Good day, and welcome to the Addus HomeCare's Third Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Dru Anderson. Please go ahead.

Thank you. Good morning and welcome to the Addus HomeCare Corporation third quarter 2024 earnings conference call. Today's call is being recorded. To the extent, any non-GAAP financial measure is discussed in today's call, you will also find a reconciliation of that measure to the most directly comparable financial measure calculated according to GAAP by going to the company's website and reviewing yesterday's news release. This conference call may also contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements, among others, regarding Addus expected quarterly and annual financial performance for 2024 or beyond. For this purpose, any statements made during this call that are not statements of historical fact, may be deemed to be forward-looking statements. Without limiting the foregoing, discussions of forecasts, estimates, targets, plans, beliefs, expectations, and the like are intended to identify forward-looking statements. You are hereby cautioned that these statements may be affected by important factors, among others, set forth in Addus filings with the Securities and Exchange Commission and in its third quarter 2024 news release. Consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. I would now like to turn the call over to the company's Chairman and Chief Executive Officer, Mr. Dirk Allison. Please go ahead, sir.

Thank you, Dru. Good morning and welcome to our 2024 third quarter earnings call. With me today are Brian Poff, our Chief Financial Officer; Brad Bickham, our President and Chief Operating Officer. As we do on each of our quarterly calls, I'll begin with a few overall comments and then Brian will discuss the third quarter results in more detail. Following our comments, the three of us would be happy to respond to any questions. As we announced yesterday, our total revenue for the third quarter of 2024 was $289.8 million, an increase of 7%, as compared to $270.7 million for the third quarter of 2023. This revenue growth resulted in adjusted earnings per share of $1.30 as compared to adjusted earnings per share for the third quarter of 2023 of $1.15, an increase of 13%. Our adjusted EBITDA was $34.3 million compared to $30.9 million for the third quarter of 2023, an increase of 11.1%. During the third quarter of 2024, we continued to experience consistent cash flows. As of the end of the third quarter of 2024, we had cash on hand of approximately $223 million. This cash, along with our line of credit, will be used to fund our previously announced acquisition of the Gentiva Personal Care operation. Once this transaction is closed, we will remain in a conservative leverage position, allowing us to continue to evaluate larger strategic acquisition opportunities. With respect to our ongoing acquisition activities, I'd like to provide an update on the Gentiva transaction we announced on June 10th of this year. Recapping our strategy, we believe our personal care segment benefits from both scale and broad graphic coverage in the states where we operate. This is particularly true in managed Medicaid states and as a result of the final Medicaid access rule,…

Thank you, Dirk and good morning everyone. Our third quarter financial results reflect the continued momentum in our business throughout this year. With solid execution, we delivered impressive 7% top line growth and an 11% increase in adjusted EBITDA compared with the third quarter last year. Driven primarily by favorable reimbursement trends, our Personal Care segment had another impressive performance with solid 6.8% organic revenue growth over the same period last year. This growth trend has consistently tracked above our normal expected range of 3% to 5% this year as we have continued to see strong hiring trends and rate support. With the upcoming statewide reimbursement increase in Illinois scheduled for January 1st, 2025, we expect our same-store revenues to remain toward the high end of our normal expected range for the next several quarters. As a reminder, we anticipate the Illinois rate increase to generate approximately $23 million in annualized revenue, with a margin in the low 20s, consistent with the 77% rule in the state. As we have discussed previously, we anticipated that the divestiture of our New York operations may qualify for sale treatment under GAAP prior to closing. Effective on October 1, 2024, the requirements for qualification have been met, and the results of our New York operations will no longer be included in our consolidated financial results beginning in the fourth quarter of 2024. In the third quarter of 2024, our New York operations contributed $21.2 million in revenues, which were not included in our same-store numbers, and no EBITDA contribution. With the majority of new clients being directed to Bayer over the past few months, we have seen some degradation in our top line revenues, client counts and hours, but with no earnings impact. On the Clinical side, our third quarter results included the…

We will now begin the question-and-answer session. [Operator Instructions] The first question comes from Brian Tanquilut with Jefferies. Please go ahead.

Hey good morning and congrats on the quarter. Maybe Brian, just to clarify your comments on margin direction sequentially. Am I right in thinking it should be up about 190 basis points on gross margin between hospice and the divestiture? And then maybe also going forward, how should we be thinking about G&A and just the margins overall?

