Chemed (CHE) Bank of America Home Care Conference summary

Growth outlook and industry trends

• Organic census growth exceeded 10% YTD, with 2025 volume growth expected in the 8–10% range, supported by nine quarters of net clinical capacity growth 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 and retention

• Staff growth is planned to match census growth, with a methodical, site-specific approach to expanding clinical capacity.

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

• Improved retention has reduced hiring needs, allowing for more selective recruitment and lower turnover.

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

M&A and growth strategy

• Appetite for further hospice acquisitions remains high, with a focus on strategic fit, cultural alignment, and targeted geographic expansion.

• M&A approach remains disciplined, prioritizing risk-adjusted returns and leveraging organizational strengths.

• De novo expansion continues, especially in CON states and California, as part of the growth formula.