Ongoing Medicaid redeterminations are significantly impacting patient onboarding and retention in key states like Illinois, Texas, and New Mexico, leading to disruptions in census growth for Addus HomeCare.

Rising inflation and global economic uncertainties, partly driven by the Middle East conflict and potential IMF downgrades, could increase operational costs for Addus HomeCare's caregivers (e.g., fuel, wages) and potentially influence government healthcare funding upon which the company heavily relies.

Labor market dynamics, including a strong US job market with low unemployment, may lead to increased wage pressures for home healthcare caregivers, potentially affecting Addus HomeCare's profit margins if these costs cannot be fully offset by rate increases or efficiencies.