Chemed (CHE) Bank of America Home Care Conference summary

Growth outlook and industry trends

• Organic census growth exceeded 10% YTD, with expectations of 8–10% volume growth in 2025, supported by nine quarters of net clinical capacity expansion and strong demand.

• Anticipated price increase in October 2025 is expected to drive low double-digit top-line growth.

• Demographic tailwinds from the aging baby boomer population are projected to support 8–10% annual industry growth over the next decade, with Florida likely outpacing the national average.

• Increased awareness and earlier adoption of hospice care, accelerated by the pandemic, are expected to improve patient outcomes and reduce Medicare costs.

Staffing, retention, and culture

• Staff growth will match census growth, with a methodical approach to expanding clinical capacity and a focus on high-quality care.

• New hires come from competitors, workforce reentry, and increasingly younger clinicians, reflecting a shift in industry perception.

• Improved retention has reduced hiring needs, allowing for greater selectivity and stability in workforce planning.

• Retention gains are attributed to competitive compensation, enhanced benefits, and a strong, locally empowered culture.

M&A and expansion strategy

• Appetite for acquisitions remains high, with a focus on strategic, culturally aligned targets in attractive states, especially Florida.

• M&A approach is methodical, prioritizing fit and risk-adjusted returns over rapid expansion.

• De novo growth continues, particularly in CON states, with recent openings in Florida and California.