Addus HomeCare Shares Up 7%, Comments on CMS Proposed Rule
02 May 2023 - 5:32AM
Dow Jones News
By Josh Beckerman
Addus HomeCare Corp. shares rose 7% to $87.56 on Monday after
the home care company commented on a proposed rule from the Centers
for Medicare and Medicaid Services.
"We believe the specific approach and the proposed minimum
threshold would be contradictory to the goal of assuring access to
Medicaid services," the company said, "which we fully support, due
to the wide variance in state waiver programs which directly
impacts the administrative burden in individual states."
On Friday, shares of Addus fell 28%.
The company said it believes providers "in states with larger
rural populations may be unable to continue providing care due to
the significant administrative burden required." Addus also said
that the proposed rule isn't final and is subject to a 60-day
public comment period.
According to a CMS fact sheet released on Thursday, the proposal
would "require that at least 80% of Medicaid payments for personal
care, homemaker, and home health aide services be spent on
compensation for the direct care workforce (as opposed to
administrative overhead or profit)."
Addus serves predominantly people who are eligible to receive
both Medicare and Medicaid benefits. The company is scheduled to
report first-quarter earnings Monday after the market close.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 01, 2023 15:17 ET (19:17 GMT)
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