Addus HomeCare (ADUS) 9 May 212021 Q1 Earnings call transcript

Good morning, and welcome to the Addus HomeCare Corporation First Quarter 2021 Earnings Conference Call. Today's call is being recorded. To the extent that any non-GAAP financial measure is discussed in today's call, you'll also find a reconciliation of that measure to the most directly comparable financial measure calculated according to GAAP by going to the company's website and reviewing yesterday's news release. This conference call may also contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding Addus' expected quarterly and annual financial performance for 2021 or beyond.

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

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

and Dru. and with Chief earnings today Today, begin With some me Good more you, discuss first President, I Brian the and in Operating XXXX overall Financial will Thank Poff, detail. Vice quarter quarter morning, President first then to will and call. Bickham, Executive our results Chief Brian welcome are Officer. our comments, our Brad Officer;

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

continues mid-February. While momentum begun to in begin create see to the in -- pandemic positive markets our a we challenges, we starting have number of

to disruption some the near is this and since our by over in difficulties country to look in time rollout COVID have continue reduction no to in forward and the months, to the COVID pandemic environment the being progress to December. We when both the operations. encouraged the peak made we steady cases several longer expect a are late I future with While the the vaccine next the

to system caregivers they help keep has our part I'm the work care pandemic understanding the demonstrated our of of and safe quarter announced citizens from community-based their Addus team health the our and care. home that unprecedented the the made dedicated these to this increased important from during takeaways meet as been of have for an execute importance virus One that of of been we upon proud and financial XXXX. even of the our need. elderly important Yesterday, we extremely results mission pandemic. daily first had consumers has our strategy this the ability sure

We solid COVID challenges continued performance, that even with we operating all facing. our the from are

quarter occurred of XXXX. first diluted quarter the as which of quarter was to prior year's Our as quarter last $XXX.X the for July $X.XX as quarter million revenue for $XXX.X XXXX share first for increase, full was of well the first first onset per as Chicago the earnings despite of Adjusted the minimum for record the a to $X.XX compared million XXXX. wage quarter first of being COVID-XX the effect to both the X, XXXX, on compared

second quarter approximately last XXXX, on As cover with call, be our wage and results. for earnings first the $XX.X adjusted on to our discussed of year, million increase compared Also effective will as reflected state XXXX rate Illinois adjustment the became we an had our minimum April quarter last the -- our XXXX, per million this X, beginning to earnings for of sorry, I'm increase $XX.X quarter was EBITDA XXXX share of first X%.

COVID-XX quarter first by impacted the continued our same-store virus. As to expected, be revenues

just discuss degrees quarters, case segments few X was our I in all a our business, will varying occurred in which last this minutes. few As to the of reduction in

which company, a pandemic, number to especially states, changes to relief of President into general you by from The reimbursement. signed federal states legislation suffering Medicaid law sure will provide relief the to I'm reimbursement. budgets financial of strengthen help bringing are was aware, changes Medicaid revenue will our their and the positive in these our the is around the that government COVID the As leadership of potentially losses about

in to bill May. dispersed in We expect billion be funds see the to the $XXX starting state this from benefit

additional specifically to for Medicaid is soon, federal should support federal Medicaid be home services, the match, services. this monies We use government around clarify for community-based community-based addition, to these allow the Addus. home to and positive In rules will which the believe XX% should and additional which a states much start

the did scheduled July minimum include offset On on This level, be face rate wage governor budget upcoming we increase fiscal of XXXX. in his for the state Illinois additional funding for wage increase. an XXXX $X Chicago. wage last to effective the one increase X, will The increase

However, this months similar currently years, to delayed effective is scheduled is on state X, X XXXX. reimbursement scheduled few past to to be January the become rate and increase

federal We continue discussions to funding leaders potential government. the increase and a about accelerate of the the have reimbursement timing the to additional Medicaid with state delayed of result from as

continued As earnings assess the statewide we change. our last CDPAP to we York on discussed call, have New

While a program published not revenue with profitable we it the reimbursement rates. and particular million service been very New has in be in will approximately have York, recently this $XX of so line less

