Addus Homecare Corporation · NASDAQ:ADUS
Addus Homecare — Avondale Partners Healthcare Conference 2014
23 slides from Addus Homecare's conference presentation, Aug 11, 2014
Slide 1: Addus HomeCare: Coordinated Pre-Acute Solution to the Post-Acute Problem
Exhibit 99.1 Exhibit Addus Coordinated A Avondale August pre-acute SM 11, 99.1 Partners HomeCare 2014 solution Personal Healthcare toHome the post-acute Care Conference problemSM Boston, MA
Slide 2: Forward-Looking Statements
Forward-Looking The circumstances historical looking 2Factors”. following statements, Addus results that information undertakes may Statements may please notorbe may refer contains, no an obligation not indication to Addus’ occur or may in to of most the be update future deemed future. recent perfor
Slide 3: Mission
It iswill Mission We 3Reward the primary for accomplish accomplishing mission our goals ofour Addus by mission fostering HealthCare includes an environment topride improve in our the inorganization, which health our and employees well contribution being enthusiastically of our to the consumers commu
Slide 4: Who is Addus?
About Who Comprehensive Key Founded 17,000+ 30,500+ 2013 Diversified 4133 Locations Facts: is Revenues Addus Addus? employees consumers in payor 1979 Across of provider base $265.9 (many 22 (200+ of States million dual home payors) eligible) and community based services, which are primarily social i
Slide 5: Focusing on the Dual Eligible Population
Who1% Focusing Concentration 100.0% 80.0% 81.2% 90.0% 70.0% 30.0% 40.0% 50.0% 49.5% 60.0% 10.0% 20.0% Top 0.0% Percentof ($44,482)($15,806)($8,716)($5,798)($4,064)($786)(<$786) Percent Addus 5Source: We 74.6% 65.2% 22.9% 3.0% serves of Kaiser 97.0% Top Serve on Population, Total 5% the the of Family
Slide 6: Historic State Institutional vs Home and Community Based Services Expenditures
Historic State 1990 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 Insitutional Home 6Reasonably Agencies 1995 &Payors Community 2000 Care Effective .-.2002 Expenditures(Billions) $50 . County Based Billion .2004 . . Inefficient Agencies 2006 Services Market 2008 .& Expenditures . 2009 .Growin
Slide 7: The State of Dually Eligible Programs
The State Dually 37 Medicare 9Dual Medicaid Total SOURCE: MSIS 7$300 million million Shift Eligibles Programs Billion Medicare Medicaid and eligible to 51 CMS Kaiser Dual million in beneficiaries Combined beneficiaries, are Form-64. Eligible Family movingFoundation Programs Spending tocomprise 2008:
Slide 8: Who are the New Payors?
Who are the New Payors? = Amerigroup t ‘ AmeriHealth. a RealSolutions ae Nd in healthcare Caritas & HealthSpring. Hu mand. CENTENE saaMolNA WAWellCare _ “on WELLPOINT. IEC HB Con) crimes BlueCross BlueShield inland Empire Health Plan ACOs UNITEDHEALTH GROUP” B Adds. HomeCare ;
Slide 9: The Apple Challenge: Shifting to Pre-Acute Care
TheApple Transportation Personal $$$$ Emergency Family Community Healthy $$$ Living an Specialty Telephone Reassurance Meals Home Pre-Acute $33.4 Sources: 9the Uninsured, Challenge B¢¢ at-and Friendly $266.6 Eat Personal Companion Kaiser ¢Health Sub-Acute Acute $$ ¢¢ Response Home ¢(PERS) Visiting ¢
Slide 10: States Focus on Managed Care Implementation
States Focus MCO 2013 2014 No Addus Source: 10 Implementation Implementation Plans/Programs Shifting islocation(s) Kaiser on managing to Commission Managed Plans Plans and already coordinating Care onimplemented Medicaid care andfor thethe Uninsured, costly dual Mayeligible 2012population!