Yes, that's correct, Brian. Combined between the two, it will be 150 from the divestiture, another 40 on top of that from the hospice. And on the gross margin line, that is accurate. I think moving ahead, we're going to see some margin expansion, bottom-line, a net 90 basis points from just New York. You'll see some impact positively from hospice as well fall to the bottom line in Q4. We'll see our normal rate increases in hospice will offset some of that toward the end of Q1, when we give those merits. But I think with New York being out of our numbers going forward, you should see some expansion in our margin profile.

Got it. And then maybe, Dirk, as I think about the Gentiva acquisition, it looks like you're expecting it to close here pretty soon. So number one, how are you thinking about your ability to -- as you've looked at that asset further through this process, just the ability to grow that business going forward and maybe drive some margin? And then at the same time, where you stand in terms of your appetite or willingness or ability to do further acquisitions as you integrate Gentiva?

Yes, Brian. One of the things we've learned by having these months to work together with the Gentiva Personal Care service team is really good to appreciate what they've done and how they built their business over the last few years. We're excited about the fact that now then coming on with a company that is truly focused on personal care services and has the history that Addus does that our operations team, along with their operations team, will be able to drive growth. And Texas is a great state. As you know, it's about 80% plus of the business we're acquiring. So we're very excited about our ability not only to bring it on appropriately, but also about the ability that we can continue to look at all the markets in which they operate and get them in a growth profile which is very similar to ours, which remains our target of 3% to 5% same-store growth over the next few years. As it relates to our appetite, one of the things we did following the acquisition of the Gentiva Personal Care service was go out and raise some equity to clean up our balance sheet to make sure we were prepared going forward. And so today, as we said, Brian mentioned, over $200 million in cash, we've got the new $650 million line of credit with expansion capabilities there for a deal. And so our appetite remains strong. And obviously, as we've gotten larger, certainly looking at some of the larger opportunities that may arise is interesting to us. And will continue to be interesting at us. I think our key will looking at deals that meet our strategic direction in which we're driving the company and also making sure that it can be accretive and positive to our shareholders. And so from that standpoint, we are still looking. We are still excited, but we do have that criteria as we look at deals.

Awesome. Thank you, Dirk.

The next question comes from Joanna Gajuk with Bank of America. Please go ahead. Joanna, your line is open. You may ask your question.

Hello, can you hear me now. Hello?

Hello, Joanna, you can answer your question.

Hi. This is Joanna Gajuk here. Thank you so much for taking the question. So just a follow-up first on the organic census growth. You talk about 0.6% increase and you mentioned where the termination process being a headwind there. But I guess, was there anything else, I guess, to call out what about the New York market being a headwind there? And you also said you expect this to, I guess, reaccelerate to 2% growth, I guess, heading into next year for guiding census growth. So can you give us a sense what gives you the confidence you can go to 2%? Thank you.

Hey, Joanna, this is Brad. When you look at the New York, it's actually carved out of our same-store growth numbers. So we've already kind of cleaned that up. Look at that number. If you think through the redetermination process, there's certainly been a lot of noise about that this year. I think CMS came out with some guidance, probably in the last 30, 45 days, to try to help states with how they're handling re-determinations. Probably would have been better, if they would have given that out about six months ago. I think it might have helped the process a little bit. But what we're seeing is, I think the states that we operate in are largely done, and I think will be wrapped up by the end of Q4. And what we've seen there is, one, we've lost a few clients, nothing material. It's really been more impactful, honestly, on getting new clients through the system. If you think about on the state side going through this process, that was a lot of added work. They didn't have additional staff. So the staff is doing new admissions into the program. Same staff that was doing re-determinations. And so you can still see a little more -- a little bumpiness in the referrals week-to-week. I think that's going to steadily get better. So I think -- optimistic that we kind of get back to more regular cadence going into 2025, where I think that, as Dirk alluded to, kind of a 2% target on same-store hours is certainly achievable.

Thank you. And I guess a similar question on hospice. You mentioned the admissions were down, but I guess census still grew because length of stay keeps improving, but I guess admission were disappointing in the quarter. And sounds like you're making some changes in that segment. So can you talk about how we should think about the progression into next year when it comes to hospices growth? Thank you.

