Addus HomeCare (ADUS)

Dru Anderson IR
Dirk Allison Chief Executive Officer and President
Brian Poff Chief Financial Officer
Bradley Bickham Chief Operating Officer
Brian Tanquilut Jefferies
Matthew Gillmor Baird
Mitra Ramgopal Sidoti
Matt Larew William Blair
John Ransom Raymond James
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Ladies and gentlemen, thank you for standing by and welcome to the Addus HomeCare Corporation's Third Quarter 2020 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. [Operator Instructions].

As a reminder, today's program is being recorded. And now, I'd like to introduce your host for today's program, Dru Anderson, Investor Relations. ahead. go Please

Dru Anderson

is forward-looking morning to third Good reviewing is statements to Addus measure GAAP including reconciliation financial the recorded. will call, Thank find going calculated Addus' most also the Act may to yesterday’s and news XXXX beyond. financial and directly annual by website earnings Corporation call a Reform release. quarterly measure non-GAAP for to any expected the according quarter the also statements, of that call XXXX in conference company’s contain within meaning HomeCare Litigation today’s regarding To Private you or conference measure you. of This extent welcome discussed the and performance the call. among being Securities financial Today's others, XXXX of comparable

during this targets, like be deemed call to statements. this that statements are statements. be identify are discussions forward-looking forecasts, any Without foregoing, For statements may and to forward-looking the historical beliefs, the expectations of purpose, fact made intended of not plans, limiting estimates,

Officer, obligation Allison. would information, that third over cautioned release. and actual Addus’ Securities undertakes go update forward-looking as Mr. these from Executive materially now any no call filings turn in company to or this operations sir. forward-looking Exchange results to Please the discussed company's events the to future new statements. the otherwise. Dirk may in by important President ahead, time, result like be The hereby news factors, of Chief statements whether the forth among with At are a You I and and may differ Commission in quarter affected XXXX others, its set statements and Consequently, the results

Dirk Allison

and quarter Good morning Officer; me call. With our Bickham, third Officer. are earnings and joining our Thank XXXX Chief Operating you, Brian thank Financial Poff, Brad Chief for today for our us you Dru.

the third will quarter comments begin detail. usual, and results some will then more overall I in discuss Brian As

our any to be we respond comments would to Following happy questions.

the of in that many the and environment future ever. ability our I'm created to great As Addus's their challenges I you opportunity team to pandemic In over already eight COVID industry know the is the and are a months have optimism and dedicated execute as demonstrated members the there HomeCare meet proud my has it of of these with challenges upon about especially leaders to strategy. as difficult our spite mission team past remain and until our operationally solution continue of to virus. the expect

consumers continue provide an quality We safety. to to care added focus and patients with on

to to continue generate through and reported performance third We including quarter both most continue have and acquisition, the we recently operating results. strong organically XXXX business

solid Addus our operating you announced As in financial of we third results with yesterday, continued quarter the performance XXXX. the saw

of during the compared $XXX XXXX quarter revenue for the a of from impact on earnings up despite was Our million the per Adjusted for of quarter quarter. our increase third XXXX $X.XX quarter third third the share $X.XX, COVID-XX for to was diluted $XXX latest of XX.X%. for XXXX, million the quarter revenues as an third

of Our compared as for of million million XXXX the third adjusted the $XX.X an XXXX, third was EBITDA for to quarter increase quarter $XX.X XX.X%.

Our quarter. second the adjusted increased with EBITDA margin the for sequentially XX.X% consistent quarter to

with to the rate. adversely of be XXXX COVID-XX During by decline our pre-COVID XXXX, approximately $X quarter of continue a million pandemic impacted third the run from our revenues

patients. New still degrees to limiting of and occurred where hinders the in New new three the of case which facilities year. number hospice our York this see but in ability varying This operation market personal was reduction in Mexico our quarter business, we our our As access, particularly our all segments second work in a with care

run recent X% the revenues cases X% negatively our will of by occurring across to continue as markets, approximately fourth our result be increase quarter affected number to a pre-pandemic a we our approximately market. York rate. the cash in was COVID $XX compared this in estimate quarter $XXX to of strong flow As our over our at is to XX, The million. New cash third reduction Operating occurring million, majority September in of increasing balance XXXX

