Addus CEO: Moratorium Has Little To No Impact On Growth, Valuations – Image for illustrative purposes only (Image credits: Pixabay)
Addus HomeCare Corporation continues to advance its acquisition plans without interruption from the new federal moratorium on home health Medicare enrollment. The company’s heavy emphasis on personal care services and established acquisition channels sets it apart from providers that rely on starting new operations from scratch. Chairman and CEO Dirk Allison made the assessment during remarks at the RBC Capital Markets 2026 Global Healthcare Conference, noting that the enrollment freeze targets only certain segments and leaves Addus’ core approach untouched.
Personal Care Focus Shields Core Operations
The Centers for Medicare & Medicaid Services moratorium applies strictly to home health and hospice providers seeking new Medicare enrollment. Addus derives the majority of its revenue from personal care services, a segment outside the scope of the freeze. This distinction means the company can continue buying smaller personal care operations and integrating them without regulatory hurdles tied to the moratorium.
Allison emphasized that Addus has never pursued de novo growth in its clinical lines. Instead, the firm has relied on mergers and acquisitions paired with organic expansion. That long-standing model removes any direct exposure to the enrollment restrictions now facing other home health operators.
Acquisition Pipeline Stays Active
Addus currently holds several deals in advanced stages, including one or two personal care transactions sized similarly to its earlier $350 million purchase of Gentiva’s personal care assets. The company has maintained a clean balance sheet, allowing it to fund larger purchases quickly through its existing credit line on an all-cash basis.
Recent activity includes the acquisition of Indiana-based HomeCourt Home Care and a signed agreement for another comparable personal care provider in the same state. Allison noted that few large personal care companies possess the debt capacity to pursue deals of this scale at present, positioning Addus as a leading buyer in the space.
Valuations Adjust While Compliance Edge Grows
Multiples for personal care transactions have declined since the Gentiva deal closed at roughly 11 to 11.5 times earnings. Current opportunities are expected to close at sub-double-digit valuations, partly reflecting Addus’ own lower trading multiple as the largest public pure-play agency operator in the sector.
Allison views the Centers for Medicare & Medicaid Services focus on fraud, waste, and abuse as ultimately positive for established providers. Companies that invest millions annually in compliance programs become more attractive to payers seeking reliable partners, strengthening Addus’ negotiating position over time.
Industry Context and Limited Ripple Effects
Other home health executives have described the moratorium as a constraint on growth options and potential access to care. Addus’ experience stands in contrast, aligning with comments from Aveanna CEO Jeff Shaner, who also projected zero impact on his organization.
The company operates 263 locations across 24 states and serves roughly 62,750 patients and consumers. Potential home health acquisitions remain feasible provided target companies meet the existing 36-month rule, further insulating Addus from the enrollment pause.
With its balance sheet ready and acquisition targets in motion, Addus appears positioned to maintain momentum regardless of how long the current moratorium remains in place.