This you me in form of services. caregiver is care not for working we fiscal only directly remind with the Let that intermediary are personal our CDPAP a a consumer. normal

XXXX granted. a from omission and the be understand have a the finalization from may state concerning additional York provider few filed fiscal the of our awards budget selection New We process recent protest that

keep information as and remain we explore receive We program. to additional this particular potential other in updated options will you

timing months other no state to be the if are As implements X these changes, program new changes made. we XX the structural believe will it fully of at least before to

our been virus. revenue mentioned, has the As COVID-XX affected same-store I by previously

all are X a segments trend in to in positive see we starting we operate. which However,

compared without XXXX, XXXX, impact same-store growth the quarter For the last quarter first quarter the when pandemic. full of first of to our care revenue was a the X.X% from personal

increase a discussed in on the into saw number during we call, had November quarantine. who significant caregivers we As of and our our to enter last December,

again lasting first of November, client saw week the until in also February. starting call-offs We increase

spread addition a to several estimate across our COVID, on the impact a on we where due personal -- provide storm had we negative In states first approximately by of care $X million winter straight care to and as impact affected personal quarter that the were services growth result. revenues we February

the quarter XXXX, the to week fourth per XXXX, from quarter our quarantine which through were employees COVID We experienced With to who went our surge we their large hours increase XXX quarter affected we January. in unable employees discussed, consumer. in of of our fourth quarantine care XXX quarantine week in third of in employees and per a in serve

down our help per week, which to level employees rate should a of return second is normal number this our to XXXX. April, now in XXX quarter growth For more

as to our care. it in dynamic We also saw client a personal relates call-offs similar

the caregiver in Our the for to XXXX, over leading August hires same day X% amount care personal year. per through the October hires approximately a business in period time of up XXXX were highest frame over

and in November we of in to during increase XXXX. hiring year, past the virus X slowed the down our December saw when where same months counts, this X.X% were However, versus we

quarter over XXXX. X.X% hires on and improve did Our hiring per the the sequential X.X% numbers first business a basis increasing of with quarter day XXXX first in of

April. ability in far hire the with as to trend positive numbers continue we to see our and We encouraged in are so

Illinois, the to quarters. X April are our expect positive trends care reimbursement in we for X% from our with care, same-store X% at the or expectation personal along the we next increase above seeing of be rate With personal revenue to few

of is X.X%, our of the same-store first quarter improvement which year. last point basis XXX decreased fourth hospice XXXX, quarter still our revenue XX -- For a over

While from of of quarter XXXX, the since did fourth quarter of under we XXXX. hospice ADC with see X.X% our highest sequential of pressure, a increase approximately remains the quarter admissions first

admissions of ADC. seen a median have in have days length the in This been stay decreased XXXX days just of median XX early few our contributed While lower over our from our strong, reduction to in length January, same-store XX past quarters. which to stay we

XX.X to ADC hospice showing of with even to ADC bottom middle on increasing to of being New January April. it continued largest are continue our effect increasing With improving is out an median census. in other when slightly negative trend growth, -- hospice continues have market, stay March, the while upwards markets started Mexico Our second overall our see length we to through days.

am grown As has when for of through the to over to hospice the this our City year, very closed proud HomeCare and Queens going including grow transaction continue being team this transitioning our to from acquisition, I which census XXX December despite to business ADP. this -- X, closed April of in Addus XXXX, for stages of normal the system. while we Homebase XXX integration, converting

facility and vaccinated around to and personnel living a New this hospice normal return will their Mexico As to percentage continue see we losing to residents both as continues living we locations, help personal for believe more assisted are market should who ADC. New a Mexico rules facilities, -- access of grow our independent

our to Since our of a same beginning of to XXXX, effect the in which trend compares with into this store in home to of X.X% the first health April. are had fourth quarter prior quarter is health revenues. admissions experienced We This we see to favorable of XXXX the steadily health the same-store continuing increased our of home decrease home excited revenue back the level, XXXX pandemic.