diligent of sure making Addus cash a many have states eight manner. received as pandemic months, the our During last providers timely in such the of that have in been

partners states even have to these payments committed MCO providers, remained virus. We ensuring to and are prompt the of to this who grateful to with our challenges

passed year. to of in effective rate to X, the city for. A of approval, already Chicago offset year rate included will fiscal Chicago this XXXX, wage XXXX city city's wage was The which discussed, $XX minimum Budget statewide January XXXX, to adjustment $X previously has State July X, of subject As minimum cover which the May to raised in increase the state by Illinois applied the effective be this on increase is the hour. federal we per increase

Our results of increase $XXX,XXX. wage recent an quarter for include approximately our this due costs most unreimbursed increase to the in

of with is payments by X.X% update an affected York of a pertaining the effect York March reduction and with Health reduction. was New after The on one-third which that X, reduction Department board York across XXXX through April negative state January January State would XXXX effective which I certain reduced quarter X%, this results reimbursement the eliminate this our this State non see to X, by you Approximately our similar immediately XXXX the New April effective X, directly will effective effect. the in rate year. increase temporary additional New XX budget of all business be We fourth announced Medicaid developments for want XXXX. uniformly was of also should the to exempt

also to discussions the begin rates service see to their started During quarter we providers. MCO certain third XXXX, on of Medicaid payers

changes. care managed immaterial rates maintaining our been has with Our team Partners MCO our only at successful with

the the value community York with to and rate and home New work our state to help future of State any based services. mitigate We leaders Association of continue educate reductions

One budgets. the state next couple this of virus challenges our potential on be years could the of over of effects

revenues, has the pandemic months relieved general impact been originally this as and tax not much reduced the last population. about as COVID federal has states Although to eight the expected due over state

an which of federal are In receiving as Medicaid duration currently additional part through match of CARES goes continue addition, XXXX. the X.X% will emergency, through states of first which the the the health Act, quarter currently

recognized. having Our patients significantly facility a we in home-based challenging long-term care the state's safer cost believe environments, effective than is our today's in leadership of care which and

XXXX, our it's stated revenue end the issues of rate growth lower few last we lower have the of expectation, higher the New same-store quarter, For experienced at quarters. New the the in time. our personal our rate growth than York This growth we store is care growth but X, quarter see first our of our third slightly York. XXXX acquisition of was same is VIP in became mostly This June third on driven In calculation completed part Healthcare by Services for X.X%.

with census care of about York caregivers in the market struggle approximately XX% what VIP and impact virus. for growth year, the to continue of same-store acquisition, Our remains Exclusive first X.X%. this below personal New families quarter our have the as been the would we saw

Midwest new wave in modest also we experiencing states, York, the saw our New to of virus. addition in volumes a reductions Southeast and which In now are

have a week, of of two in hours billable are what largest pandemic. very our Illinois seen markets, we New are slightly we the and encouraged recovery However, now to average ahead which saw beginning just that running prior of Mexico per the

segment January X, basis, a Illinois on to the quarters. rate growth sequential personal numbers, upcoming the wide caregivers over hold on same-store care On solid X.X% see we in company personal contributed census. to see in care improvement increase we our a an in increase With continue few to next patients in continue our which same-store reduction should overall hiring and our in

same-store X.X%, our For our the X.X% facility to discussed. as XXXX, revenue saw hospice quarter third issues Mexico census access due we year-over-year, New program in decreased hospice continuing decreased just our daily primarily average of

our continued skilled settings, team nursing need facilities, limits identifying who facilities has patients facility With new access the and assisted on working encountered as in with hospice such based and to challenges sales living services.

primarily growth in base. non-facility due same-store our referral admission did an However, X%, hospice experience increase we sequential of to

referrals Our last to increase our under year, to Home Medicare X.X% improved but be while X% continues basis, reduction service an sequential non PDGM. compared year-over-year, of Medicare were revenue in decreased a adversely impacted Health by approximately on basis XX.X% our our a XXX patient for by institutional fee revenue early Home our approximately up and same-store points Health in volumes mix,