Slide 11: Addus Dual Advantage: A New Paradigm
Addus Dualcare Long-term 11 AdvantageTM risk makes it- The essential New that Paradigm health plan dual eligible members live safely and healthfully at home as long as possible…
Slide 12: Changing Payor Expectations
Expectations Traditional Few 20,000 Limited providers No reporting Paper Payments Care Overutilization Managed Industry Prefer Sophisticated Electronic Outcomes Economic Risk Capitation Gain 12 outcomes large Sharing not Sharing driven larger +geographic Structure: modulated small Care based provide
Slide 13: The Addus Home Care Aide: A Powerful Resource
Addus The .No 13 . . one Than Addus Dual knows isthe inHomecare AdvantageTM aAddus better moreHome position about Aid—ACare thetomember Powerful positively Aide . Resource . .effect health outcomes . . .
Slide 14: Technology Creates Real Changes
Technology Real Changes Additional Pictures Monitoring Customized Early 14 time Identification and inreporting Information Condition per to short Connect primary Diagnosis videos. to equals –the diagnosis. –the Real MCO –Early Member timeIntervention reports to thethrough Health Care the device, Tea
Slide 15: Redesign the Care System: Objectives
-Redesign 15 Shifttechnology Free Use Agency transactional the Care staff toSystem—Objectives to Connect activities focus onthe from the Aide member Agency / Member to . . Central .. Visit to thethe Contact Health consumer System Center on/an Plan acuity basis
Slide 16: Video of Addus Service Visit
Video To 16 https://www.youtube.com/watchv=EAaPHI6t-6Y viewofaAddus video Services about Addus service visit:
Slide 17: Home Care Cost Effectiveness Studies
Home Nursing HCBS 1,000,000 800,000 600,000 400,000 74,000 0200,000 1980 Illinois Scripps Total 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 42,000 1,800,000 1,700,000 1997 Ohio Medicaid Source: The 17 68,000 home 2008 Residents 2009 60+ Population Care Strategies Residents 75+ Gerontology CCP
Slide 18: Strategies for Future Growth
StrategiesGrowth Organic Managed 18 Acquisitions Care for Future Growth
Slide 19: Census, Revenue and EBITDA Same Store Acquisition Trends
Census—Revenue—EBITDA Same 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 Census in $75.0 Revenue ($ $8,000 EBITDA $50.0 $55.0 $60.0 $65.0 $70.0 We $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 interest performance United millions) indefine thousands) Store States expense, Adjusted Acquisition
Slide 20: Condensed Consolidated Statements of Continuing Operations
Condensed Maintain Continuing ($ 12/31/2009 Net Cost General Gross Operating not under for 20 innet include Service of millions) generally Margin income, Service Administrative stable Margin Consolidated depreciation Operations 12/31/2010 Revenues Percentage Year operating Revenues Gross accepted $
Slide 21: Select Balance Sheet Information
Select Balance K̀ey Cash Accounts Total Debt, Stockholders’ Debt Balances 21 Balances to Assets $including Balance 0.5 capital Sheet for receivable, $ 161.3 0.8 6/30/2014 equity 12/31/2009 stability ratio Sheet current $ 2.0 166.9 37.9% $net Information $80.6 has maturities are 1.7 154.7 70.5 12/31/
Slide 22: Adjusted EBITDA Reconciliation
(1) EBITDA Continuing ($ 12/31/2009 Less: Net Preferred Revaluation M&A Interest Income Depreciation Stock Adjusted Weindefine Income millions) (Earnings) based Expense Tax Income Expense Reconciliation growth EBITDA stock Operations 12/31/2010 consideration, expense. accepted operating (2) 22 Six $
Slide 23: Strategies for Future Growth
StrategiesGrowth Organic Managed 23 Acquisitions Care for Future Growth
Addus HomeCare — Avondale Partners Healthcare Conference 2014 on 6ix