ResCare CEO Addresses Congressional Subcommittee On Medicaid Funding

LOUISVILLE, KY (January 16, 2008) - ResCare, Inc. (NASDAQ: RSCR) President and Chief Executive Officer told a Congressional subcommittee today that the nation's workforce crisis must be addressed in order to ensure that there are workers to take care of our country's most vulnerable citizens.

Ralph G. Gronefeld, Jr. addressed a special Subcommittee on Health in Washington, D.C. this morning in a hearing directed at "Helping Families with Needed Care: Medicaid's Critical Role for Americans with Disabilities." Mr. Gronefeld told members that the workforce crisis needs to be addressed in any discussion of changes or improvements to Medicaid policy.

"High turnover rates, low wages, shortage of available workers and increased demand are pervasive problems for families, individuals receiving services and the people who provide those services," said Mr. Gronefeld.

Mr. Gronefeld asked members to support HR 1279, a bill that would allocate money to states to provide increased wages and career opportunities for the Direct Support Professionals who care for people with developmental and intellectual disabilities. Mr. Gronefeld also said changes to Department of Labor workforce rules are needed to attract people to disabilities services.

"Congress should also consider legislation to develop incentives, such as training programs and career advancement opportunities, which would enable more people to enter this field," Mr. Gronefeld added.

ResCare's services to people with intellectual, developmental and cognitive disabilities comprise its largest operating segment. The company has provided services to those with disabilities for more than 30 years and has extensive experience in a diverse number of state-developed Medicaid waiver services that were implemented to move care from institutions to home and community settings.

Mr. Gronefeld said the increasing costs of Medicaid services can be addressed by looking at the more than 200 different waiver programs currently being operated over the 50 states and finding the ones that provide the best outcomes for the least cost. He also suggested a study of Telecare or remote caregiving services that provide individuals with safe, secure supports without intruding on their lives. ResCare is currently piloting a remote caregiving service called Rest Assured© in partnership with the non-profit Wabash Center and Purdue University in Indiana.

"We found that individuals who receive remote caregiving services show a greater satisfaction with the added independence they experience. In addition, savings can be realized that would enable us to serve many more people for the same amount of money," Mr. Gronefeld told the members of the subcommittee.

"The changes I'm suggesting today can ensure the safety, security and independence for those we serve; simplify the system; standardize best practices; and attract committed dedicated care givers."

When asked about the complexity of service models and what could be done about them, Mr. Gronefeld said states should not measure the outcome of quality service through the paperwork, they should ask those receiving care and their families.

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ResCare, with 30+ years of experience helping people reach their highest level of independence, is one of the largest providers of home care to the elderly and those with disabilities. It also offers residential and support services to people with intellectual and developmental disabilities and provides education, vocational training and job placement for people of all ages and skill levels. Based in Louisville, Kentucky, ResCare and its 42,000 dedicated employees serve daily more than 65,000 people in 37 states, Washington, D.C., Puerto Rico and in a growing number of international locations.

From time to time, ResCare makes forward-looking statements in its public disclosures, including statements relating to expected financial results, revenues that might be expected from new or acquired programs and facilities, its development and acquisition activities, reimbursement under federal and state programs, financing plans, compliance with debt covenants and other risk factors, and various trends favoring downsizing, de institutionalization and privatization of government programs. In ResCare's filings under the federal securities laws, including its annual, periodic and current reports, the Company identifies important factors that could cause our actual results to differ materially from those anticipated in forward-looking statements. Please refer to the discussion of those factors in our filed reports. Statements related to expected financial results are as of this date only and ResCare does not assume any responsibility to update these statements.