XXX number, and volume basis this recover is mix admission increased in Medicare our late admissions which on to did of currently of our sequential Our Medicare patient a QX approximately year running basis. slightly has points ahead begin pre-COVID

creating maintaining welcome this to members to state of closed expands the county We're team announced about I on and all HomeMakers completion strategy of X, and Pennsylvania. Addus. of the excited our new care very on and November service in we HomeMakers, provider where we acquisition a geographic care with coverage the This strong is our of in of states personal state across personal the As lined from want operate. acquisition we transaction the services the counting

of an part at As you strategy remain our and acquisitions know Addus. most have of growth been important

to take occur. opportunities capital allows acquisition maintained We us strong they strategically have a structure, which advantage as of

the short early are took as identifying of we closing pause in While pursuing acquisitions phase additional reengaged the now segments. look operating three during and COVID the of at new opportunities fully each we acquisitions our in a process of pandemic, from we

are during strong. believe continue Our And next can remains while months. few that acquisition we being and we acquisitions additional we close pipeline position appropriately liquidity cautious, the to

had we grown have Texas. space four past we our corporate outgrown over that company our found the we Frisco, in years, As

a focus just first XXXX COVID the larger prior space our to headquarters. quarter allow negotiated needed We XXXX, we office our quarter for became the our that being our the XXXX, needed the corporate support with in additional of to to lease fourth old apparent this onset In on we conservative we to in office expenses, that space personnel growth. it increase finalize of near virus. of the While we

third quarter old we location. our headquarters of new into XXXX, left moved the During and our

are still While this we working move. about remotely, we excited mainly are

This move us office our of grow gives own support ability next team in did our to the require few write the current corporate the years. to continue terms as the remaining we us to lease broader quarter. off over new Our

team back mission the a months, staff I past wonderful a I'm our job support over to proud extraordinary living during eight look times. see of caregivers of and As done have

commitment in to in COVID-XX especially the with their healthcare spite the segments continuing virus. Our serve All of patients thank to their team patients in has our risks of Addus patient putting of the needs associated our team consumers caregivers first. the willing all I been homes to care. for appreciation and deserve want all for our

value our this I to want the to Brian, Before turn team remind of service. our over I of

these the a call the mission over COVID consumers world, home for to care. individuals patients. and virus for needed country, them while need we as still safe virus, While challenge of to as much continue keep is let be our from and With serving Each our to the at values providing Brian. can we to turn or live our cared need that, while or the me well

Brian Poff

Thank solid financial quarter in growth third had consistent everyone. the very XXXX you, of morning conditions. Dirk, for demonstrating good a challenging and this profitable Addus performance

with Personal revenue revenues revenues total breakdown were million continue the $XX to or ability The revenue, revenues million. $X.X revenues and These executing our noted, were revenue, Care of results. or for HomeHealth Dirk or $XXX.X hospice demonstrate strategy of million net favorable results of follows. care organic were revenue. were As third growth our service was million, as XX.X% quarter XX.X% $XXX X.X%

during facing still in a pandemic, of improvement are quarter. we COVID-XX with environment ongoing sequentially saw the the we While the some impact dynamic volume

across they our We protocols strong believe with place continue of demand in care with the country. well-positioned expected model the to meet additional business are a in the rising need cases in patients a place of support have we number face and will safety to and

reflect incremental in we we the $XXX completed the million. Our and total earlier in the revenue XXXX acquisitions with annualized combined acquisition results of completed XXXX, benefits also four of one approximately

pursue and acquisition and a pipeline of evaluate potential have to continue We opportunities other transactions.

