Chemed Corporation: Integration of Covenant Health, Its Impact on Growth & Other Major Drivers

Chemed Corporation, a diversified company primarily engaged through its subsidiaries, VITAS Healthcare Corporation and Roto-Rooter, recently provided updates in their Second Quarter 2024 Earnings Call. The overview pulls into focus a mixed performance within its distinct operations.
Starting with VITAS Healthcare Corporation, there’s a pronounced positive trajectory witnessed in the segment, particularly off the back of the acquisition of Covenant Health. The acquisition has been integral in boosting the admissions by 11%, totaling 17,344 from the comparative period in 2023 and expanding the average daily census by 14.4%. It contributed approximately $8.2 million to $8.7 million in revenue. The focused strategic growth through acquisition and retention of clinical staff has shown impressive prospects for scalability and expansion.