Aveanna Healthcare Holdings Inc. (AVAH): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Aveanna Healthcare Holdings Inc., and frankly, the story emerging from their Q3 2025 results is one of calculated focus: they are deliberately pivoting toward higher-margin, preferred-payer volumes, evidenced by securing 30 such agreements. As a seasoned analyst, I see a model built on managing incredible scale-a workforce of 26,500 caregivers delivering high-acuity care across 341 branch locations-all while executing cost initiatives to support their revenue guidance exceeding $2.375 billion for the full year 2025. This Business Model Canvas strips away the noise to show you the nine core components that connect their complex patient needs to their reimbursement streams; it's the blueprint for how they intend to manage that $1,490.0 million debt load while delivering on their promise of cost-effective home care, so check out the details below to see the full picture.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Aveanna Healthcare Holdings Inc. uses to fuel its operations and secure its revenue streams as we head into the end of 2025. These partnerships are critical, especially given the reimbursement pressures in the sector.

The focus on payer relationships is clear, as 78% of Aveanna Healthcare Holdings Inc.'s revenues are generated within its Private Duty Services (PDS) segment. This segment is primarily pediatric private duty, which leadership views as a relatively protected class. The value proposition here is stark: Aveanna Healthcare Holdings Inc.'s pediatric nursing at home costs about $600 a day, which is a 10x savings compared to the macro difference of about $6,000 a day in an acute care setting.

Aveanna Healthcare Holdings Inc. has been aggressively pursuing its preferred payer strategy, which is designed to secure better reimbursement terms. As of Q3 2025, the company was on track to meet its goal of reaching 30 preferred payer agreements for the year, up from 22 previously. Furthermore, the company reported achieving eight new private duty services (PDS) preferred payer agreements as of Q3 2025.

The nature of these payer relationships is evolving, too. Aveanna Healthcare Holdings Inc. is pushing for value-based agreements, which include bonuses for hitting specific clinical outcomes and cost targets. The goal for these agreements was set to reach 12 by the end of 2025, a significant increase from three such agreements back in 2022 and eight at the end of 2024.

Government partners, specifically Medicaid and Medicare, dictate the reimbursement landscape. For 2025, Aveanna Healthcare Holdings Inc. achieved 11 state rate increases and two federal rate wins, which CEO Jeff Shaner referred to as achieving "rate clarity." Looking ahead to 2026, the company anticipates that its rate increases will be in the range of 2% to 3%. This is set against a backdrop where the CMS proposed a 6.4% aggregate cut to Medicare home health payments for 2026, though the finalized 2026 hospice payment rule included a 2.6% increase in Medicare base rate payments effective October 1. In the home health and hospice segment, episodic admissions are now well over 70%, meeting a key internal goal.

The table below summarizes key partnership metrics and financial context:

Aveanna Healthcare Holdings Inc. uses case management services to coordinate care between various entities, which inherently relies on strong relationships with hospitals and physician groups. These coordination efforts help ensure the provision of services between insurers, payers, physicians, and hospitals, supporting the company's goal of providing a high-quality, lower-cost alternative to prolonged hospitalization.

For strategic growth via Mergers and Acquisitions (M&A), Aveanna Healthcare Holdings Inc. has utilized external financial advisors. For instance, Edge Healthcare Partners served as the financial advisor to Aveanna Healthcare Holdings Inc. for its acquisition of Thrive Skilled Pediatric Care, which was announced in April 2025 and completed in June 2025. This acquisition added 23 locations across seven states to the Aveanna Healthcare Holdings Inc. footprint.

The reliance on Managed Care Organizations (MCOs) is implicit in the preferred payer strategy, which focuses on payers that reimburse on an episodic basis. The company views its PDS business as functionally an ICU bed at home, which provides significant value to its payer and government partners. Aveanna Healthcare Holdings Inc. operates across 38 states as of late 2025.

The key partnership initiatives for Aveanna Healthcare Holdings Inc. include:

• Securing preferred payer agreements, targeting 30 by year-end 2025.
• Achieving favorable rate adjustments through legislative advocacy with state Medicaid programs.
• Coordinating patient services with hospitals and physician groups via case management.
• Executing M&A with the help of financial advisors like Edge Healthcare Partners.
• Structuring contracts with MCOs and other payers to favor episodic reimbursement models, with episodic admissions exceeding 70%.

