Addus HomeCare bucked headwinds from the COVID-19 surge in the first quarter, reporting a 10% increase in revenues compared to the same quarter the previous year. The Frisco, TX-based company earned an adjusted $0.77 a share on revenues of $226.6 million in the first three months of this year compared to $0.74 a share on revenues of $205.3 in the first quarter of 2021. Net income slipped 4.8% to $8.5 million.
Like other home care firms, the company struggled early in the quarter with a number of caregivers quarantined by the coronavirus, which affected personal care volumes and revenues. But Addus Chairman and CEO Dirk Allison said quarantine rates trended down in February and into March, helping volumes for the quarter.
“We are fortunate to have a team of dedicated caregivers who continue to provide outstanding care and support to our patients and their families in a safe and preferred home environment,” Allison said in a statement. “Like most healthcare providers, we are facing a tight labor market, and we continue to focus on implementing effective hiring and retention strategies to attract and retain caregivers.”
During the quarter revenues for Addus’s personal care segment, which comprises three-quarters of the firm’s business, rose by 0.9%. Allison said a recent Medicaid rate increase in Illinois helped offset the Omicron-related decline in patient volumes in the first quarter. Allison predicted earlier this year that higher Medicaid reimbursement rates from the government’s 10% increase in Federal Medical Assistance Percentages (FMAP) would provide tailwinds to help propel Addus through the COVID-19 pandemic.
The company’s hospice and home health segments also saw improvement during the quarter. Allison is expected to provide further details on the quarter and the outlook for the remainder of the year during a call Tuesday morning with Wall Street analysts.
