Addus on the Hunt for Hospice Acquisitions

After temporarily stepping away from hospice transactions due to high valuations in the space, Addus Homecare (Nasdaq: ADUS) is re-entering the fray.

The company has just acquired Helping Hands Home Care Service Inc. for $21.3 million. Helping Hands provides personal care, home health and hospice from three Pennsylvania locations. The acquired agency has annualized revenues of $16.7 million, and its more than 500 employees serve roughly 600 patients per day.

More transactions like these are likely in the works, according to Addus CEO Dirk Allison, including some hospice assets.

“When we were talking about these larger [deals], there was some talk about some hospice opportunities coming out. We have heard some of those are still looking at it,” Allison said in a Q2 earnings call. “I understand that maybe the multiples have come in just a bit on those than maybe what people were expecting from last year. We haven’t been a main player in the hospice market for the last two or three years, just because of that very high valuation expectation most of them had.”

Texas-headquartered Addus provides personal care, home health and hospice services in 23 states. Hospice represents 18% of Addus’ business, with the remainder made up by its personal care and home health segments.

The company’s net service revenues reached $349.4 million for the second quarter of 2025, a 21.8% increase compared with $286.9 million for Q2 2024. Its hospice segment contributed $62.2 million, up from $56 million year over year.

“Our hospice care segment accounted for 17.8% of our business and delivered 10.0% organic revenue growth over the second quarter of 2024,” Allison said. “We are pleased with the improving trends in this business segment with each of average daily census, patient days and revenue per patient day moving higher compared with the same period last year. These results reflect our operational changes in the hospice care segment, and we look forward to additional opportunities to expand this important area of care.”

Hospice same-store revenue rose 10% compared to the prior year’s quarter. Same-store average daily hospice census rose to 3,720 in Q2, up from 3,477 year over year, representing a 7% increase. Sequentially, ADC rose 5.8%. The company expects 5% to 75 hospice growth through the remainder of the year. 

“One of the key reasons we view ADUS positively is the company’s consistency of growth and positive earnings surprises. Demand for personal care services continues to grow (census was up Q/Q and authorized hours/day/patient also continues to creep up), just as the rate environment at the state level remains positive (evidenced by notable rate bumps recently approved by the Medicaid programs in Texas and Illinois),” Brian Tanquilut, an equity analyst at Jefferies, indicated in a note shared with Hospice News. “Management has also been focused on boosting organic demand/volume growth with strategic acquisitions, such as its Gentiva deal last year and a Q2 deal in Pennsylvania, and we expect ADUS to continue taking advantage of its strong balance sheet to pursue accretive and upside-driving acquisitions.”