condition Real time reports through the device, triggering an alert to appropriate personnel.
Additional Information
Pictures and short videos.
Customized to primary diagnosis.
Early Identification equals Early Intervention
the Care System - Objectives
- Shift transactional activities from Agency to Central
- Use technology to Connect the Aide / Member to the Health System / Plan
- Free Agency staff to focus on the member . . . Visit the consumer on an acuity basis
To view a video about Addus service visit:
Programs Improve Outcomes
Nursing home admissions fell, in spite of rising populations; substantial savings
HCBS Strategies Study
Illinois Residents Age 75+
Total Population vs.