Addus HomeCare Expects 2024 Acquisitions

Addus HomeCare Corp. (NASDAQ: ADUS) is poised for further acquisitions, potentially including some hospice deals.

The company is seeking to pair its clinical services with its personal business in its existing markets. This is a cornerstone of its acquisition strategy. But Addus Chairman and CEO Dirk Allison does not rule out the possibility of moving into new markets if circumstances are right.

“As we see potential acquisitions come to mark, it remains our primary focus to use our financial capacity to acquire strategic operations that align with our overall growth strategy of adding clinical services where we have strong personal care presence, enhancing our existing personal care markets and adding new personal care markets where we can enter at scale,” Allison said in a Q1 earnings call. “We also believe this acquisition strategy will continue to strengthen our ability to participate in value-based contracts with our payers and to adapt to potential reimbursement changes.”


When examining new markets, Addus focuses on regions where they can quickly become the largest or second-largest provider by market share, according to CFO Brian Poff.

Fueling its acquisition aspirations is more than $77 million in dry powder as well as existing lines of credit.

Addus’ roughly 33,000 employees provide hospice, home health and private duty nursing services across more than 200 locations in 22 states.


The company saw 11.6% year-over-year revenue growth in Q1, reaching $280.7 million in net service revenue. The company’s hospice segment, which represents about 20% of the business, earned nearly $56 million in the first quarter. Hospice revenue per day was up 3.7% from the prior year’s quarter.

The personal care, hospice and home health provider is no stranger to acquisitions. Addus purchased Illinois-based hospice provider JourneyCare Inc. for $85 million in October 2022 and picked up Chicago-based Apple Home Health Ltd. for an undisclosed sum the following month. Last summer, Addus acquired Tennessee Quality Care for $106 million.

In addition to deals, Addus is seeing results when it comes to same-store hospice growth.

“We were pleased to see consistent positive year over year trends in our hospice business in the first quarter inclusive of our Tennessee Quality Care acquisition. Our hospice same-store revenue growth of 5.8% was our third consecutive quarter of sequential increase and the highest percentage increase we have seen prior to the COVID pandemic,” Poff said during the earnings call. “We continue to see favorable admission trends as we have experienced three consecutive quarters of sequential same store admission growth.”

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