Addus Homecare Corp.: CMS Imposes Medicare Home Health and Hospice Moratorium

研报英文原文证据摘录

Addus Homecare Corp.: CMS Imposes Medicare Home Health and Hospice Moratorium

Equity Research

U.S. Healthcare Facilities & Managed Care

14 May 2026

Addus Homecare Corp.

CMS Imposes Medicare Home

Health and Hospice Moratorium

The action effectively halts incremental supply—and likely ADUS UNDERWEIGHT

Unchangednear-term M&A—and signals an escalation in program

U.S. Healthcare Facilities &

integrity enforcement. Managed Care NEUTRAL

Unchanged

Price Target USD 92.00

Medicare HH&H Moratorium: On May 13, CMS announced a six-month moratorium on lowered -10% from USD 102.00

Medicare enrollment for home health and hospice agencies, effective immediately, in an effort Price (13-May-26) USD 94.51

to crack down on fraud. The action effectively halts incremental supply—and likely Potential Upside/Downside -2.7%

near-term M&A—and signals an escalation in program integrity enforcement. Existing providers Source: Bloomberg, Barclays Research

can continue to operate, but the freeze on new entrants and branch expansions, alongside

intensified audits, should flush out non-compliant operators. While the initial stock reaction Market Cap (USD mn) 1764

was negative (-4% vs S&P 500 +0.6%), a tighter industry structure could ultimately benefit Shares Outstanding (mn) 18.66

higher-quality incumbents such as ADUS. Free Float (%) 97.18

52 Wk Avg Daily Volume (mn) 0.2Additional Thoughts: Though concerns may be overdone, it's unclear how much friction

Dividend Yield (%) N/Aintensified efforts to weed out fraud will have on legitimate operators like ADUS near-term. We

Return on Equity TTM (%) 9.45note that home health and hospice account for 28% of 2025 segment operating income, with a

Current BVPS (USD) 59.8093% Medicare mix in hospice and 67% in home health. This does not directly impact existing