In the Face of More Potential Medicaid Reimbursement Cuts, Home Care Is Still Growing 

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In the Face of More Potential Medicaid Reimbursement Cuts, Home Care Is Still Growing Worrying about how Medicaid reimbursement cuts could affect the in-home health care sector is certainly reasonable, especially after the last round of cuts forced too many independent agencies to either sell out to larger companies or close their operations altogether. 

Today, home care remains the number one job creator and even though many of these positions are considered low-wage jobs, the demand for these services continues to increase. With the news about another potential cut in Medicaid reimbursements that could come down the pipe next year, many of the surviving small, independent agencies could be concerned about how it impacts their bottom line. 

Recently, Addus HomeCare Corp., based out of Birmingham, Alabama, announced it would be acquiring another hospice service, making that its fourth acquisition this year. While Addus is clearly a large company, it does highlight the positive influence home care is having, not just for elderly men and women in need, but also for businesses providing these services. 

According to The Dallas Morning News in its blog, Frisco home health firm expands hospice services with $130 million acquisition, written by Paul O’Donnell: 

“It’s the fourth acquisition this year for Addus, adding about $130 million in annual revenue to the company’s top line, Allison said. 

“Our development team continues to identify additional opportunities within our strong acquisition pipeline, which we expect will allow us to extend our market reach and further strengthen our competitive position,” he said. 

Addus, founded in 1979, has grown from $400 million in revenue in $2016-$518 million last year. It offers home care services in three segments: personal care, hospice and home health. Its services are typically funded by federal, state and local government agencies, and its customers are predominantly eligible for both Medicare and Medicaid.” 

Addus employed just under 5,000 full-time employees and over 28,000 part-time workers as of the end of 2018. This acquisition provides Addus a gateway into the Texas marketplace. It operates in numerous states, including New Mexico, Illinois, California, Arizona, and Georgia as well as South Carolina and a few other states. This is its first foray into the Lone Star State. 

It is a large company providing in-home care support services and hospice care for a growing demographic in the United States. Even though the Centers for Medicare and Medicaid Services (CMS) has continued to propose reimbursement rate cuts to in-home care providers, with increasing demand for these services due to a number of factors, growth is clearly possible. This should provide even smaller, independent agencies a glimpse to the future and what remains possible while supporting elderly and disabled clients. 

Valerie VanBooven, RN BSN, Editor in Chief of HomeCareDaily.com

Editor in Chief of HomeCareDaily.com at LTC Expert Publications
Valerie is a Registered Nurse, Author, and Co-Owner of LTC Expert Publications. Read More at http://www.LTCSocialMark.com

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In the Face of More Potential Medicaid Reimbursement Cuts, Home Care Is Still Growing 
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In the Face of More Potential Medicaid Reimbursement Cuts, Home Care Is Still Growing 
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Worrying about how Medicaid reimbursement cuts could affect the in-home health care sector is certainly reasonable, especially after the last round of cuts forced too many independent agencies to either sell out to larger companies or close their operations altogether. 
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