Finance: draft 13-week cash view by Friday.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Key Activities

You're managing a complex, diversified home care platform, so your key activities center on clinical delivery, strategic execution, and talent management. Here's the breakdown of what Aveanna Healthcare Holdings Inc. is actively doing, grounded in late 2025 numbers.

Delivering Private Duty Services (PDS) nursing care

This is the core engine, showing significant growth momentum through Q3 2025. A major activity here is securing better payment terms, which directly impacts the per-hour rate. The focus is on aligning clinical capacity with payers who value the specialized care provided.

The results from the third quarter ended September 27, 2025, show this activity is paying off:

The company is actively managing the spread per hour, which was $12.62 in Q3 2025, while making ongoing adjustments to caregiver wages to support higher volumes and better clinical outcomes. This segment drove a large portion of the overall revenue increase.

Operating Home Health & Hospice (HHH) services

Operating the Home Health & Hospice segment involves managing episodic care models and expanding the payer mix to ensure sustainability and growth. A key activity is maintaining a high episodic payer mix, which was reported at 77% in Q3 2025.

The operational performance for this division in Q3 2025 included:

• Revenue of approximately $62.4 million.
• Year-over-year revenue growth of 15.3%.
• Total patient admissions of 9,700.
• Total episodic volume growth of 14.2%.

This segment is a priority area for growth, with leadership planning to replicate the successful preferred payer strategy used in PDS to propel future expansion.

Executing the Strategic Transformation cost initiatives

This activity is about driving profitability through operational alignment and rate enhancements, which is clearly reflected in the improved financial metrics for 2025. A central part of this transformation is the preferred payer strategy.

Key milestones achieved as part of this strategic execution include:

• Raising the full-year 2025 revenue guidance to greater than $2.375 billion.
• Raising the full-year 2025 Adjusted EBITDA guidance to greater than $300 million.
• Achieving a consolidated gross margin of 32.6% in Q3 2025.
• Securing 10 reimbursement rate enhancements in private duty services during the year.

The company is actively executing on its goal to increase preferred payer agreements, moving from 22 to a total of 30 agreements by adding 5 in Q3 2025 alone. These agreements now represent approximately 56% of total PDS MCO volumes.

Recruiting, training, and retaining 26,500 caregivers

Managing the workforce is a constant, critical activity, especially given the challenging labor environment. As of the March 2025 financial presentation, Aveanna Healthcare Holdings was operating with 26,500 caregivers across 341 locations.

The activity of retention and hiring is directly supported by the preferred payer strategy, as aligning efforts with payers willing to engage on enhanced reimbursement rates helps to support caregiver wages. The company is defintely focused on improving caregiver hiring and retention trends.

Integrating acquired entities like Thrive Skilled Pediatric Care

A major activity in 2025 was completing the acquisition of Thrive Skilled Pediatric Care, LLC (Thrive SPC) in June 2025. This integration activity is expected to be completed by the end of the year.

The integration effort involves combining operations from Thrive SPC's 23 locations across seven states (including new states like Kansas and New Mexico) with Aveanna's existing footprint. The CEO noted that the Thrive acquisition is accretive to the 2025 results, meaning it is already contributing positively to financial performance.

The combination reinforces the strategic mission by enhancing the footprint in existing states and introducing Aveanna's care model into new ones. Finance: draft 13-week cash view by Friday.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Key Resources

You're looking at the core assets Aveanna Healthcare Holdings Inc. needs to run its business, the things it owns or controls that make its value proposition possible. Honestly, for a healthcare provider, these are mostly people and physical footprint, backed by capital.

Here's a look at the scale of those tangible and intangible assets as of late 2025, focusing only on the hard numbers.

The physical and human capital base is significant, underpinning the service delivery model.

• National network of 341 branch locations across 34+ states
• Large, specialized workforce of 26,500 clinicians

The financial structure also represents a key resource, especially given the recent refinancing activity. You see the total indebtedness figure, but the hedging strategy is also a critical part of managing that resource.

• Total debt capital of $1,490.0 million as of Q3 2025
• Interest rate swaps covering $520.0 million notional amount
• Interest rate caps covering $880.0 million notional amount

Then you have the less tangible, but equally vital, resources that drive patient volume and quality.

