Chemed Corporation Bets Big on Florida & Digital—Will This Bold Strategy Pay Off?

Chemed Corporation’s second-quarter 2025 earnings highlight a mixed performance across its two major operating segments, VITAS and Roto-Rooter. For VITAS, the hospice care segment, admissions showed a 4.9% increase when adjusted for the prior year acquisition, but the overall business grappled with significant Medicare cap challenges, particularly in Florida. The Medicare cap billing limitations resulted in a $16.4 million hit during the quarter, attributed to a sharper than anticipated reimbursement rate hike in Florida compared to the national average. The company continues to adjust its patient mix towards short-stay patients to mitigate future caprelated financial liability, but this strategy has disrupted operational metrics and affected revenue growth and margins.