Key Points – Addus HomeCare said the new federal moratorium on certain home health licenses should have little impact on its business because its recent acquisitions have been focused on personal care services (PCS), which are not affected. – The company reported improving PCS…
ends, with census growth picking up in recent months, and said its caregiver app is boosting fill rates in major states like Illinois and Texas. – Management remains active on M&A, pointing to acquisition opportunities in PCS and Indiana expansion, while also noting that current deal valuations have come down and the company has the balance sheet to move quickly. – 3 Healthcare Stocks Providing Relief for the Sandwich Generation Addus HomeCare (NASDAQ:ADUS) executives said a new federal moratorium on certain home health licenses should have little effect on the company’s growth plans, while highlighting continued improvement in personal care services trends and ongoing acquisition opportunities. Speaking at an RBC healthcare services event, Chairman and Chief Executive Officer Dirk Allison said the moratorium does not apply to personal care services, or PCS, which has accounted for the company’s recent acquisition activity. “If you look over our last probably 15 months, everything we’ve acquired has been PCS,” Allison said. “From that aspect, it has no impact on our ability to grow revenue.” Moratorium and Regulation Allison said the moratorium is more focused on de novo growth in clinical home health services, an area where Addus does not typically participate
He said the company’s clinical acquisitions would still be guided by the existing 36-month rule, and that the moratorium should not affect acquisitions where the seller qualifies under that standard. On valuations in home health, Allison said there are competing views. Some sellers may argue that the moratorium creates scarcity among clinical providers that qualify for acquisition, while the pool of buyers is also limited.
He added…