Yeah. We did -- we've made some leadership changes on the hospice side, primarily in -- a little bit in some of the hospice positions, but also in the sales leadership positions. We've made some pretty significant changes there. I'm really optimistic about the team that we have on board. Really, the sales leader change out middle of September. So he's just now kind of getting his feet wet. He's been out and met with all the teams. I realize that there's a lot of potential out there for us. We're going through sales training over the next couple of months to just kind of reeducate and work with our on the ground sales team. So optimistic that though we'll be back into, I think, that kind of mid- to high single digits on a growth rate with admission volume increasing.

Great. Thank you so much.

The next question comes from Tao Qiu with Macquarie. Please go ahead.

Thank you. Good morning. I appreciate the comments on Gentiva. Any comment you can provide regarding the reimbursement environment in Missouri and North Carolina, the two new states you're getting to? Are these managed Medicaid states as well? Any initial thoughts on the potential EPS accretion from the transaction for 2025? Thank you.

Yeah. So if you look at the new states that we're entering into, North Carolina and Missouri, reimbursement environment in Missouri, I think is solid. It was kind of consistent with what we see in our other markets. Now, the North Carolina book of business is actually a little different. It's actually case management, very small good margin business, but it actually gives us entree into North Carolina and a little bit of different kind of business other than traditional kind of personal care. But again, very small piece of the total pie, but certainly interesting and has a good margin business with it.

Yes. Any comment on the EPS accretion? I know you're not providing guidance for 2025, just any high level insight you can provide there would be appreciated.

Yeah. Tao, this is Brian. I think we definitely expect it to be accretive to our numbers. I think we've talked about opportunities. Probably 12 to 18 months out for some additional synergies as well that I think is going to be helpful, primarily most of those coming from the system conversion. Currently, the system they're on today will convert to homecare homebase once we get that set up, but that's probably going to be sometime a little bit down the road. So probably not at a high level out of the gate, but definitely will be accretive on EPS initially.

Got you. My follow-up is about some of the policy proposals in the spirit of the election day here. Could you talk about the potential impact of the proposed federal minimum wage increase, particularly as it pertains to the Texas market, which follows the federal rate? And also, there's been a lot of discussion about the Medicare -- potential Medicare expansion to cover personal care services. If that were to become the reality, what changes you will make to your long-term strategy? I think I heard you mention the interesting additional investment in home health. Does Harris' proposal make you more likely to accelerate investment in clinical businesses?

Yes. I think when you look at the kind of the election, minimum wage certainly is something that we're always monitoring. Texas does follow the federal rate. But keep in mind, I mean, we're paying way about the federal rate -- will be paid away by the federal rate in Texas, as well as in the other states that we operate. So, I don't see that as being material at this time, but there's a lot to flesh out on what those proposals might be. And certainly, the election, it seems to be trending towards more of a split government. So I'm not sure how much of some of the proposals for either candidate will get through. With respect to VP Harris' comments about expanding the benefit to Medicare, very positive. I mean, it's great that there's great that there's not a lot of detail around it, but certainly to see discussions along those lines. I think we think real opportunity and benefit to expanding their services to the Medicare population. I think we've shown that it's certainly where people want to be taken care of is also the lower cost setting, so certainly an interesting proposal.

Yes. I think also, let me add to Brad's comments. One of the great things about where we sit with our company is that regardless of which party wins the presidential election, I think we have benefits on both sides. The Republican Democrats have come out. And Harris has said that she supports expanding elderly care, which is very exciting, although not a lot of specifics at this point. But at the same time, then President Trump came out and also mentioned supporting elderly care through tax means. And so for us, we're just excited that both sides have looked at what we do, we being at us in the industry in which we operate, taking care of the elderly and disabled population in their home, and both feel supportive of that. So we believe we're in good shape regardless of how the election ends up tonight.

Great. Thank you guys.

The next question comes from Scott Fidel with Stephens. Please go ahead.

Hi. Thanks. Good morning. First question, just wanted to make sure we've got all the moving pieces for modeling operating cash flow sequentially in the fourth quarter. Brian, maybe if you could just sort of walk us through those. So we've got -- I know the $9.7 million sort of benefit again in 3Q, that reverses. But maybe you could walk us through as well, any other moving pieces to operating cash flow in the fourth quarter?

