Chemed (CHE) Bank of America Global Healthcare Conference 2026 summary

Hospice operations and regulatory environment

• Census growth outlook was raised due to improved management of referral balances and effective mitigation of the Medicare cap, especially in Florida.

• Real-time metrics and targeted selling resources help balance short and long length of stay patients, supporting sustainable growth.

• Proposed 2027 Medicare rate increase is 2.4% nationwide, with Florida likely seeing a lower increase near 1%.

• Incremental regulatory oversight, including the Service and Spending Variation Index, is expected, with industry input ongoing.

• Oversight is seen as an opportunity to gain referrals as trusted providers, provided patient access is not restricted.

Margin outlook and growth strategy

• Margin expansion is driven by balancing admission sources and focusing on longer length of stay patients, reducing cost per patient.

• ADC (average daily census) growth exceeded initial guidance, supporting both top-line and margin improvements.

• Sustainable census growth is targeted at 8%-10%, with 6%-8% from ADC and the remainder from reimbursement.

• Demographic trends, especially in Florida, support long-term growth opportunities.

Acquisition and expansion approach

• Acquisition opportunities are evaluated weekly, but high valuations have limited activity; de novo expansion is preferred for efficiency.

• Recent CON (certificate of need) approvals in Florida have outperformed expectations, with additional pending CONs in other states.

• Staffing for new locations is managed by entering markets fully staffed, avoiding unmet expectations.

• Selectivity in acquisitions is emphasized, focusing on referral networks and operational scale.