Full Press Release Details
Serving Families at Home Since 1979
The Pre-Acute Solution to the Post-Acute Problem.
JP Morgan Conference
Mark Heaney President
and CEO Inna Berkovich Chief Information Officer
Darby Anderson Chief Business Development and Strategy
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
HomeCare 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
Comprehensive provider of home and community based services, which are predominantly social in nature, focused primarily
on the Dual Eligible population:
(mostly dual eligible)
Operate 132 Locations in 22
TTM* adjusted EBITDA:
Diversified payor base
The 5% who consume 50%
of the Healthcare dollars
10,000 people a day turn 65 years old
Those baby boomers that live to 75 can expect to live at least 10 more years
In just 14 years, life expectancy has increased 2.4 years, meaning . more elderly are living longer and, as they
do, they become increasingly poor
Source: Pew Research Center, December 2010
We serve high volume consumers of
healthcare in their homes at the lowest
price point for hands-on care
We serve over 32,000 consumers typically elderly, chronically ill or disabled, at risk of hospitalization or
institutionalization
Our Homecare Aides assist with essential activities of daily living without this
help, consumers will go to a nursing home
Average duration of services is approximately 17 months per consumer
We see our consumers on average 45 hours per month
Addus average revenue per billable hour is $17.05
Substantial opportunity to integrate technology to leverage our low-cost care
Addus Dual AdvantageTM
No one knows more about the
No one is in a better position to
positively affect health
Eat an Apple Case Management Ambulance/ER Psychiatric Inpatient Tele Health Specialty Nursing Home Diagnostics
Telephone Personal Care Sub-Acute Reassurance Home Health Facilities
Behavioral Health Hospital Transportation
Hospice Hospital Intensive Care
Personal Emergency Response (PERS)
The Leader in Large, Highly Fragmented Industry
Only public pure-play home care provider
Approximately 20,000 home care agencies
care market in excess of $60 billion
Home care proven effective in enabling consumers to remain safely and
healthfully at home for as long as possible
Public policy shift to consolidate Medicare and Medicaid programs
for 9 million dual-eligibles driving expansion of MCOs
Historic Payors $60 Billion Market & Growing
State Agencies County Agencies Area Agencies on Aging
Billions 1990 1995 2000 2002 2004 2007 2009
Growth in the Home Care spending has offset Nursing Home spending
despite the growing aging population.
*Medicaid home & community based services
SOURCE: Truven Health Analytics of HCFA/CMS-64 data. June 2013 10
Strategies for Growth
Aging population Favor
Longer lifespan sophisticated,
Sales programs to increase providers
same store census Require technology
novo expansion int More
new markets comprehensive
Business development offerings
with traditional payors Expect health
Adult Day expansion outcomes
Product diversification Risk based contracts
o Platform for small
20,000 Mostly small agencies
Industry consolidation
Expectations for Providers are Changing
20,000 + small individual
Limited geographic distribution
No outcomes requirements /
Payments based on hours
Favor larger providers with
Electronic visit verification
Case Management Extension Model
eligible population at
Highly transactionvbal
Requires disciplined processes
Addus Dual Advantage The New Paradigm
The Addus Advantage coordinated care model
By Enabling members to live safely and healthfully at home as long as possible we add value for any provider/payer at financial risk
The Addus Care System
activities from Agency to centralized areas of excellence
Technology connects the Aide/Member to the Health System/Plan
Free agency staff to focus on the member (visit the consumer on an acuity basis)
Activities of Daily Living Needs
Home Safety Assessment
Because we re always there
Condition Monitoring
and Early Intervention