• Clinical innovation and data analytics platforms
• Established referral relationships with healthcare systems

The relationships are key; for instance, the Private Duty Services segment revenue growth was 25.6% compared to the prior year quarter, which speaks directly to the strength of those established channels.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why payers and patients choose Aveanna Healthcare Holdings Inc. over other options, and honestly, the numbers from the third quarter of 2025 really back up their claims of delivering specialized, high-value care.

High-acuity, medically complex care delivered at home is the foundation. This isn't routine care; it's bringing sophisticated medical support to the patient's residence. This focus on complexity allows Aveanna Healthcare Holdings Inc. to command better rates and secure specialized contracts. The scale of this commitment is evident in their operational scope; for instance, in Q3 2025, their Private Duty Services segment alone generated revenue of $514 million, marking a 25.6% year-over-year increase.

This specialized approach naturally leads to the value proposition of patient-centric, one-on-one care for vulnerable populations. The company is structured to provide that dedicated attention. For example, the revenue per hour in their Private Duty Services climbed to $43.51 in Q3 2025, which is a 12.7% jump year-over-year, suggesting successful rate negotiation tied to the quality of that one-on-one service. The company is actively working to expand its reach in Medicaid states, targeting between 38-40 states, up from the 29 states they were operating in as of Q2 2025.

The platform is intentionally diversified to manage risk and capture different patient populations, which is a key strength when you look at their overall financial performance. Here's a quick breakdown of the segments based on recent performance:

The overall company revenue for Q3 2025 hit $621.9 million, up 22.2% from the prior year period, showing that the diversified model is driving serious top-line momentum.

The focus on enhanced clinical outcomes driving value-based bonuses is translating directly to the bottom line. Aveanna Healthcare Holdings Inc. is clearly aligning incentives with payers. They reported an episodic payer mix above 70% in their Home Health and Hospice segment in Q3 2025, hitting 77%. This focus is backed by a goal to secure 12 value-based agreements by the end of 2025, up from 8 at the end of 2024. This strategic alignment is a major reason why their Q3 2025 Adjusted EBITDA reached $80.1 million, a massive 67.5% increase over the prior year period.

Finally, the value proposition of being a cost-effective alternative to institutional settings (SNF/hospital) is what underpins the entire financial story. By keeping high-acuity patients at home, they reduce systemic costs, which is what payers are willing to pay a premium for through those value-based contracts. This operational efficiency is reflected in the margin expansion; the consolidated gross margin for the nine-month period ending September 27, 2025, was 33.7% of revenue, up from 30.8% the prior year. The company has raised its full-year 2025 revenue guidance to greater than $2.375 billion and Adjusted EBITDA to greater than $300 million, which is a direct result of successfully executing this high-value, cost-conscious care model.

You should track the growth in preferred payer agreements, as that directly correlates with the higher-margin revenue streams you're seeing in the latest reports. Finance: draft 13-week cash view by Friday.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Customer Relationships

You're managing a national home care platform, and the relationship with the entities paying for that care-the payers-is absolutely central to your success. For Aveanna Healthcare Holdings Inc., this means a highly structured approach to managing relationships with both government programs and preferred private payers, alongside the direct, continuous care provided to patients.

Dedicated case management and care coordination

Aveanna Healthcare Holdings Inc. supports its patient base with dedicated resources, ensuring continuity across its diverse service lines, which include adult and pediatric hospice, home health private duty nursing, and medical solutions. The company has registered nurses, registered dietitians, and customer service technicians available 24 hours per day, 365 days per year, to support patients in-hospital, at-home, or remotely. This support is designed to ensure patients receive the best nutrition assessments, change order reviews, and formula selection expertise. Aveanna Healthcare Holdings Inc. also provides case management services to assist patients and families. The company operates across 38 states as of late 2025.

Direct, high-touch relationship with home-based patients

The core of the relationship is delivering care in the comfort of the patient's home, which is a cost-effective alternative to prolonged hospitalization. Aveanna Healthcare Holdings Inc. serves a large and complex patient population. As of late 2025, the company is a national leader serving more than 80,000 patients across its platform. Specifically, the private-duty services segment served 38,000 private duty patients across 27 states as of early 2025. In the Home Health and Hospice segment, the company saw 9,700 patient admissions in the first quarter of 2025, and a similar volume of 9,700 patient admissions in the third quarter of 2025. Furthermore, the Medical Solutions segment served approximately 91,000 unique patients in the third quarter of 2025. This high volume necessitates a focus on caregiver alignment to meet patient demand, especially in private-duty nursing where patient demand currently exceeds caregiver supply.

Strategic account management for preferred payers

Aveanna Healthcare Holdings Inc. heavily emphasizes strategic account management, particularly through its preferred payer strategy, which drives a significant portion of its volume and financial performance. This focus is key to navigating the evolving reimbursement environment. The company aims to align its clinical capacity with payers willing to offer enhanced reimbursement rates and value-based agreements. The progress on these strategic payer relationships is tracked closely:

This payer focus directly impacts financial results; for instance, the Home Health and Hospice segment revenue reached $62.4 million in the third quarter of 2025, a 15.3% year-over-year increase, driven in part by this strategy. The Private Duty Services segment revenue was $514 million in Q3 2025, a 25.6% increase year-over-year. The company is working to replicate this success in its Medical Solutions segment.

Focus on improving clinical outcomes and customer satisfaction

A key component of the preferred payer relationship is the focus on measurable results. Aveanna Healthcare Holdings Inc. links its payer strategy to clinical performance improvements. The episodic focus in Home Health and Hospice has improved clinical outcomes by more than 70%. The value-based agreements are explicitly bonus-oriented for achieving specific clinical outcomes and cost targets. The company's overall revised full-year 2025 guidance reflects this momentum, projecting revenue greater than $2.375 billion and Adjusted EBITDA greater than $300 million. The third quarter 2025 gross margin was 32.6% of revenue, or $202.8 million.

• The company is advocating for Medicaid rate integrity in at least ten states, having already seen rate increases in five states.
• The company's overall revenue for Q3 2025 was $621.9 million, a 22.2% rise year-over-year.
• Adjusted EBITDA for Q3 2025 was $80.1 million, a 67.5% increase compared to the previous year.

Long-term, continuous care for chronic conditions

Aveanna Healthcare Holdings Inc. provides services to medically complex, high-cost patient populations, which inherently requires a focus on long-term and continuous care management. The platform serves the geriatric population alongside adult and pediatric patients requiring ongoing support. The company's commitment to this continuous care model is evident in its segment focus; for instance, the Home Health and Hospice segment is a core area for growth, with revenue reaching $56.7 million in Q1 2025 (a 3.9% year-over-year increase) and $62.4 million in Q3 2025 (a 15.3% year-over-year increase). The company's long-term revenue growth target is 10%, with 7% organic growth targeted for 2025.

Finance: review the impact of the proposed 2026 CMS home health rule cut (proposed 6.4% aggregate cut) on the long-term sustainability of continuous care contracts by next Tuesday.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Channels

Aveanna Healthcare Holdings Inc. utilizes a multi-faceted channel strategy to reach and serve its patient populations, blending a vast physical footprint with targeted sales and digital support.

Network of 341 local branch offices for decentralized operations

The operational backbone relies on a decentralized network, allowing for localized service delivery across the country. As of late 2025, Aveanna Healthcare Holdings Inc. operates across 38 states. This physical presence is anchored by a network that includes the stipulated 341 local branch offices, facilitating proximity to patients requiring complex care.

Direct-to-patient home care delivery model

The core channel is the direct delivery of skilled nursing, therapy, and personal care services into the patient's home. This model supports significant patient volumes across segments. For instance, in the Private Duty Services (PDS) segment, the company served 38,000 private duty patients across 27 states in a prior period. For the Home Health and Hospice (HHH) segment, there were 9,700 patient admissions in the third quarter of 2025 alone.

The scale of the direct delivery channel is reflected in the financial performance, with Q2 2025 revenue reaching $589.6 million, contributing to the revised full-year 2025 revenue guidance of greater than $2.3 billion.

The following table details key volume and revenue metrics across the primary service segments as of recent reporting periods:

Referral networks from hospitals and physician offices

Referrals from institutional and professional sources are critical for filling the direct-to-patient channel capacity. The company actively manages its payer mix to align with partners who provide more favorable reimbursement structures, which indirectly influences referral patterns.

• PDS volume tied to preferred payers reached 55% as of September 2025, with a goal to reach 75% to 80%.
• The Home Health and Hospice segment maintained an episodic payer mix of 76% in Q4 2024.
• Approximately ~90% of total revenue is generated from government payers.

Digital platforms for caregiver scheduling and clinical documentation

While specific platform usage statistics aren't provided, the company's strategic focus on technology is a key channel enabler for managing its large caregiver workforce and ensuring compliance. This technology supports the scheduling and documentation required to service the patient base efficiently, which is vital given the industry-wide staffing challenges.

Sales teams focused on MCO and government relations

Dedicated sales and government affairs teams act as a direct channel to secure favorable reimbursement rates and contracts with major payors, which underpins the viability of the direct care channel. The focus is on securing rate increases and value-based agreements.

• The government affairs teams secured 11 state rate wins in 2025 year-to-date (as of September 2025).
• The CMS 2026 hospice payment rule included a 2.6% increase in Medicare base rate payments.
• CMS proposed a 6.4% aggregate cut to home health payments for 2026.

The revised full-year 2025 Adjusted EBITDA guidance is greater than $270 million, reflecting the success of these rate-focused sales efforts.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Customer Segments

You're looking at the core patient populations that drive the revenue for Aveanna Healthcare Holdings Inc. as of late 2025. The business model is built around serving medically complex, high-cost patients across the continuum, from pediatrics to the elderly, primarily in the home setting. This focus allows them to offer a lower-cost alternative to acute care settings, which is a major value driver for payers.

The company's overall financial footing in late 2025 reflects this focus, with trailing twelve-month revenue reaching $2.29 billion as of September 30, 2025. Management has raised the full-year 2025 revenue guidance to greater than $2.375 billion.

The customer segments are best understood through the lens of Aveanna Healthcare Holdings Inc.'s operating divisions, which directly map to the patient populations they serve:

• The largest group is the medically complex pediatric patients, primarily served through Private Duty Services (PDS).
• Adult patients requiring skilled home health and hospice care fall mainly under the Home Health & Hospice (HHH) segment.
• Managed Care Organizations (MCOs) and Federal and state government programs (Medicaid/Medicare) are the primary payers for the services delivered to the patient segments.
• Families seeking long-term, continuous care for chronic illness are the direct recipients of the PDS and HHH services.

Honestly, the PDS segment is the engine right now, making up the lion's share of the business. For the third quarter ending September 27, 2025, the PDS segment revenue was approximately $514 million, representing a 25.6% year-over-year increase. This segment is functionally an ICU bed at home, offering a 10x cost savings compared to acute care settings.

Here's a breakdown of the key segment performance metrics from Q3 2025, which gives you a clear picture of where the volume and revenue are concentrated:

The HHH segment, which targets adult patients, is also showing strong volume traction. In Q3 2025, this segment saw 9,700 total patient admissions, marking a 9% year-over-year increase. Furthermore, the company is successfully aligning with the payers who fund these services. For the HHH business, the episodic payer mix stood at 77% in Q3 2025, showing a strong preference for value-based arrangements.

The relationship with payers, which includes MCOs and government programs, is critical. Aveanna Healthcare Holdings Inc. has been actively securing better terms, achieving 11 state rate increases and two federal rate wins during 2025. This focus on rate clarity is what helped the PDS segment secure 30 preferred payer agreements, covering about 55% of its available volumes.

For the PDS segment specifically, which serves the most fragile pediatric patients, the revenue per hour was $43.51 in Q3 2025. This high rate reflects the complexity and the value proposition of keeping these patients at home rather than in expensive hospital settings. The company operates across 34 states with 327 locations to service these diverse, high-need customer bases.

Finance: draft 13-week cash view by Friday.

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the engine at Aveanna Healthcare Holdings Inc. as of late 2025. Honestly, in a labor-intensive business like home healthcare, the cost structure is dominated by one thing: people.