to a results county mentioned, revenues financial be operator personal $XX.X of closed Dirk financial on November acquisition results. for accretive include third this the our we care we of expect acquisition with and the Pennsylvania, million, homemakers, following. on As XXXX XXXX to immediately XXXX of quarter in the X, Other

year. quarter Our for XX% margin to gross was last percentage XX.X% the compared third

the quarters increase from be XXXX. the the saw G&A margin year we the to five time for of results net quarter expense an XX.X% excluding M&A $X.XX in Adjusted X, of of which of quarter XX we company's the impact basis from in a quarter for non a During the was second income of to diluted XXXX quarter, corresponding in increase, over slight quarter, $X.XX XX.X%, minimum XXXX, third quarter, adjusted was the it our stock-based where [ph]. the a last X, the is expenses quarter. the rate and This the XX% Chicago, XX.X% compensation other G&A fourth sequentially points of $X.X expected of of $X.XX. third retroactive exclude transaction margin restructuring lower XX% is expenses it the reimbursement per increased X% per XX% prior of XXXX, includes from but of from the of the $X.XX, increased for Covid-XX the effective Illinois cash on EBITDA for write-off increase adjusted Adjusted lease expense in for achieved third which and XXXX. quarter was increased July compared in million EBITDA approximately from $X.XX million The effective EBITDA for January the impact share wage was third quarter, last million from related up of have $X.XX, in year. costs quarter the to revenue revenue third $XX.X The adjustment. year $XX.X XXXX. third XX.X% following. share Adjusted quarter from of without to for prior

the the the As incurred share retroactive of third office from during $X.XX. approximately of of in of expenses income lease costs of corporate result other the the cash Illinois period. the stock of non referenced transaction was Are adjusted impact per relocated million, costs restructuring Texas $X in a and of the Dirk results third other our of quarter, quarter on increase Illinois our a compensation Frisco component restructuring rate our exclude we based remaining which and M&A and headquarters write-off space $X.XX, for interest of term as XXXX of primary $X.XX, and prior $X.XX, $X.XX,

the Our consistent quarter rate and of XXXX our of tax the was the sequentially quarter range for XX.X% within with expectation. third second

low XXXX. XXXX, end the tax of DSOs of the year end to days quarter third full of continue at expect days XXs. XX.X with the For XXXX, a quarter of the the in we were of rate XX.X to mid compared the at second

a of We in continue providers service being prioritized consistent from states of home to in see we payments the our with based community which operate. many payers majority and

revolver, $XXX to million, on by cash of at $XXX.X net and XXXX, to million, with questions. September our XX, debt thank hand us. line I'll the us of We want quarter third ask comments our company provided operator Our total prepared morning. well under please for operations had This cash the in capitalized your $XX.X for you open the availability our $XX.X million leaving to and now bank continue million concludes acquisition pursuing this strategy. being


first in Our the line Brian Instructions] Jefferies. comes of Tanquilut [Operator from question

Your question, please.

Brian Tanquilut

morning, good quarter. Congrats guys. Good a on

Dirk Allison

Thank you.

Brian Tanquilut

thinking primarily to about your should one on Dirk, strategy on already. I in kind my you about deals? deals this Or deal investors M&A we wanted just size going One and would first geographies ask, size. you've you. forward? how Are I in you couple then focused question asked to your we this be in terms larger of and range? a guess open But Montana have be of Pennsylvania. for me deals in of done appetite Obviously,

Dirk Allison

have we and Mexico the continue is mainly other of build opposed and to try try in to do say, things one would said have markets. what also strategy, acquisition to density service, And our that to care hospice in we and but geographic New HomeHealth personal to states Concerning add today. include to only looking Yes. not as

fill of you'll look So, our think which stool, the continue in obviously we look find states Medicaid which because will business, have the markets, in out have at time, our clinical same to want Home personal our the the they're a continue what market, those very something to as is trying hospice all forward, of going biggest managed strong to But we legs see, interested so we that providers, market, at I side the that operations. in to that's to all business care levels part we Brian, currently and there providers, three we is managed Health adding of in. that care three that speak in care of something

So the think, be assets tend I that you the we to sizes. care right in now, would tell personal

glad done we the able be to this we've both year. So of were ones to close

Some of deals at the looking larger. clinical we're are somewhat care

Brian Tanquilut

Got you.

shifting gears. then And Okay.

elections But of So us you think obviously, is to invalidated what we the Can very about today, payer as how expansion. heavily should about Medicaid. towards I your Supreme review mix -- know, by tilted If the Court obviously the Medicaid thinking be Supreme ACA. is exposure ACA risk? I your just Court? is the remind