up February XX.X% health marked the were the same versus XXXX. January period XX.X%, being turning While point same-store revenues March home in with for down

our We growth April are home health continue this trend. seeing numbers

concerning Turning to our acquisitions. efforts

strong slant towards continues the Our to be pipeline current health. with home

of have markets existing next levels strong to with focus which months. that personal we we opportunities, our services care primary the continue the on we to all on acquisitions position, that add our additional goal With provide. with Our ability having X additional care during close believe few to liquidity markets remain acquisitions of the clinical

for revenue operating clinical while we transactions high, Addus. accretive services bringing are continue pursue both to purchase While synergies which multiples to will remain and

these to year, look back over the I living they've am as past the continued times. team of do during our proud I tremendous a mission job of extraordinary As

serve to of our want homes. first. the especially patients deserve care. health thank in continuing consumers trajectory and the care team caregivers appreciation their have I for COVID-XX and putting been needs Our to positively segments caregivers to of patient affect of the by in All pandemic patients this impact continuing able all commitment to our for Addus the our

team over services. I to call remind Brian, our value turn Before our wanted the the to of I of

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

segments beginning everyone. improves. Addus profitable trends at quarter at return as the X morning, good year growth revenues or our XXXX improving the and and first of environment to positively, had solid the with Thank trend consistent of our growth With continued our to to financial we to our pre-pandemic Dirk, hospice levels. normalized same-store you, performance start volume X COVID a ADC look and more forward profile a above comparable

will also April from on effective rate the Illinois, largest increase recent We our most from became X, benefit XXXX. which market,

the comps strongest of full period. over year's our COVID-XX. first year at we quarter really the before felt quarter Looking Last the was prior impact

with quarter. the year pleased the results very were we current for So

people see to and more we hospice are care returning to health, and continue improve volumes Our optimistic about levels we access. care vaccinated, and facility pre-pandemic are greater volumes home personal as in

positioned X business completed in approximately meet our acquisitions results acquisitions demand confident We the X strong X X the have more personal are which the as of total approximately restricted a become place in over $XX half years are we million. of $XXX less well million and to a the in environment. believe we combined consumers annualized second expected revenue model hospice, benefits Included completed incremental revenue. of annualized past care have totaled and in in XXXX; in Together, in

of market on that in confident personal have minimum continuing in of care our line year. a acquisition we are a personal current conditions, million in to strategy stated through $XXX operations markets. where to of of services achieve or this We pipeline with adding robust continue will revenue transactions exceed potential that care have Based markets we have remain existing clinical enhance our annualized and our we opportunities to goal adding

Home following: quarter which of of XX.X% follows: to financial of total quarter results of first revenues revenue. personal for health noted, for largely an for the higher from first clinical includes revenue year, our up margin last were end revenue. which by of revenue, XXXX Hospice first closed revenues the XX.X%, service was gross $XXX.X of new near Queen Dirk the increase XX.X% revenue. approximately sequentially. of million acquisition, attributable as breakdown offset percentage XX% of mix from The now basis City quarter first full were was Hospice services, our a quarter were of million. the or XXXX. year. X.X% $XXX.X partially These were last XX% revenues approximately the margin first care include XX results As in Other quarter $XX.X XX.X% or the by is reset the payroll our net points impacted taxes which revenues million This our care or the million in increase normal are year, $X.X

the statewide wage increase effective revenue year. from higher expense quarter, in in the stock-based the reimbursement expense Acquisition the higher the other quarter. per Chicago, COVID-XX While April million was skilled primarily on a of quarter net was was we $X.XX and negative first a The will of $X.XX, impact of the from mix a of and the that became in offset with income adjusted exclude impact COVID-XX of July share EBITDA a novo profile. X.X% increased XXXX the of slight beginning XXXX includes decrease share of $X.XX. compared for second which $X.XX, rate direct of margin G&A diluted XXXX, quarter X, per costs Adjusted $X.XX. the results in as G&A $XX.X of company's XX.X% this to increases, XX.X% revenue, first increase EBITDA G&A de for million XXXX. an of minimum still up to was Adjusted of of quarter XXXX. and adjusted additional increase benefit noncash XX% of following: first quarter offset the Illinois expense XX.X% X, net from in quarter restructuring the of quarter on expenses and the for Adjusted temporary the experienced for last X.X%, result by business first $XX.X The expenses. compensation partially XXXX first from slightly

