Addus HomeCare
A home care services provider offering personal care and hospice services to elderly and disabled clients.
PE-OWNED
Acquired by Ares Management2009-03-01
What Made It Great
Home-based care services enabling aging in place
What PE Will Likely Do
Reductions in nursing staff and a shift towards less-qualified home health aides, leading to lower-quality care and longer wait times for clients
Attempts to upcod billing to maximize reimbursements, potentially leading to inaccurate coding and inappropriate services being provided
Elimination of unprofitable but essential services like specialized care for clients with complex needs or in remote areas, reducing access to comprehensive home care
Extraction of large management and consulting fees, diverting resources away from direct patient care and services
Expected Timeline
“0 to 6 months months”
Announcements of 'efficiency' programs and leadership changes, setting the stage for upcoming staffing and service cuts
“6 to 12 months months”
Gradual reductions in nursing staff and shifts towards lower-cost home health aides, leading to early declines in care quality
“12 to 24 months months”
Noticeable declines in service quality, with longer wait times, more frequent missed appointments, and reduced availability of specialized services
“24 to 36 months months”
Potential closure of unprofitable service lines, leading to reduced access to comprehensive home care for vulnerable elderly and disabled clients
“36+ months months”
Possible bankruptcy or fire sale to another operator, further disrupting continuity of care for Addus HomeCare's clients
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Monitor any changes in nursing staff, service availability, and billing practices at Addus HomeCare facilities, and advocate for maintaining high-quality, comprehensive home care services
Be aware of potential service disruptions or reductions in care, and be prepared to switch to alternative home care providers if necessary to ensure your loved ones receive the care they need
Engage with local community organizations and policymakers to raise awareness of the potential negative impacts of private equity ownership on essential healthcare services
Alternatives
Community-focused healthcare
Integrated managed care consortium