Dirk Allison


-- Medicaid If that of around that is at last four you six over negatively. our so age positively four our care on the of or five, years the plus. we take consumers didn't or really us the it states XX look years, the of and affect patients a side Most across Medicaid average or of number occurred expansion

are a bill percentage very patients large, And eligible. of large of so our, our most

prior to And so the qualify for they ACA. Medicaid through expansion

a change much having is not we that company there. at our it not to out that affect all. It is would But helps. that think if it was mean, I like us, ACA for certainly we something So something there obviously,

Brian Tanquilut

me. for question Last

of the reimbursement. parts on moving York New touched You

York rate And moving Illinois, about there's changes, I increase we for in of Chicago July different another New the So increase guessing parts, wage think year. reimbursement in then I'm as guess Brian, next January. minimum

quantification for us mind those modeling don't some moving purposes? you us parts If around you. giving Thank

Brian Poff

one. Yes, Brian, handle can that I

So York, the about comments, Medicaid across which board Dirk in is on really reduction a seen New not as X.X% third our we've to mentioned material providers, which us. the his to business, is of

seen Medicaid moves this the real payers in at any haven't non-state other We point. material

would kind around what it's to we going forward. hard that quantification put of So a expect

work has lot concrete knows yet. everybody those to for look think money, of they've done but to nothing fluid save been situation, New really, that York as of try has come out a I discussions and fairly ways to a of

So we'll wait On last land. Illinois think is delay. kind they see rate increases and to be forward, to where timing with year of going what we going I similar the saw

our year, a I increase the similar very So per weight I full saw what than was for necessarily is less from and last think which above, previous. scale a didn't think was but be impact it we little the to to this impact why little us take our Chicago so was $X is going a we year rate

So two I moving those kind of components. guess the answer

Brian Tanquilut

up just follow that. on a Brian,

increase, about roughly like million of right to increased to cost. annual $X Is $X for $X, Is Chicago way So think the to basis? the million translating that? example, on it's about that that an

Brian Poff

QX a about What was saw $X we $XXX,XXX, just Yes. under in just million.

that going about on it's is basis. correct. That be a to quarterly So

now, right are So correct. you

addressed We the And for that the see state's in one in next July. be going next time $X are budget through year. minimum to more will Chicago increase wage

Brian Tanquilut

All it. you. Thank right. Got


you. Thank

Gillmor of the from Baird. line from Matthew Our next question comes

question, Your please.

Matthew Gillmor

of terms X% in pandemic of end that guess ground? terms sort is impact pre for additional you did exit was, to I outlook the of some third kind impact? are around was yet? that haven't of with the of COVID the quarter we're first the I a quarter. this fourth Dirk to of revenue the I does Or I you providing, -- where of seeing -- were relative disruption you the sort mentioned thinking I the And terms -- reflective as it like seen that ask you're question. where does curious. current that Thanks the I on dynamics up the think, did in anticipate dynamics guess Where about X% to revenue Hey. about you're in wanted you

Brian Poff

color we of is Brian. he we trajectory want coming What out This saw to is flattened into the volumes. QX, as end it on really kind Matt. Yes, Dirk I'll out QX our if as add of about. start of far and

X% cases. a are in seeing QX, of think in X%, for rising comments I Dirk's we number

we're I So think view how that could on taking be impact cautious very a us.

of our cases obviously standpoint And if do our being on that we've last see a different I in place that for continue happens something focused we've to markets well this with certain is We're think rise. PPE handle from what of over they go environment been four more year. of if prepared into three to from we've or very that. a seen But that for kind a to months. prepared type got we'll protocols perspective, lockdown of the

Dirk Allison

That it's makes the somewhat no that, was I already impact. -- the that to where flat basically saw that saying means third what that we quarter

Matthew Gillmor

was hoping anything us know And better a And enough. labor Fair And dynamics. if I seen market translate benefits. enhanced unemployment then that that on the reduction you've on just of into or sort had to front? you retention, could hiring I faster curious Okay. we update

Bradley Bickham

is This Brad. Yes.