Yes, Scott. Outside of that, that's going to be the big piece sequentially, Q3 into Q4. I think even without that benefit in Q3, it was still a very strong cash flow quarter for us, which we expected, I think, largely kind of just benefiting from working cap changes. So we were down a little bit in Q2. I think if you look at our DSOs for ADO [ph] specifically, just their payment cycle, they were a very strong payer for us in Q3. And there's always a little bit of timing difference between when we get their payments kind of quarter-to-quarter. So nothing I would kind of call out or say, hey, should be definite material impacts into Q4 outside of the 9.7 reversing. So you are going to see a little bit lower as a result of that in Q4, but nothing else that I would flag out that, which should be unusual.

Okay, got it. And then just my follow-up question, just curious on looking out to 2025, any additional contracts that you're implementing in terms of your preferred payer strategy on home health and maximizing the margin opportunity on the MA business? And then also curious, there's been quite a bit of discussion that I would say has probably increased over the last several quarters, just around payer friction with providers and sort of gumming up the works, I guess, a little bit around approvals and prior authorizations. And clearly, that's been a lot, I would say, sort of heavily focused on the acute care hospitals. But I'm just curious, as you look at your three lines of business in terms of the posture of payers, managed care payers, whether you've seen any changes from them around approvals and denials and just sort of level of friction? Thanks.

Yeah. I think if you look at on the payer side, I mean, let's start with PCS, our largest business. We really haven't seen any noticeable changes in our relationships with payers. Other than, frankly, with the Gentiva acquisition, certainly a lot more interest in talking to us about looking at some creative value-based type of arrangement. So I think there's certainly opportunities to work with those payers. But good relationships on the personal care side, they've also offered to kind of help us on the skills side to making contact. So when you switch over to hospice, there's not a lot of payer activity there. It's pretty minimal. Home health, we have had and are continuing to have ongoing discussions. We've had some wins on the payer front. Typically, it's just really increasing the per visit rates. We haven't had as much success moving to full episodic payments with some of the larger payers or on a national basis. But certainly, we'll continue to pursue that in 2025. And certainly, if we can get some quick wins, just a base increase in rates, per visit rates, we'll start there, but we'll certainly be continuing to push for episodic, or some case rates with those payers. Really haven't seen a lot on the prior authorizations with MA players as far as any changes in the posturing there. So I think it really has not been that big of a factor for us.

Okay, great. Thanks.

Next question comes from Jared Haase with William Blair. Please go ahead.

Good morning, and thanks for taking the questions. I appreciate the commentary in the prepared remarks on the outlook for state budget, maybe I'll just follow-up to that. There's been a lot of noise recently from the larger, I guess, managed Medicaid payers on the unfavorable rates that they're currently getting from states relative to risk pools after redeterminations. I'm curious as kind of states update the rates that they're paying for managed Medicaid, does that factor in at all to your outlook for state budgets? And I'm wondering if that has any impact on, I guess, the availability for funding for clinical services like personal care?

I think most of the states in which we operate in the personal care environment understand the value of personal care. It's something that is very important to them. We've seen great support through that. And so as far as their status today, their budgets, we think most of them are in pretty good shape. The one -- the biggest state we had concerned about was New York, which we're no longer in. As far as some of the pressures that the Medicare Advantage or managed Medicaid providers are seeing from the states, we have not seen that affect us. From the standpoint of the state, almost all of our states, but one dictate the price that we get. So it's a stated price and the managed Medicare providers, when they sign on, they are subject to paying us that rate. So at this point in time, it's really business as usual, and we're really kind of excited about where we see our states today as far as financial stability.

Okay. I appreciate that. And then maybe as a follow-up, just one on the labor environment. It seems like things have been fairly stable across the board for several quarters now. Do you feel like that's sustainable going into 2025? And I guess is there anything you're monitoring in terms of either the broader economic environment or the industry that could impact hiring trends in your view?

No. I mean I think when you look at our hiring, we've been very solid, particularly on the personal care side for probably one year, 1.5 years now with some good solid hiring numbers. So I think we're in a good place there. Clinical services, we've certainly seen that improve over the last six to nine months. So I think that trend continues to be favorable. There will always be some challenges on the clinical side depending on markets, but that's nothing that I think is unusual. I don't see anything kind of in the future that would materially impact that kind of continued improvement, the solid hiring numbers on the personal care side and continued improvement on the skilled side.

