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Addus HomeCare said its personal care census declined year over year in the third quarter, mainly in lower-hour cases, as caregivers increasingly seek 40-hour workweeks. The company is expanding its Addus Connect caregiver app and being more selective about which cases it accepts, while saying it will continue serving clients who need fewer hours.
Addus HomeCare reported a year-over-year decline in its personal care census in the third quarter, as caregivers’ preference for 40-hour workweeks made it harder to staff clients needing fewer hours, CEO Dirk Allison said. The company is expanding its caregiver app and weighing which cases it can staff effectively, while saying it still intends to serve lower-hour clients.
“The slight decline in our personal care census over the prior year has primarily been in our lower hour cases,” Allison said on the earnings call. He said higher-hour cases increased year over year, and that an improving service percentage helped drive an increase in same-store personal care hours. The company did not provide a specific census figure in the supplied report.
Addus is expanding Addus Connect, an app that lets caregivers view schedules and patient information and change their work hours and availability. Allison said the app had performed well in Illinois and was being rolled out in Texas, with New Mexico planned next. He said the company expects further improvement in the share of authorized hours it can serve, though the source did not give a projected amount or timetable.
The company’s other approach is to assess cases for staffing fit, including the hours clients need and the schedules caregivers seek. Allison said Addus is trying to take cases that provide more hours while balancing relationships with referral sources. He also stressed the company is not abandoning lower-hour clients: it is working on staffing them more effectively. That approach, he said, has been a focus for several quarters.
Caregiver Schedules Shape Client Access
The staffing issue links caregiver working conditions to the number and type of clients a home-care provider can serve. If caregivers prefer fuller schedules, cases requiring only a small number of weekly hours may be harder to cover, even when states have authorized care. Addus’ report points to a practical tension between serving authorized hours, meeting client needs and building work schedules caregivers will accept.
The company’s strategy also affects how its census should be interpreted. A lower overall count does not, by itself, mean fewer hours of care were delivered: Allison said higher-hour cases and same-store hours rose year over year. The company did not disclose enough detail in the supplied report to quantify how those changes affected individual clients or unmet care needs.
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Third-Quarter Results and Acquisition Plans
Addus, based in Frisco, Texas, provides personal care, home health and hospice services. The company said it serves about 62,500 people across 263 locations in 24 states. Its personal care services unit generated $301 million in third-quarter revenue, up 9% year over year. Across the business, third-quarter revenue was $387.7 million, a 7% annual increase, while adjusted EBITDA was $51.2 million, up 13.5%.
The census discussion comes as Addus prepares to expand through an acquisition. On Sept. 14, it agreed to buy personal care assets from AccentCare for about $275 million. The assets span 10 states and serve 13,700 clients on an average daily census basis, according to the report. Addus expects the deal to close in the first quarter of 2027; Allison estimated it would increase the company’s revenue base by about 19%. The acquisition would extend Addus into Colorado, Georgia, Minnesota, Pennsylvania, Tennessee and Washington.
“The slight decline in our personal care census over the prior year has primarily been in our lower hour cases, as our higher hour cases have increased year over year.”
— Dirk Allison, Addus HomeCare CEO, on the third-quarter earnings call
Unreported Census and Staffing Measures
The supplied report does not give the number of personal care clients in the quarter, the size of the year-over-year census decline, or the change in service percentage. It also does not quantify how many authorized hours Addus could not staff, how many lower-hour cases it expects to continue accepting, or whether the app will produce measurable staffing gains in Texas and New Mexico.
Allison’s explanation reflects the company’s account of its staffing challenges. The report provides no independent data on caregiver preferences across the industry or on how the strategy affects clients’ access to care. The timing and final terms of the AccentCare transaction remain subject to completion of the deal.
App Rollout and Deal Closing
Addus plans to continue its Addus Connect rollout in Texas and then New Mexico, while tracking whether it can serve a larger share of state-authorized hours. The company has not announced a specific performance target or date for completing those rollouts. Its case-selection and staffing approach is also expected to remain part of its personal care operations.
The next major corporate milestone is the planned first-quarter 2027 closing of the AccentCare personal care asset acquisition. Until then, Addus’ reported results and future updates can show whether the census pattern, same-store hours and service percentage change as the company adjusts its staffing methods.
Key Questions
Why did Addus’ personal care census decline?
CEO Dirk Allison said the decline was mainly in lower-hour cases, which are harder to staff as caregivers increasingly seek 40-hour workweeks. The report does not provide a precise census figure or quantify the decline.
Did Addus’ personal care hours also fall?
Not according to Allison’s account. He said same-store personal care hours increased year over year, supported by growth in higher-hour cases and an improving service percentage.
What is Addus Connect?
Addus Connect is a caregiver app for viewing schedules and patient information and changing work hours and availability. Addus said it had performed well in Illinois and was being rolled out in Texas, with New Mexico planned next.
Will Addus stop serving clients who need fewer hours?
No. Allison said Addus still plans to serve lower-hour patients, while seeking more effective ways to staff those cases around caregivers’ preferred schedules.
When is the AccentCare acquisition expected to close?
Addus expects the approximately $275 million purchase of AccentCare personal care assets to close in the first quarter of 2027. The deal includes operations across 10 states and would add six states to Addus’ footprint, according to the report.
Source: homehealthcarenews.com
