Almost Family (AFAM) 8-K Regulation FD Disclosure

November 2011

Forward Looking Statements

This presentation contains, and answers given to questions that may be asked today may constitute, forward-looking
statements that are subject to a number of risks and uncertainties, many of which are outside our control.All
statements regarding our strategy, future operations, financial position, estimated revenues or losses, projected costs,
prospects, plans and objectives, other than statements of historical fact included in the presentation, are forward-
looking statements.When used in this presentation or in answers given to questions asked today, the words “may,”
“will,” “could,” “would,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “potential,” “continue,” and
similar expressions are intended to identify forward-looking statements, although not all forward-looking statements
contain these identifying words.You should not place undue reliance on forward-looking statements.While we believe
that we have a reasonable basis for each forward-looking statement that we make, we caution you that these
statements are based on a combination of facts and factors currently known by us and projections of future events or
conditions, about which we cannot be certain. For a more complete discussion regarding these and other factors which
could affect the Company's financial performance, refer to the Company's various filings with the Securities and
Exchange Commission, including its filing on Form 10-K for the year ended December 31, 2010 and subsequently filed
Forms 10-Q, in particular information under the headings "Special Caution Regarding Forward-Looking Statements"
and “Risk Factors.”These cautionary statements qualify all of the forward-looking statements.In addition, market and
industry statistics contained in this presentation are based on information available to us that we believe is accurate.
This information is generally based on publications that are not produced for purposes of securities offerings or
economic analysis.

All forward-looking statements speak only as of the date of this presentation.Except as required by law, we assume
no obligation to update these forward-looking statements publicly or to update the factors that could cause actual
results to differ materially, even if new information becomes available in the future.

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Almost Family
Overview

Almost Family

Founded in Louisville KY - 1976

Two Home Health Segments:

- Visiting Nurse, Medicare-certified

Skilled (~82% of Revenue)

- Personal Care, primarily Medicaid-Waiver

Non-skilled (~18% of Revenue)

Revenue Run Rate of approximately
$370 Million

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AFAM - Business Thesis

þCompelling demographics and fragmentation present
long-term opportunity - outweigh short-term
regulatory pressures

þLong history of outstanding revenue and earnings
growth

þStrong geographic cluster focus, cash flows and
capital structure

þProven ability to grow the platform with a balanced
approach - organic and acquisitions

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Almost Family

Northeast Cluster

Southeast Cluster

Midwest Cluster

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Almost Family

($Millions)

$86.6

$209.3

$75.8

Revenue

Track Record of

Strong Performance

- 4 Yr CAGR Revenue 40%

- 4 Yr CAGR EPS 42%

-Last 4 Yrs:

- 58% Organic Growth

- Acquired $156 Million

in Revenue

$128.8

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$296.0

$84.4

$86.2

$335.3

Characteristics of Medicare Population

Source: Kaiser Family Foundation Medicare Primer 2009

45 million beneficiaries

-Limited Resources - 1 out of 2 have income of less than

$21,000 (near poverty level)

-1 out of 3 - have 3 or more chronic health conditions

-1 out of 3 -have cognitive or mental impairment

-1 out of 3 -are in poor health

-1 out of 5 - have significant limitations in activities

of daily living

-1 out of 8 - is over 85 years old

- 1 out of 20 - lives in a nursinghome

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Number of New 65 Year Olds Per Day

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The Benefits of Home Health Care

Bending the Cost Curve

- Lower cost per day vs.
hospital & nursing homes

- Lower costs to Medicare
Program

- Prevents mild exacerbations
from escalating into critical
situations

Cost per day

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Who Receives Home Health Care?

Over 3.5 million Americans

rely on home health care to stay

in their homes.

- 80+ year old, sick patients

- Chronic conditions, sickest of the sick

- Want to “Age in Place”, out of

hospitals & nursing homes

- Want to restore their ability to care

for themselves

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Home Health Evolving as a Broader
Solution

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Industry evolving from post-
hospital stay to serve broader
category of patients:

-Still serving hospital discharged
“post-acute” patients - Shorten length
of stay

- Evolving to serve more chronically
ill patients on a “pre-acute” basis to
avoid unnecessary hospitalizations

-Hospital Inpatient stays down 4%
over 5 years

Our Mission - “We Are Senior Advocates”

One Shared Goal - allow
Seniors to “Age in Place”
at home at a lower cost to
Medicare

Advocates on behalf of the
sick & elderly

Make lives of elderly, acute
& chronically ill better

Backbone of who we are &

how we run our business

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Local Market Emphasis

Managing Successfully by:

Placing Senior Management

closer to local markets

Local “Course Knowledge”
hometown business

Growing locally based sales &
marketing staff

Standard local office operating model,
with local office flexibility in
marketing & clinical programs

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Regulatory Front

2011 Medicare Changes

Topic	Discussion
Reimbursement Rate Cut	~ 5.2% cut in national payment rate - reduced margins ($11.5M reduction to YTD Q3 2011 revenue)
Physician Face- to-Face Encounter	Agencies must get documentation of encounter 90 days before or 30 days after admit
Therapy Reassessments	Agencies must reassess therapy need at 30 days and visits 13 and 19

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2012 Medicare Changes

Topic	Discussion
Reimbursement Rate Cut	•“Market basket update” rate increase of 1.4% •“Case mix creep” adjustment of 3.79% •Effective rate cut of approximately 2.31% nationwide
Other changes	•Reduced payments for high therapy episodes •Removed two hypertension codes •Recalibrated case-mix weights •Shifted a -1.32% case-mix adjustment to 2013
Impact on AFAM reimbursement	•Preliminary analysis indicates 5.0 to 5.5% effective 2012 rate cut for AFAM with Q4 2011 phase-in

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PPACA Long-Term Impact

Topic	Impact
Market Basket Updates	Reduces updates by 1% in 2011, 2012 and 2013
Re-basing Rates	Begin 2014, phased in over 4 years with adjustments limited to 3.5% per year
Productivity Adjustment	Begin 2015
Rural Add-on	3% in 4/1/2010 - 2015
Outlier Cap	10% of revenue beginning 2011 (implemented by CMS in 2010)

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MedPac 2011 Recommendations

Number	Recommendation
8-1	CMS should improve controls in counties with aberrant utilization, suspend payment if fraud indicated
8-2	Accelerate rebasing to two year phase-in starting 2013, eliminate 2012 market basket update
8-3	Revise HH PPS to remove number of therapy visits as a payment factor
8-4	Establish co-pay for episodes not preceded by an inpatient stay

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Financial Highlights

2010 and YTD Q3 11 Highlights

YE2010YTD

- Revenues +13%-

- Diluted EPS +15%-35%

- MCR Admissions+12%+ 7%

- MCR Episodes+12%+ 3%

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Organic Medicare Growth

YE2010YTD

- Admissions +11%+5%

- Episodes +12%+3%

Cambridge Acquisition

- $6.2M Revenue and $0.06 EPS

for 2 months in Q3

- Transition proceeding

according to expectations

Investment Highlights

Annual Revenue run rate over $370 million

Leading Regional Home Health Provider

- 40% four year revenue CAGR

- Decentralized operating model

Strong Capital Position

- $155 million immediately available

for future growth

Disciplined Approach to acquisitions driven

by Seasoned Management

Growing Force in consolidating home health care market

- 10 acquisitions in four years

- Three geographic clusters: Northeast, Southeast & Midwest

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Contact Information

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