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Chemed: Expanding Hospice Reach Through Strategic Certificate Of Need Wins In Florida!

Chemed Corporation’s fourth-quarter results for 2025 presented a mixed financial picture characterized by challenges and strategies underway to address them. The company, comprising subsidiaries VITAS Healthcare Corporation and Roto-Rooter, faced operational hurdles leading to performance shortfalls, prompting adjustments and strategic shifts aiming for better results in the coming year. For VITAS, admissions surpassed expectations with a 6% year-over-year increase, driven largely by hospital-based admissions. However, this shift, designed to address Medicare Cap billing limitations in Florida, resulted in lower expected revenue and EBITDA margins due to the higher proportion of short-stay patients. Historically, such patients contribute less financially despite helping alleviate the aforementioned cap issues. Going forward, VITAS aims to rebalance its patient mix for improved financial outcomes.