noncash net first for of of compensation stock-based per share and acquisition adjusted of exclude of quarter costs the and Our XXXX $X.XX, results $X.XX de of $X.XX. $X.XX, expenses restructuring expenses novo other COVID-XX of

tax a by was for generated of rate our result quarter stock tax of first Our the compensation. XXXX XX.X% as excess an benefit

were the year we tax to full end our days be continue low XXXX, quarter consistent at to rate of the to quarter. the the For expect of in mid-XX% XX.X first with XXXX, range. the DSOs fourth

revenues we However, slower Aging the XXXX days as of XX the the of were primarily of of a quarter Department DSOs result Illinois the at first of timing as state. saw for tax in end payments

since $XX seen beginning government the in received increase assistance and an have second stimulus tax from in the and acceleration the million have payments With over we Illinois quarter, April. from revenues the federal coming in the of

of Act of quarter return million used totaled in City as part Queen by funding $XX.X received cash inclusive of Our $XX.X acquisition. operations million, Care the first net the

remarks be to the able questions. to with sheet, you acquisition and million ask of continued approximately in our to flows timing continue for had the net quarter. our cash of the and morning, strategy. of now March debt negatively cash being the open line we payroll Additionally, thank by balance in us. low normal $XXX.X under XX, million for With payments operator please this leverage your $XXX.X million, I'll impacted the bank our XXXX, This million revolver. $XXX.X availability concludes At company well-positioned prepared and $XX.X execute

[Operator Instructions].

Markets. with RBC Capital the Our first from line of Frank comes Morgan question

Appreciate in always curious, most, and think color the the the just the I'm you and I around worker sort thing improvement quarantine aside quarantine. labor issues the has Dirk. labor been about of worry

worse? any feel you're So strategies Or the considering about reopens? just better about or market sort feel how of you our economy world, new or this the thinking as there make that into do you post-COVID as we way are do today labor

said, to I statistics. we've And than I've we're rather in -- than have the But When We the the is doing we the the our being look business recruitment still have, turnover respect in When it's as have Brad. industry, pretty the a good. you the That environment all improved. the actually industry tell a that problem unfortunately, the got with April little I be. We're other. to we frankly, like since numbers here, would where would more field, recruitment, workers. labor, is This team little a I have looking higher unique mean, been trends, it at Yes. a time. better at you look it's challenging than than

refreshing the done working still unemployment there's direction. in updating headwinds are those think look of click more potential communities I out And work the national the and again, can keeping them job constantly to in also reopening. of like. efforts the think enticing job them. the of kind are some I we've local community forget employees really there. that ads on our recruitment on can't then trending -- boards, are creative about a doing and I pretty what lot strategies, good But right to a we utilizing kind make additional stressing both we employees know to being with Economies of numbers the

one as last it bigger overall, been Recruitment of know, our years. you the couple Frank, about we've of talked for And challenges. has

still to it's were on the what with And improve and to certainly as few go larger from months, will or we last a continue government, we've the are going back where environment. little and very -- to bit to that over to hire, ability year, if unemployment a next in mentioned, challenging then optimistic $XXX, month as while think really we federal seen see benefit start the last looking our you the recruit today, we X. was Brad I at the the

in today months we're our than So position a in a mind much few ago. we were better maybe

more a care switching I on And slant -- you. your maybe M&A, of Got the gears then health comments about market. guess, toward health home

of good what to see change the home Just But hospice Is do care recent valuations? driving there. home curious health know you mix? was announced. I health care? is relatively you shift it it just toward what there kind this want seeing you're a clinical your Or size

this is Frank, Brian. Yes,

our see that what think potential this pipeline, into think coming to seeing we to I we're coming more is out expected assets I in year just there. market

year, think a lot us I see expectations of activity that. think last of had we I didn't and lot see would really that a

