Q4 2024 Chemed Corp Earnings Call Transcript
Key Points
- Chemed Corp (CHE) reported a 3.5% increase in admissions and a 14.6% increase in average daily census for VITAS compared to the prior year.
- The acquisition of Covenant Health is meeting financial projections and contributed positively to revenue and net income.
- VITAS' net revenue increased by 17.4% in the fourth quarter of 2024, driven by a 14.6% increase in days of care and a Medicare reimbursement rate increase.
- Roto-Rooter's commercial revenue increased by 0.4%, and initiatives in the commercial sector are gaining momentum.
- Chemed Corp (CHE) is optimistic about growth opportunities in Florida with new programs in Pasco and Marion Counties, providing a strong growth path for VITAS.
- Roto-Rooter experienced a 2.9% decline in quarterly revenue compared to the prior year, with residential revenue declining by 2%.
- The acuity mix shift negatively impacted VITAS' revenue growth by 119 basis points in the quarter.
- Roto-Rooter's call volume was down 8% compared to the prior year quarter, indicating challenges in customer engagement.
- VITAS' adjusted EBITDA margin, excluding Medicare Cap, was 112 basis points below the prior year period.
- Chemed Corp (CHE) anticipates a Medicare cap billing limitation of $9.5 million in 2025, which may moderate growth.
Hello, and welcome to the Chemed Corporation fourth quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
It is now my pleasure to introduce Assistant Controller, Holley Schmidt.
Good morning. Our conference call this morning will review the financial results for the fourth quarter of 2024 ended December 31, 2024.
Before we begin, let me remind you that the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 applied to this conference call. During the course of this call, the company will make various remarks concerning management's expectations, predictions, plans and prospects that constitute forward-looking statements.
Actual results may differ materially from those projected by these forward-looking statements as a result of a variety of factors, including those identified in the company's news release of February 26, and in various other filings with the SEC. You are cautioned that
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