Chemed (CHE) 2026 Jefferies Healthcare Services and Technology Conference summary

State of the business and recent performance

• Second quarter results exceeded expectations, leading to increased guidance for the year.

• Roto-Rooter has stabilized despite higher marketing costs due to changes in Google's lead generation policies.

• VITAS is performing above expectations, rebounding from last year's Medicare cap exposure in Florida.

• Hospice business is highly predictable, supporting steady outlook.

Margin expansion and operational initiatives

• Margin gains at VITAS are driven by EHR rollout, labor management, and strategic planning.

• Guidance was raised twice due to strong operational execution and Florida expansion.

• Recent Florida CON awards have contributed significantly to margin expansion.

• New starts in Florida have created substantial cap cushion, supporting profitability.

Market outlook and demand trends

• Demographic trends, especially in Florida, support strong long-term hospice demand.

• By 2030, one in four Floridians will be over 65, boosting hospice opportunities.

• Longer hospice stays save money for Medicare, reinforcing the value proposition.