Description

Chemed Corporation’s Hospice Growth Engine Is Rebuilding—Can VITAS Admissions and Census Momentum Keep Rising?

Chemed Corporation delivered a first quarter that was meaningfully supported by stronger-than-expected VITAS performance, while Roto-Rooter continued to show a more mixed recovery profile. VITAS exceeded internal expectations through stronger admissions, better average daily census growth and lower-than-budgeted labor costs. Admissions increased 6.9% year over year to 19,394, while average daily census rose 2.2% to 22,723. The company also added more than $32.5 million of Medicare Cap cushion in its Florida combined program during the quarter, reinforcing management’s view that the Florida cap issue from 2025 has been largely normalized. This was an important positive because it reduces a key overhang from the prior year and supports a more stable outlook for the hospice business. VITAS revenue increased 3.1% year over year to $420 million, helped by a 2.2% increase in days of care and a geographically weighted Medicare reimbursement increase of approximately 2.6%.