Addus CEO Weighs in on EVV, Managed Care Organizations

Following the overhaul of its C suite and positive end to 2016, one of the largest personal care providers in the country is running full force to stay ahead of its competition this year.

Due to the size of Addus HomeCare (Nasdaq: ADUS), the company realizes it has a leg up against the competition and could drive organic growth this year through the implementation of electronic visit verification (EVV), as well as shifting how it deals with managed care organizations (MCOs) and referrals, CEO Dirk Allison shared at the Oppenheimer & Co. Healthcare Conference in New York City Tuesday.

The Downers Grove, Illinois-based company believes there is increased pressure on the acquisition environment because of the cost and complexity of operations that stem from various regulations and policies, such as the EVV mandate.


The EVV mandate was a technology requirement of 21st Century Cures Act passed at the end of President Barack Obama’s second term. Thanks to Addus’ scale, the company believes it has advantages to meet these requirements.

“EVV takes time, money and resources from the company, and since there is no national selection of these providers, we have had the ability to work directly with a number of companies to provide electronic billing systems,” Allison said. “Some of the smaller companies that serve our patients can’t do that because they don’t have the resources or capital to invest.”

This advantage is an opportunity for the company to drive consolidation, Allison added.


New View on Referrals, MCOs

Two other changes Addus is making to drive growth are increasing interaction with referral sources and putting more emphasis on MCOs than in previous years.

Set into action last year, the company changed some aspects of how agency directors interact with referral sources.

“We believe we’ve seen some positive results from this and giving them [agency directors] more time to actually be out with the referral source and talk to them about the services we provide,” said Allison.

Additionally, managed care growth will be a large focus in the future. To do so, the company hired three individuals who will strictly work in the managed care environment.

“They are not only working with providers we have today, but if we can work with other providers in other states that can help us have an aspect of growth,” Allison shared. “If we can go in and sign agreements with managed care providers, it give us access to their patient care base, and [I] think that’s a real plus for both Addus as well as the MCO.”

The company will continue to put resources behind the initiative moving forward, Allison added.

Written by Alana Stramowski

Companies featured in this article: