Aveanna Healthcare Holdings Inc. Common Stock 2026 Healthcare Summit

Sounds great. I want to take the compliment because you were one of the people who pointed out how bad we sucked on the way down from $10 back to $1. I just want to say thank you, Pito, for giving us some kudos on the other side of it, as you certainly brought out some of the realities to us back in 2021, 2022. As you said, Pito, we have been on a multi-year journey. Matt and I, and Debbie Stewart, our Chief Financial Officer, all took our roles in early 2023. Coming out of COVID, we absolutely needed a strategy that dealt with the lack of caregiver capacity in our businesses. Obviously, with the hyper wages that all happened through the COVID period. We are in year four now of our preferred payer strategy, government payer strategy. Both are continuing to work incredibly well.

As you talked about in each one of our businesses, we underpin our growth and where our clinicians. Our focus every day is to know where every one of our clinicians is going, why they are going there, not just the patients they are seeing, but who is the payer of the patient they are seeing, and is that payer in our preferred network? It is really the allocation of our clinical capacity. Start with our largest division, our Private Duty Services division. 80% of our revenue is in Private Duty Services. It is our most mature preferred payer market or segment. At the end of Q2, we had 37 preferred payer arrangements. Roughly 64% of our total volumes are in one of those arrangements. That is up from 57% at the end of the year. So nice movement year to date.

And really, seven preferred payer wins in 2026 to date and a couple more that we plan to announce the second half of the year.

Oh, this is live. Sorry, we're live here. I'll give out the winning lottery ticket here in a few minutes. But really going to end up being a great year for PDS. I'm sure we're going to get to California. We're going to talk about some of the government affairs wins as well. But really continued to be a great momentum with our PDS preferred payers. They want more. Even our very first preferred payer is still with us today. Matter of fact, I think the CEO was here this morning. You guys were talking to her. So they've been a great preferred payer for us. They're still with us. They still want more capacity from us. So our very first preferred payer, we're about 55% of their census in the specific state. We signed that first contract four years ago, and they still want us to take more.

They want more nurses, they want more of our capacity because it truly is bending the total cost of care for them. So excited about where PDS goes. Flipping over quickly to Home Health and Hospice. Also really excited about where our Home Health and Hospice teams are. We have 50 preferred payer agreements. Think of those as episodic agreements, both Medicare and Medicare Advantage, but all episodic in nature. 81% of our business is aligned with an episodic contract in Home Health. That is, we believe it's industry-leading, certainly to the higher end of the industry, and we're growing 15.5% year over year organically in the Home Health business. Really, really proud of that. Lastly, but not least, we've just finished the Medical Solutions modernization in 2025, coming in early 2026, and we've got our first 20 preferred payers identified.

We're really working that preferred payer progress process in the Medical Solutions. It's still, Matt and I would tell you, it's in its infancy stages, but proud to be bringing the preferred payer strategy to Medical Solutions as well.