hiring, you of about August look business in forward. from X% kind if We caregiver hires at improvement probably per when look at really we're seen have day. we up Overall,

still So challenging, is impacting trend is is benefits they New challenges spite favorable. in York, hiring And that some that that's very market. enhanced still of has York some still there that been which in have New the unemployment

improvement we In being some locked down. in seen have is I encouraging. But think numbers, the hiring addition, is this which generally

Matthew Gillmor

Okay, great. Thanks very much.


you. Thank

from Sidoti. Ramgopal question of the next from Our line comes Mitra

please. Your question,

Mitra Ramgopal

for Good the questions. morning. Hi. Yes. taking Thanks

you accelerating move? other and was COVID now that York, pre New Are COVID, result provider going a their to obviously states a states you. think benefit I of look you're for happen I wondering, in that like to maybe seeing shrink just be as was First, networks, that seeing to starting

Dirk Allison

help -- during as far the out with pandemic. saw during is coming the kind one providers COVID the so to Care Act, they of went the Well, of we funds through things

have would very the the about employment cautious state. doing and their affect think been I out companies in states anything that

So in have that not to have allowing we've the that put budget kind a say. additional that's things process up further. no, a networks this I on has been now might of operate. York hold. seen point, any the know New was the considering to are tightened do long during that At we -- way shrinkage states That their network bit some

now towards of we right So are the the not seeing COVID any because networks. additional movement of narrowing virus a

Mitra Ramgopal

And seeing That's Okay. on then any you opportunities acquisition increased was valuations not nice But pandemic? out there terms you're front, that addition there obviously, of the in have before existed or looking great. announced. a the might just again, commentary ahead

Dirk Allison


Let me take.

us valuations had the that out the we a that pandemic bit of things coming is One are the seeing. of surprised

on seeing very that are the are pandemic pretty quite honestly clinical really this fact strong, valuations that's both clinical elderly being care We and I and driven think the has country. of important home-based the the that whether to non population fact that

I has that seen been think that like and seen. ourselves have strategic some firms equity other private something has

the valuations valuations on to been higher the some than clinical the of thought being have out seen than able are said, would our coming have maintain transactions potentially we we the we've And care, have That personal much we pandemic. better in recent side. of care so that

So that's something nice see. is to that

out next you've happens the of see high. interesting come some still and hospice on Certainly, early We'll yet the providers COVID been pretty side, know both valuations. to HomeHealth if year, following PDGM come maybe of to lot Those those a out after that. are seen valuations I virus. what haven't be We

gotten of that things come And times, So we expensive. more gotten it, it expensive. you of certainly maybe not as tells bit at out kind have a less

Mitra Ramgopal

or Is then being a can to home. Okay. And more finally, or was there hearing quantify you is hard And to in terms too been it occupancy. Thanks. home affected too small that benefit to something of one willing a say you is stay perhaps little people certainly maybe that we've just to thing here? nursing at

Dirk Allison

the Well, a what's to I the virus think effect a That the material. able to team do said, come sees little being of right is in that think early out or now, anything it's transition care I it think quantify for there's healthcare renewed be I it's this, taking our very real care focus obviously, that's of individuals that, and the they of a important in we take in believe We safe mission place like past place a home. people XX been on age. their to And as of our years.

so, we believe emphasis we and something states that's home And of is a seen importance care. the others from renewed that payers on have

Mitra Ramgopal

for again the taking Thanks Okay. questions.


Thank you.

comes of from Our next line question from the Larew Matt William Blair.

please. question, Your

Matt Larew

mostly Hey, good for or kind renewed different as having different that might seeing morning. alluded care taking environment was with any of in or ask you? whether you're CMS And reflects, of about nature, and toolkit t LTSS. models, around just retrospective -- various to you're home of in a interest Dirk, on state recently had the funding opportunity this or that it out sort at trends you but of states conversations people you conversation to focused thought set maybe result an in trends home opportunities

Bradley Bickham

Brad, care for mean, looking lot different seen specifically, opportunities This home. I funding a discussions of we've of Yes. is with haven't around states people to that, take at

I haven't any an the have around on we think out, active But different impact with out had really funding keeping of I think can sources in think I states the extent keep the and expanding setting, virus them there a facilities discussions facilities, people that interest note better. certainly taken that that, is to particularly of people for that.

