The leaders of Addus Homecare Corp. (Nasdaq: ADUS) imagine that no matter who received the current presidential election, their firm can be properly arrange for the longer term. That mentioned, the Medicaid Entry Rule might now go away as a consequence of Donald Trump's victory and the 80-20 provision.

“We didn't actually care who received the election as a result of traditionally we've finished properly, whether or not it's a Democratic or a Republican administration,” Addus CEO Dirk Allison mentioned Tuesday at a convention hosted by funding financial institution Stephens .

Broadly talking, the Medicaid Entry Rule was put ahead by the Facilities for Medicare & Medicaid Providers (CMS) to create extra transparency in residence and community-based providers (HCBS). Nonetheless, it additionally included the 80-20 provision, which might have mandated that a specific amount of reimbursement for HCBS go to direct care suppliers.

Though suppliers usually thought the Medicaid Entry Rule was an excellent coverage, most strongly objected to the concept of ​​wage mandates, primarily due to the massive variations in HCBS by state.

“Our authorities relations people have been working with our numerous associations as we've been speaking to the Trump administration,” Allison mentioned. “What we perceive now’s that in the course of the first yr of his administration, we imagine he’ll get rid of the Medicaid Entry Rule, which is what we anticipated. That, I believe, is unquestionably a tailwind for us.”

Addus HomeCare, primarily based in Frisco, Texas, at the moment offers residence well being, residence care and hospice providers to greater than 48,500 shoppers via 214 areas in 22 states.

The overwhelming majority of the corporate's income comes from HCBS, or private care providers.

“Whether or not it stayed or not, it will work for us and it received't change what we do,” Allison continued. “However I believe it might change some perceptions, particularly perhaps with a few of the new shareholders which have are available during the last yr, in comparison with a few of the individuals who have been with us for a very long time and who’ve had time to speak to us and perceive our emotions . So general, I believe the potential elimination of the Medicaid Entry Rule may be very stable.

One potential headwind from one other Trump administration that Allison famous was the extra optimistic view of Medicare Benefit (MA).

MA plans are a thorn within the facet of residence well being suppliers and customarily pay a lot much less for residence well being providers than conventional Medicare.

A tighter regulatory and pricing surroundings has given residence care suppliers some extra negotiating energy relating to plans lately.

“It seems the Trump administration has spoken extra favorably in regards to the Medicare Benefit gamers, which might considerably impression residence well being,” Allison mentioned. “Managed care, they don't pay as a lot as a price for service.”

Whereas residence care is a crucial a part of Addus' progress technique and value-based care plan within the coming years, it nonetheless represents a small enterprise section for the corporate.

Going ahead, private care may have a fair larger slice of Addus' pie as the corporate goals to shut the deal for Gentiva's private care belongings by the top of the yr.

However these two areas – residence care and private care – will stay the main target of mergers and acquisitions for the corporate for the foreseeable future. For probably the most half, hospice can be on the again burner.

“Including complementary medical providers will doubtless open up extra alternatives for us within the expert residence care area in Texas and another markets the place we at the moment shouldn’t have medical providers,” mentioned Addus CFO Brian Poff. 'Largely it is going to [be] private care and residential care. I believe hospice, on the proper worth in the best markets, is one thing we’re nonetheless open to, however most likely a step past private care and residential care as a precedence.”

Addus leaders additionally mentioned they count on mergers and acquisitions usually to extend in 2025.