Chemed Corporation Shines in Q1 2026 with Strong VITAS Healthcare Performance
Chemed Corporation, a leading provider of hospice and home health services through its subsidiary VITAS Healthcare, as well as plumbing and drain services through Roto-Rooter, has reported impressive financial results for the first quarter of 2026. The company's strong performance was driven by VITAS Healthcare's exceptional growth and improved efficiency, which exceeded even the high end of management's expectations.
In a conference call held on April 24th, Kevin McNamara, President and Chief Executive Officer of Chemed Corporation, highlighted the key highlights from the quarter. He noted that VITAS performance was particularly noteworthy, with admissions increasing by 6.9% compared to the same period in 2025. This growth was achieved while maintaining a high level of hospital-based admissions and keeping hospice labor costs lower than budgeted.
The company's success can be attributed to the strategic efforts of VITAS management, who were able to add Additional Daily Census (ADC) through accelerated admissions from non-hospital pre-admission locations. This was achieved while maintaining a balance between short stay and long stay patients, which is crucial for sustained long-term stability in the Florida patient base.
Admissions at VITAS during the quarter totaled 19,394, with hospital admissions making up 43.8% of total admissions. This aligns with the company's goal to achieve a balance between hospital and non-hospital admissions. Furthermore, admissions from all other pre-admission locations increased by 8.4% compared to the first quarter of 2025 in the Florida combined program.
The improved admissions led to VITAS outperforming expectations while adding over $32.5 million to cap cushion in the Florida combined program in the first quarter of 2026. This represents a significant milestone for the company, as it has put the Florida cap issue of 2025 behind us and has returned to a normalized rate of growth.
The success at VITAS Healthcare was complemented by Roto-Rooter's improved performance across multiple fronts. For the first time since the fourth quarter of 2022, residential plumbing and residential sewer and drain revenue both increased during the quarter. This is a very positive development for the company, as it drives add-on revenue from excavation and water restoration.
The increase in core residential service revenue was driven by an increase in total leads of 3%. This growth demonstrates the effectiveness of Roto-Rooter's strategies to improve its operating environment. Despite ongoing headwinds, the company remains confident that Roto-Rooter will continue to face and overcome challenges.
The strong performance at VITAS Healthcare and improved results at Roto-Rooter have positioned Chemed Corporation for continued growth and success in 2026. The company's commitment to delivering exceptional services while driving efficiency and innovation is a key factor in its sustained long-term stability.