Okay. Great. Appreciate all the color.

The next question comes from Matthew Gillmor with KeyBanc. Please go ahead.

Hey. Thanks for the question. I wanted to follow up on the personal care growth metrics. I think Dirk had referenced the improvement in the fill rate, which we see in the hours per census metric. I was curious what was driving that? Is that more favorability in terms of just the labor dynamic and caregivers filling hours? Or is there an operational thing going on behind the scenes that is also helping that? And just overall, what's sort of the sustainability around that favorable fill rate?

Yeah. I think it's two things. One, certainly, the hiring environment has helped on the fill rate. But also from an operational standpoint, we've provided additional tools to our schedulers that I think has enhanced that. And we'll continue to look at opportunities to make the scheduling process better. So I think there's opportunities for incremental improvement in that number, but certainly very pleased how that number has rebounded. And again, I think it's kind of twofold. One, strong hiring, but then also some of the things that we're doing on the operational front to identify where we have availability with caregivers who want to work more hours, what their hour when they -- what their availability is during a week and getting that more in real time has certainly helped us increase that fill rate.

And then I wanted to ask on the value-based care topic. I was curious with the close of Gentiva, that was serving as a catalyst to move things forward, particularly given their exposure to Texas, which is a stronger value-based care market. Anything you report in terms of how you're thinking about value-based care with the Gentiva close?

No, we're excited about with the additional size and moving into the Texas market. We'll be able to work with some of the payers in those type of contracts. Just realize that from a value-based standpoint, it's really about relationships if you think about it. The value base itself, the revenue, as we've said before, is somewhat immaterial to a company our size. But what it allows us to do is to prove our ability to help our payers reduce their overall cost of some of the high-cost clients or patients that we take care of. So, we will continue along those lines. It's exciting, but it really, to us, really helps us solidify our relationships with these payers.

Got it. Thank you.

The next question comes from Andrew Mok with Barclays. Please go ahead.

Hi, good morning. Wanted to follow-up on the labor comments. I understand there's been some nice hiring trends in the broader Home Care sector and in your Personal Care segment. But wage inflation and unit cost inflation still looks like it's running a bit elevated in the 5% to 6% range or so. So, we'd love to hear your outlook on wage inflation over the next 15 months or so and what it's going to take to drive unit cost inflation down to more historical levels? Thanks.

Well, when you look at it on the Personal Care side, we really haven't seen that type of wage inflation and we've been fortunate in the markets. Our larger markets that we've gotten rate increases that have offset that and been able to kind of maintain our gross margin profile on the personal care side. So, that's 3/4 of our business there. When you look at the Skilled side, again, I think it's gotten better. I think we're actually kind of running more in that 3%, depending on -- maybe 3% to 4% wage inflation in markets. There might be a market or two that's an outlier there. But I think overall, that has improved on the on the Clinical side. But again, Personal Care side, we've been fortunate to get the rate increases that have been able to offset those pressures.

Right. Understood. But the underlying cost inflation is still running in that mid-single-digit so you're just getting the higher reimbursement to offset that, correct?

It really -- Andrew, it depends on the Personal Care side, where we have markets where we either have a union contracts. So, those wage rates are largely set in those markets. And those that have minimum wage pressures, which we've seen over the last few years, that could be anywhere from 2%, 3%, 4%, depending on kind of what the raises are there from minimum wage, but we've seen corresponding reimbursement offsets for those.

Okay, great. And then on the Hospice side, length of stay seems to be bouncing around quite a bit in recent years. I know M&A skewed some of those metrics, but hoping you could provide a bit more color on underlying trends in length of stay. What's driving some of the variability in that line? And where would you expect that to stabilize on a normalized basis? Thanks.

Well, I think on the Hospice, we're actually starting to see those numbers stabilize. I mean certainly, if you're comparing it to the COVID years, the -- we certainly saw a much shorter length of stay. There were things that were in place during the public health emergency that influenced that. That really drove down length of stay, particularly in skilled facilities. Once those left us kind of ended, you've actually started seeing length of stay numbers which revert back to a kind of more normalized basis. So, I think where we currently sit is about right, both from an average length of stay and honestly, even from a median length of stay.

Great. Thank you.

