Chemed Corporation: The Covenant Health Acquisition Is A Game-Changing Move! 

Chemed Corporation’s financial performance for the fourth quarter of 2024 presents a mixed picture with both its hospice segment, VITAS Healthcare, and its plumbing business, Roto-Rooter, showing varied trends. During the quarter, VITAS continued to exhibit strong operating performance with admissions increasing by 3.5% year-over-year and its average daily census rising significantly by 14.6%. This growth was largely driven by the $85 million acquisition of Covenant Health, which contributed positively to the quarter. Despite this growth, the segment faced a Medicare cap situation that required mitigation tactics, particularly in larger markets like Florida. The guidance for 2025 suggests that VITAS expects sustained above-average growth, though tempered by Medicare cap limitations.