Addus HomeCare Comments on New Department of Health and Human Services Proposed Rule
01 May 2023 - 10:00PM
Business Wire
Addus HomeCare Corporation (Nasdaq: ADUS), a provider of home
care services, commented on the proposed new rule announced last
week by the Biden Administration’s Department of Health and Human
Services (HHS) known as “Assuring Access to Medicaid Services.” The
proposed rule is in addition to those adopted under the Obama
Administration in 2016 and incorporates new requirements covering
additional Medicaid Services, including Home and Community-Based
Services (HCBS). The proposed rule is not final and is subject to a
sixty-day public comment period.
The proposed rule has a stated goal of improving access to
services for Medicaid beneficiaries. However, one part of the rule
proposes that state Medicaid agencies be required to provide
assurances that a minimum of 80% of Medicaid payments for personal
care and similar services be spent on compensation to direct care
workers. We believe the specific approach and the proposed minimum
threshold would be contradictory to the goal of assuring access to
Medicaid services, which we fully support, due to the wide variance
in state waiver programs which directly impacts the administrative
burden in individual states. We also believe it may adversely
affect many smaller providers. Those operating in states with
larger rural populations may be unable to continue providing care
due to the significant administrative burden required to provide
quality, regulatory compliant HCBS services.
Dirk Allison, Chairman and Chief Executive Officer of Addus
HomeCare, stated, “As a provider of home care services, we share
the goals of expanding access to more services like ours for
Medicaid beneficiaries while providing for a stable ongoing
workforce, and we are encouraged that HHS recognizes the complexity
of implementing any such provision by proposing a four-year
timeframe before implementation is required. We note the express
willingness of HHS, stated in the proposed rule, to entertain
comments regarding both the appropriate minimum percentage and the
related components in calculating such percentage.
For over a decade, Addus and other HCBS providers have advocated
for higher rates of reimbursement to increase wages and benefits
for the direct caregivers who provide these essential services. We
welcome the opportunity to share our thoughts on these challenges
and the appropriate means to improve access to quality care for our
vulnerable population of Medicaid beneficiaries from a stable
workforce of caregivers.”
Forward-Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements may be identified by words such as “preliminary,”
“continue,” “expect,” and similar expressions. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Forward-looking statements involve a number of risks
and uncertainties that may cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, including discretionary determinations by government
officials, the consummation and integration of acquisitions,
transition to managed care providers, our ability to successfully
execute our growth strategy, unexpected increases in SG&A and
other expenses, expected benefits and unexpected costs of
acquisitions and dispositions, management plans related to
dispositions, the possibility that expected benefits may not
materialize as expected, the failure of the business to perform as
expected, changes in reimbursement, changes in government
regulations, changes in Addus HomeCare’s relationships with
referral sources, increased competition for Addus HomeCare’s
services, changes in the interpretation of government regulations,
the uncertainty regarding the outcome of discussions with managed
care organizations, changes in tax rates, the impact of adverse
weather, higher than anticipated costs, lower than anticipated cost
savings, estimation inaccuracies in future revenues, margins,
earnings and growth, whether any anticipated receipt of payments
will materialize, any security breaches, cyber-attacks, loss of
data or cybersecurity threats or incidents, and other risks set
forth in the Risk Factors section in Addus HomeCare’s Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
February 28, 2023, which is available at www.sec.gov. The financial
information described herein and the periods to which they relate
are preliminary estimates that are subject to change and
finalization. There is no assurance that the final amounts and
adjustments will not differ materially from the amounts described
above, or that additional adjustments will not be identified, the
impact of which may be material. Addus HomeCare undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
In addition, these forward-looking statements necessarily depend
upon assumptions, estimates and dates that may be incorrect or
imprecise and involve known and unknown risks, uncertainties, and
other factors. Accordingly, any forward-looking statements included
in this press release do not purport to be predictions of future
events or circumstances and may not be realized.
About Addus HomeCare
Addus HomeCare is a provider of home care services that
primarily include personal care services that assist with
activities of daily living, as well as hospice and home health
services. Addus HomeCare’s consumers are primarily persons who,
without these services, are at risk of hospitalization or
institutionalization, such as the elderly, chronically ill and
disabled. Addus HomeCare’s payor clients include federal, state and
local governmental agencies, managed care organizations, commercial
insurers and private individuals. Addus HomeCare currently provides
home care services to approximately 47,500 consumers through 203
locations across 22 states. For more information, please visit
www.addus.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230501005248/en/
Brian W. Poff Executive Vice President, Chief Financial Officer
Addus HomeCare Corporation (469) 535-8200
investorrelations@addus.com
Dru Anderson FINN Partners (615) 324-7346
dru.anderson@finnpartners.com
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