Addus Now Headquartered in Texas
One of the nation’s largest providers of in-home care services has completed its change in corporate headquarters—and has an updated look to boot. Addus HomeCare Corporation (Nasdaq: ADUS) has officially switched its corporate address from the Chicago suburb of Downers Grove, Illinois, to Frisco, Texas.
The company, which operated 111 locations across 24 states as of March 31, 2017, quietly made the change without issuing a formal press release of the completion of its change in headquarters, but did announce it updated its logo, mission statement and values in April during a first quarter 2017 earnings call.
The change coincides with Addus’ restructuring over the last few years, including a major executive shakeup at the start of 2016, when it named Dirk Allison its new CEO and replaced long-time leader Mark Heaney. Addus has since continued to make changes across its c-suite, including the recent appointment of Brad Bickham as executive vice president and COO and Brian Hoff’s appointment as CFO in May 2016.
Allison, who has roughly 30 years of experience in health care, has a long history in the Dallas area, including leading several companies there and attending the University of Dallas. However, there is no official indication from the company that the move is due to Allison’s Texas ties. Company representatives reached on Thursday did not explain the rationale behind the move to HHCN.
Addus, which was founded in Illinois in 1979, still will have a large share of its revenues coming from the Land of Lincoln: 53.6% of its net service revenue from operations came from Illinois in 2016. The company does not operate any locations in Texas.
The move from Illinois comes after the company stated in numerous consecutive quarterly earnings calls that it would close its contact center there. The company has steadily moved corporate operations and executives to the Lone Star State in the time since Allison’s appointment. Addus assumed occupancy of a new office space in Frisco in July 2016, according to SEC filings.
The Illinois address remains as a “support” location to Addus’ main headquarters in Frisco, Texas, Executive Vice President and Chief Development Officer Darby Anderson confirmed to Home Health Care News.
The official move was initiated during the Fall of 2016 and recently completed “within the last few weeks,” according to an Addus representative who answered the phone at the corporate office on Thursday and confirmed the company’s location with HHCN.
“We lease approximately 59,000 and 12,000 square feet of office space in Downers Grove, Illinois, and Frisco, Texas, which together serve as our corporate headquarters,” an SEC filing dated March 15, 2017 states. “In 2016, the contact center contained within the Downers Grove corporate headquarters closed. As a result, approximately 21,000 square feet of the office space in Downers Grove is unused and related lease payments are included in restructuring and other expenses.”
In addition to major corporate changes, the completion of the move to Texas as the company’s headquarters comes after Addus has experienced numerous issues in Illinois related to the state’s budget crisis.
Illinois did not pay Addus Medicaid reimbursements for several months, and the company finally received more than $40 million in Medicaid payments from the state, CEO Dirk Allison said during the company’s first quarter 2017 earnings call. And Addus expects further delays in these receivables.
Addus has also indicated that it could be increasing its service lines beyond personal care services, expanding to home health and hospice. Addus sold its adult day services centers in Illinois, effective March 1, 2017, for approximately $2.4 million in proceeds, according to an SEC filing.
Addus is not the only home-based services company to undergo a makeover; Amedisys Inc. (NasdaQ: AMED) also recently updated its website and logo.
Written by Amy Baxter