So of of are market I had a now. to think, targets bolus coming that we kind potential actually

we've a of pipeline. that seen I So think our little in slant

our in focus markets. enhanced that all each in and think services legs I still our is personal And largely of care. clinical of they three stool

we segments little than just would today in think got the other pipeline health I I skilled currently. a our more, in say, home two

back. Got think the I G&A out, at then being on expense do an you. your off mix -- do line the at top able leverage picture, your to and line, to hop I your But least margin grows clinical change you in as G&A And see you guess, the not really still get finally, called give is opportunity much leverage. as I'll you some

our have we G&A additional our add continue some corporate care synergies as G&A, get especially well. of markets Yes, even see personal some where Rick, other leverage, but as we operations, and we we in these field in I to services think there should definitely

continue continued our as is expectation -- grow. that's we So to leverage

from comes question Markets. of Capital line Matt with the BMO Borsch next Our

the may the result how's in a out on that seeing a How not pipeline in you impacts. the that that the willingness could talk to personal out there. coming as M&A may Yes. of you're of opportunities Maybe or bit terms pandemic particular, of be more and just in sell care, that are has influenced what little -- number

look at lot is concentration marketplace. and we see is a There have at. going company. that it that point the some honestly, a there in them bigger the really why revolving for look personal not that of stabilize with to not the the been mean program. difficult we the been time, combination the have ones around state of market it where of it would our could problem see are us particular I We the direction a York -- reasons care, at, in already York New New are come Yes, and And at a have governor leaders that need or, take market the and a be this was operated, would out of quite focus Yes. to difficult to

very well been we It At and us, very in service to for that us, side, our interested also just of add on of personal the states time, want we're for -- those. look City lately, health XX% more we though, care. it's the We've any So at reached the always business, out operate, the expensive. Queen acquisitions honestly, with HPA to strengthen feel our been has have like acquire care in lines our of size hospice to home clinical to opportunities that. strategic seems to is with which this and point in some important we in continue

we payment our for with them to MCOs, with the start but not looking continue -- MCO we type relationships to road for of as situations, the only grow, partners. As down may look at look with look we

would Matt, add result of pandemic. say, We're one to just for that. just real we're And sale I influx as of to I really thing quick, a assets personal not not seeing, think care -- the

like the opportunities, think, you operate in kind that, a haven't temporary board. influx home flow. the In us, supportive seen services the I particularly and community-based a with we of done states and have and across with really job normal think rate good as but with an for And and of potential others. increases know, being I we all

said we in follow-up guess, correct for sorry, know facing there. my in maybe That improved And right New really the to there's theory, as it. funding of I be But you're there in it Got you makes or not reimbursement was can it just I alone all well. And sort not question, sense. just challenges if on the anticipated much now, in near-term is specifically environment. which because what the it the is here. York actually, It's here. sort partnership situation for I more catalyst isn't of in see a me and should, a environment I'm emerging but was apparently this wrong, question fiscal may has Dirk,

But answered more put have say on that? to you anything interested. You I'm it. if

Yes. Honestly, it's but the in thing home relates I way about to reimbursed been put more getting There's it not a would benefits this also it's provider. say very York funding we're is as changes it did from is that difficult other the is goes state New been disappointing. and supporting has when always It's the From they point forthcoming not, -- are those around long as get caregivers, it revolves reimbursed, budget, there's community-based support up of in as which our some the in get to things but market. money, to their the the as in wage states standpoint, the there minimum state is state care. increases. not time, as and in at very don't The federal excited

growth not into. dollars New time, but now, right point this going York, we're stronger market be at in be a again, it's in of to So additional that to we'd to put a love lot able

comes next from with Scott the of line Stephens. question Our Fidel

some Medicaid you you of could I in around you're care are enhanced actually any providers states opportunities you the on and evaluating funding what personal wanted opportunities of it question front? potentially the actually just just First like up -- And expansion funding more does separate M&A new to the coming opportunities. Matt's as for you? seeing the particular, that open guess, geographic piggyback states growth geographic think to in potential to that, question, on have Are for seem sort where and services. Interested through that's in seeing HCBS from, committing you're just delivering

opportunities so Scott, think we that -- looking I monies through not as around are that at And think rules Well, additional that coming that we these is at the have be The would is been there'll that funds be some finalized of to or are those to that. like. states have much and still something I and as will think federal with the problem do some clarified, the least I are rules the hope providers we arrive. government shared far as

later. that potentially states community increases rate to maybe for hope use increases clarification care. rather would use is those be could more in temporary. specifically there the can But XX% talked -- expand opportunities, out, We talked can match we is offerings case year. utilized that of that's funds that about believe as come So for than to do rules Potentially their it home Yes, out already we Medicaid and a around or they've monies some there's additional about. make rate happen it sooner

things that the money. around are with all federal discussing we these states So are various the the

actually But in of hearing you're more visibility Biden's guys in of that of Medicaid Biden's I hearing, but any on. anything, be that And of like to -- politically terms getting details side Got politically fundings of rates. these something as terms for bit way getting in realize what HCBS would the translating be that appropriate through feeling that. type bill, in support down part you if here, are our funding terms general in I worked second first around proposed spending? on just here types being used your yes, these it. obviously I in that that seem we're what similar interested be bill. going assume included deployed what the additional visibility into be boost how allowed billion you're on that are in would that of with into, be support getting this families be on how guess what that a little will would on And the actually of hearing would of to new maybe sort you're $XXX initiatives infrastructure of a and interested would darkness it's are on. in in for thoughts vein any one actually federal thoughts packages terms And then well to

Well, Yes. rest the from on Democrats the what Senate. and seem does the It both the least to at $XXX House quite are support the is President the of be, for side are. maybe there's we're and the hearing a not the -- the point, certainly, Republicans at as politically lot of as board democratic Democrats this billion of

detail little of today. little believe probably lot But consumers. there we that not what a to bill both end very or certainly do is letting out focused to needed. be will relates will that used to as part. it's on what being part of that we that this we there's out an remember, of believe it may again, care. But there's and about to We A there, that is We're up going waiting are or computer-based talk expanding for. it's very believe it's the And folks know be we this occur. do may grasp to going But lot think can hold those, important it access of list whether home we not So see. any for

to living we that be the make around To have And care handle who then the will that wages giving caregivers trying providing in there towards care. increased believe more a are, funds wage. of for that waiting and initiatives directed to be sure to So also, seems caregivers. fact, access list some

useful. what of thinking we're kind that's will So be that

space backdrop results And one it it. the pandemic But pretty some to one quarter. I sounds for able hospice the around me. Queen like Interested, then it quarter. in solid was the just month-on-month Got City know generally of throughout first headwinds was a difficult for last deliver the

as operationally, that Just glean interested to in able to terms able would some were of that of, some if they anything performance the share you were and they you into trends deliver in taking think market around were likely that market well. that to whether impute the

is Yes, Scott, this Brad.

ILS facilities. that thing they keep process. was density allowed really to showed are On that was in me business, they think those to It demonstrated ALS I very the very mean, impressed the have the integration the we're important. ability particularly and the I grow in And to Queen having City, access that one service during the fact that with them

I probably they really pair you're goes any that there's to providers, -- good in taking suspect apt in if but facilities, type stay But think of a going ones really of we more market some having pandemic, that Mexico. share we done shutdown numbers, in the the during be market density have markets. or pretty to share we're it think haven't I to job list the facilities the of probably I those the tracked in show