[Operator Instructions] The next question comes from Ryan Langston with TD Cowen. Please go ahead.

Hi. Maybe back to the PCS rate environment. I mean you keep getting pretty good rates, I think, 5.5% in 2025 in Illinois. I guess at some point, should we maybe be on 2025 sort of think about reverting back to more lower single digit rates? Or maybe now, are we structurally thinking slightly higher than historical rates? And might those assumptions kind of change depending on the outcome of today's election?

Yes, Ryan. I think with Illinois, 5.5%, I think, is a good example of some of the markets that we've seen recently that have decided to start giving rate increases for our services, not in necessarily in relation to rising minimum wage that we've seen in the last several years, but actually in an effort to expand and increase access to the service. So we were already nicely ahead of even where Chicago in wage price was in Illinois. The rate increase we're getting Jan of 2025 actually continues to put us even further ahead of the minimum wage scale there in order to try to get more access. And we are starting to see that in a few of our markets that have given us rate increases, which is a little bit of a new dynamic. I think the last two, three, four years with minimum wage coming up, that's really been the impetus for a lot of the reimbursement increases. So I think our comments at a high level have been, yes, over the next couple of years, we expect probably the frequency of rate increases to probably go back to more of a historical norm, keeping us kind of in that 3% to 5% overall kind of growth rate. So we kind of talked earlier on our call about targeting a 2-ish percent increase in hours growth. So the rest of that would be from rate. But we expect to see that moderate. But again, still promising to see certain markets that are doing things in order to increase access and actually given us good support in that effort.

Okay. And then just last 1 for me on the Gentiva acquisition. Can you remind us if there's any unusual seasonality, the cadence of revenues or EBITDA may be different from your current PCS book? And I know you're not planning to bring them onto your EMR for a little bit, but are you able to overlay any sort of internal technology or planned initiatives in the next maybe year or 18 months until you get them onto HomeCare homebase? Thanks.

Yes. Nothing else from a seasonality standpoint that would be any different than our kind of normal business. I think the big drivers there, obviously, and PCS particularly, we see Q1 usually being the lowest margin quarter for us, just from the reset of payroll taxes, things like that. Usually see some step up into Q2 and Q3, and Q4 is usually our best quarter in PCS. But more along those economic lines of payroll taxes, but nothing else to note really that's any different in the Gentiva business. But I think from a perspective of technology, they're going to come on to our payroll system very quickly. So anything that we have and we've implemented in our business is to kind of support the hiring efforts, onboarding efforts, the caregiver app, things like that. Those are all things I think we'll be able to deploy into that population even before going into an EMR patient billing system down the road.

The next question comes from Ben Hendrix with RBC Capital Markets. Please go ahead.

This is Mike Murray [ph] on for Ben. Hospice same-store ADC growth is pretty good, but admissions were a little bit softer. Can you touch on the competitive dynamics in this segment? And do you expect same-store ADC growth to continue to improve moving forward?

Yes. I think when you look at the same-store numbers, I am optimistic that those numbers will continue to improve on a sequential basis. I also think that there's opportunity to move more into that kind of the mid to upper single digits on the same-store growth there. So I think we're in a good place. I think with the new sales leadership is going to certainly be helpful there. It kind of brings new energies, new thoughts, new ideas around it. But certainly, I think there's a continued improvement.

All right. Thank you. And then just another question. So same-store home health stats seem to be trending in the right direction in the last few quarters. Obviously, they took a meaningful step back during the quarter. I appreciate the commentary on the operational investments in certain markets. Excluding these markets, could you give us a sense of what same-store growth would have been? Thanks.

Yeah, I think we would continue to see, actually, if you look at one of our larger markets that has went through the process operational changes earlier, we actually saw a nice growth there. Not quite to the mid to upper digits that we'd like to see it, but certainly more in the 2% to 3% range there. So there are certainly opportunities to improve on home health and certainly optimistic that once we get through these operational changes there as far as this kind of around centralization of admissions and intake and scheduling, I think there's going to be some real opportunities to improve the numbers on the home health side.

All right. Thank you.

This concludes our question-and-answer session. I would like to turn the conference back over to Dirk Allison for any closing remarks.

Thank you very much, operator. I want to thank everyone for their interest in Addus today and for being part of our call. We hope everyone has a good day and a good week. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.