Caregiver Wages and Benefits (largest operating expense)

The single biggest drain on the bottom line is the cost of labor, which is what you pay your nurses and aides. For the third quarter ending September 27, 2025, the company reported a consolidated Gross Margin of 32.6% of revenue, meaning the cost of revenue-where caregiver wages sit-was approximately 67.4% of revenue for that quarter. To put a finer point on it, the cost of revenue rate in Q3 2025 was \$30.89 per hour. This is the core expense Aveanna Healthcare Holdings Inc. manages daily.

General and Administrative (G&A) Overhead for 341 Locations

Running a national platform with 341 locations-as you mentioned-requires significant fixed overhead to support those field operations. While the specific G&A dollar figure for all locations isn't broken out separately from Cost of Revenue in the segment reporting, we know the scale. Aveanna Healthcare Holdings Inc. operates across 38 states as of August 2025. This overhead covers everything from regional management to the administrative staff needed to handle billing, compliance, and credentialing across that footprint.

Interest Expense on Total Debt of \$1,490.0 million

Debt service is a fixed, non-negotiable cost. As of September 27, 2025, Aveanna Healthcare Holdings Inc. reported total indebtedness of \$1,490.0 million. To manage the risk from fluctuating interest rates on this substantial amount, the company has actively hedged its exposure. Here's how that variable rate debt was structured near the end of 2025:

• Interest rate swaps converting variable rate debt to fixed rate: \$520.0 million notional amount.
• Interest rate caps capping exposure to SOFR at 2.96%: \$880.0 million notional amount.

So, substantially all of that \$1,490.0 million was hedged against rising rates.

Technology and Clinical Training Investment Costs

A key part of Aveanna Healthcare Holdings Inc.'s strategy involves ongoing investment to improve efficiency and clinical quality, which are costs incurred outside of direct patient care wages. These investments include transformational projects like systems conversions and implementations, which are often grouped with acquisition integration costs. Furthermore, the company explicitly mentions continued investments in clinical outcomes and sales resources to support growth.

Corporate Expenses, Including \$34.5 million in Q2 2025

These are the costs associated with running the corporate headquarters, separate from field-level G&A. For the second quarter of 2025, the reported corporate expenses totaled \$34.5 million. These expenses can fluctuate based on one-time items, such as costs associated with the Thrive acquisition mentioned in that period.

Here is a summary of the concrete financial figures we have for the cost structure as of the latest reported periods in 2025:

Aveanna Healthcare Holdings Inc. (AVAH) - Canvas Business Model: Revenue Streams

Aveanna Healthcare Holdings Inc. has set its full-year 2025 revenue guidance to be greater than $2.375 billion.

The Private Duty Services (PDS) segment is the largest component of the revenue base, representing seventy-eight percent (78%) of total revenues as of late 2025. This segment's revenue for the third quarter of 2025 was approximately $514 million.

The Home Health & Hospice (HHH) division contributed revenue of about $62.4 million in the third quarter of 2025. For the Home Health business specifically, the episodic payer mix for admissions in Q3 2025 was reported at 77%.

Revenue generation is heavily influenced by rates secured from various payers. In 2025, Aveanna Healthcare Holdings Inc. achieved 11 state rate increases and two federal rate wins. The company's strategy involves securing adequate rates from government and payer partners.

The preferred payer strategy in the PDS segment has seen expansion, with the number of agreements reaching 30 in total, adding 5 in Q3 2025. These preferred payer agreements now cover approximately 56% of total PDS Managed Care Organization (MCO) volumes.

The primary sources of payment for Aveanna Healthcare Holdings Inc.'s services are detailed below, reflecting the Q3 2025 performance snapshot:

Payments from government payers, specifically Medicaid and Medicare, are a key component, though the PDS segment, which is largely pediatric private duty, is considered a relatively protected class against certain Medicaid funding uncertainties. For the hospice portion of the HHH segment, the U.S. Center for Medicare & Medicaid Services (CMS) finalized its 2026 payment rule, which included a 2.6% increase in Medicare base rate payments.

Commercial and managed care payers (MCOs) are targeted through the preferred payer strategy, where partners agree to above-market rates or value-based bonuses. The company's focus includes:

• Securing adequate rates from government partners.
• Expanding preferred payer agreements in Private Duty Services.
• Navigating evolving regulatory environments.
• Achieving 10 reimbursement rate enhancements in private duty services as planned for 2025.