Our the Tanquilut next comes question from line Jefferies. Brian with of

Or to that game is like seeing, turn the seeing Thanks And for for you long in need recovery you. question We're time. business a so my happened? you've merely challenge waiting post-COVID? mean, all been of for a the I for hospice having this Dirk, to hospice headwind got far. this around? obviously, the broad-based do you waiting color guess, out kind a of I in that that of the recovery are business. space just or provider a How as do what

sorry, A stay not Well, part access. the lot go we've we've talked the sense of And of median it of has SNFs. -- do patients stay, also assisted of lot longer the come have times issue we've only length -- length with that a what living length happened of the facilities, sure seen there. medium in those stay, of but seen, the from fact of seen I'm facilities around not the down, we a lot as to

now admissions we're have is So of shorter a length acute happened that facilities, those to more care skewed the stay. getting of what's it's

to We that this of the the through. to pandemic that's become couple as that's is that the roll hospice see we of normal. One, a the I care discussion may we return believe and families might We census there more the a that we're push home, a they're of the and believe things family as homes a know don't vaccination less that I normal natural progression in something probably able working around longer. have be issue, apologize. the also that pandemic, phone level do happen. take believe to to pandemic, would of member to they're side. through and maybe more hoping if an the pandemic, return to because nursing that that see continue on delayed their But have believe the from -- I'll We system try other during

normal our improvement So next We're overall length at leading team. return of the months. industry can working towards start medium try some the to few the medium for of should looking do length We're mid-XXs. with more drive length the over us, is we're we -- back we that growth of as stay itself, not places that the just length stopping there going and over remainder of sales stay. saying, state year, around additional seeing through level to of of I believe an But in and ADC

parts And on state think different different reimbursement or then, reimbursements you changing. the it. when Got that rates the about Brian, are moving

delay in and also between the wages Illinois, sequester July. So the increase in

kind just through of sequential your you mind the numbers, like estimates If from QX. don't of walking changes us like

mean, I sequentially. at where Yes. look let's

to During benefit the non-Chicago offset Illinois by rate the workers. which you'll in from in your Brian, the wages our see partially to going is QX, the increase be point, increase,

margin some be there So be there. It'll helpful. will

see our So margin it'll move in you QX. up from slightly gross where

see so impact Chicago or won't points referenced we we'll have see as You Dirk don't comments, have increase reduction in QX so sequester, lot and wage as conversations out in benefiting of we're if minimum And pull in of kind other then his in the able XX you and QX, like of the to unless and through offset basis of real are you'll reimbursement to an possible. forward, changes until normal a offset year. there July that well. any is see from there, think kind And that's as I long as we that's something that end that get Illinois folks that

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

valuations, funding, also the and federal I industry from being that's resulting for more care -- about setting. funding federal know maybe you I wondering in up in at you as First, home if a increased M&A just opportunities. done just look talked an health driving perspective, the heightened was of focus

lot our care more home so. for services, Mitra, a even appreciation I pandemic, definitely through especially of there's the think

a was I think prior there. to value obviously, proposition COVID there

a also lot of think to type and and choice homes. pandemic in you I environment through their COVID, be reaction a see people's preference to

think in particularly more clinical those seen, multiples in space, driving there's year. climb So of proves last think, through more hospice that's out, sound definitely and I I services we've of appreciation an the the

care have we've we target ones personal multiples the think that that consistent. seen, I typically been pretty would

We in multiples seen movement those haven't a lot point. this at of

have potential Okay. if and I some you That's got you great. for the of as that update growth maybe And was there. then on of was seen a nice Medicare implementing things I wondering pandemic delayed a result an as et Advantage, opportunity in cetera. programs, know terms

seeing if any wondering environment here. Just in you're the pickup

at out Mitra, that and respect certainly discussions. this other are we're possibilities, various of in actively implemented engaged With several increased arrangements Brad. or to projects Medicare is discussion those We've and it, there Advantage value-based we're seeing around got implementation. stages

benefit on there's federal industry. term, about There's a for discussion certainly a just a lot long the a think tailwind level recently. I nice -- it's long-term So the more

of think opportunities. there's I So lots

a in see away meaningful further there. I of we're projects will numbers the pretty demonstrate still, that that couple near think the can piece is starting that services provide. term, the interesting But savings we're seeing think as real some years said, in participating our we I any think MA I from to

just finally, vaccines rollout, the then cetera. on the et And and

from been you internally individuals that employees if if especially caregivers, an cases as wanting terms heard health to the et Just relates -- wondering arena. of cetera, has your it the cetera? caregivers, we've in vaccine, a employees, of for not in of number and your et care Curious issue