Matt Larew

paused. but about two know, in there COVID on, that more were plans. Fair see been will working when you difficult be, a some MA those to with opportunities is wanted for seeing enough. that start point, but I you when of this it's are might then XXXX? just post XXXX or couple data Or you this had predict terms is in those progress at Okay. And to ask And have pilots been realistic those?

Bradley Bickham

value mean, I kind and think a time the have Yes. which definitely a have about, data some the data I This do those meaningful projects far on we probably we really months the are plans we're to outcomes as MA currently on on that. being Again, as started some period excited XXXX that'll up six forward based is in from variety That the we're to that But looking initiative. collect away September/October from Brad. there, projects. projects, getting of some projects we said, it's of starting data

Matt Larew

guys. Thanks, Okay.


from [Operator the Instructions] comes line John James. you. question Our Thank next Raymond of from Ransom

please. Your question,

John Ransom

think Addus, as morning. integrate the wondering personal do meaning, able you future you've you and home the find a care could that or in of to assets find existing I'm have like good you where as to And legs three care, you point to care any about stool, trying been just the markets needle Hey, presence? say personal hospice? you to of markets big complimentary a M&A, have thread to is formulate

Bradley Bickham

do Dirk, take want that? you to

Dirk Allison

want replicate markets. New do We Mexico to Yes. in other

all able we're excited market. additional five have of of don't XX healthcare us our with XX probably markets, there in to of I Now, the four very legs But if where about think we we're any are markets to operate three add in being states, believe that potential of it. or going

from Some you side add and one clinical of then may of more you grow leg that care, the be that third that internally.

would we're our could those talked And company. got be would We've be or for that markets, so markets if acquisitions We're three about. as about desire. a as nice excited looking in find two that looking we're something you at we

John Ransom

where And PDGM for primarily I heavy on That you the now? look secondly, the know of PDGM. you model then to acquisition given lifting integration targets, And had that process? for health. lots to Okay. you where do focus feel Thanks. you get you're us of ready companies comfortable are segment can as at it in potential smaller you of a kind Kind

Bradley Bickham

or Yes. because has it lot far is This as I of bit on what a of would our and off COVID pretty say and environment. little referrals received far institutions, think still we good We've the strides early of have a they sniff front. there. made made Brad. will slowness, seeing then from sources some working some the progress than the dropped the think referral as on of had we're particularly look as worse on virus impact I the little coming disproportionate would as the on some without from makes I structure, cost a virus, sluggishness the PDGM the a But that in just think be PDGM numbers virus I you

margin continue improvement you the there. Health incremental Home on think some look gross has certainly to our improved, If we'll see I front,

side. in on we're forward certainly So to Home And add assets I some think shape. Health we're looking more the good

John Ransom

Have move be for lastly. of pulmonary MA at future? any to models just going So beyond fee in the you think then for that simple been least on land will plans more service? kind service with foreseeable do kind you're there discussions the And for fee of

Dirk Allison

have moving more based created into basis upside probably us, at might with starting John, see risk that in more there's risk approach. We I a and a companies team think be from on both to don't to what we're full, and work may payers actually committee, potentially model developing global which looking in we I work service some paper in in is based seeing, a interest model the care a a try eventually maybe capitation. eventually work year be value towards value just there or the ways a models will up downside. real last and a to that where based with benefit, today a can

sort -- partner to paying a for our we would ability -- relate global more party for based looking at across That in that some to fee will limited the from will into will country. be we're cap. of value service be market. not the move But way a or by That a We could something us, spaced around payment bonus model. be into of

So care in we'll we're And personal look then where care. remain based for markets fee in some ability business going move we're mainly business. larger service to the a our value at to in

John Ransom

Great. much. Thanks so


answer session I'd of back and Thank to program. Dirk Allison hand you. remarks. today's the to like further program the This include for any question does

Dirk Allison

you thank being to part a all want I the today. in and interest call operator. great week. you, Addus of Thank for Have for our


conclude program. today's for participation This Thank you your and gentlemen conference. ladies the in does

now disconnect. may Good You day.