Yes.

front, we've made progress. good vaccine the On

behind a we're be our look vaccinated. is the the our a -- more not as but of vaccine. little as segment, But along far available bit fully pace time. it's probably skilled XX% just more quite overall. you geographic there. availability division skill part level, differences was because not Home personal XX% of It's the we'd some When to probably sectors, as to just lagging in the Hospice is care -- health think is regional the about at level. that is under I just not that widely the as mainly like at in dispersion in access there's of

schedule have I the think appointments. don't now what's encouraging is that to you

some there vaccine, the big to improvement good vaccinated. of suspect a obtaining can pretty ease traction the show be up going I You start think just seeing get and because I And driver. that is there we'll just the

Instructions]. [Operator

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

there's terms in access living on way us impact a living, vaccinations then as assisted wondering try to your was independent your in give maybe New quantify I of system sense could the have just access. facility a if Mexico that And improved for you approved? restrictions how has

the we incrementally. was ILS in near-term ALS SNFs. have actually significant were seen Certainly, at improved reduction trends, and really look our when and a we Yes. impacted in those have we pretty the What where just admission is the SNF admissions

admission robust. some was in see New traction to starting Mexico we're very volume Overall, there. So even

keep open since late where starting of they perspective of to just the lot facilities disappointed look said, just get now So facilities down you early and want we was last locking are they've we from when at that think the Mexico. started kind really mean were I New New we we're that admission certainly, down. in not in weren't It's stage. on I of Mexico. ILS, a admission And be. On it mind, probably locking and to was locked volumes starting year up of volume. optimism of reopen. the one down ALS some more stay being are pandemic. in to to it states kind more And But in throughout where there's those That

of at all the I related did to And our think if look markets grow. also our you hospice, we markets -- of majority

market, see. more having our being bit would than difficulty a did you second being Mexico, of little and New this a So an locked others have with more effect largest little that bit like down to

the with and just integration announcement intra-quarter wanted CellTrak function. about go Homebase made Homecare EVV And Okay. I you back actually to to then

that said it Just tool Just be that'd for in look what early project? be interesting that? exclusive an of to roll would what you out curious sounds the we'll What curious plans Ultimately, like -- will kind are like. Addus? potentially. know think It contributing you to product you I XXXX. are the

it Yes. Homecare with is Well, off, true a CellTrak. and first Homebase partnership

the are software investing creation. is into investing dollars time expertise. We not we and What are

today probably and is we things able of One care do Homecare in understand as Homebase top are run we our allow from some country, us have we to business we with output type the clinical to input to properly, at we that need the the access what providers one the have the of side. that and on data systems personal -- the a were least, of need company, to we,

that to and they data patient same of out have we of that way record not level our our company while the exclusive, be you through to software able to able that it like get to there, services, would regardless goal, have our hospice the see the we in will personal So system be to really going how care be And are care and as of will all because that. be decide what partnership we're operates. would company expect,

So have we Homecare Homebases today. with the that's aspect really

kind would Obviously a Dirk, dig mid-XXs. lot of the And just do take Just normalized there, how kind that Okay. will an going you to a think made parts length quarter back of maybe of time of comment just a to then, X sort long be X to you -- to but about, stay? moving it let's back or period? get impact of

now up April. gone days to we've from Well, in XX XX

quarter to fourth To a back which mid-XXs, there. probably the like So sound us it see percentage, this a year, as to we've lot days, takes going the get it's and third get grown it you're doesn't to nice of X move. a while

length our the would XX we where number. that be, to medium XXXX, So it expect we believe by closer mid- end stay should you of which is to see of

further are MDirk any over the closing remarks. no Allison now turn There for call questions. I will to

a earnings interest week. to for hope you their have part want of today Thank I operator. you, in being for our everyone and Thank great call. thank Addus We you.

call. Thank you. conference participating. Thank today's you for This concludes

disconnect. now may You