Chemed (CHE) RBC Capital Markets Global Healthcare Conference 2026 summary

Admission mix and growth strategy

• Admissions in 1Q 2026 exceeded 19,000, up 7%, with hospital-directed admissions up nearly 14% and non-hospital pre-admissions up 8.5% in Florida.

• Hospital admissions are targeted to remain between 42%-45% of total admissions annually, with fluctuations expected due to seasonality.

• Strategic focus on balancing hospital and non-hospital admissions to sustain long-term stability and support census growth, especially in the back half of 2026.

• New market entries in Florida, such as Manatee, Pasco, Marion, and Pinellas, are ramping up faster than expected, driven by full-scale launches and strong community engagement.

• Brand awareness in the Tampa metro area is benefiting surrounding markets, supporting growth and admissions.

CAP mitigation and financial outlook

• Achieved a $32.5 million CAP cushion in Florida in 1Q 2026, with no CAP liability accrued.

• New market starts contribute short length of stay patients, supporting CAP mitigation and enabling the intake of longer-stay patients.

• Guardrails and daily metrics are in place to manage CAP risk, leveraging historical data and improved KPIs.

• Margin targets for the back half of 2026 are 18%-18.5%, supported by a shift toward longer length of stay admissions and responsible census growth.

• Consolidation of Florida under one provider number allows flexibility to balance census and CAP across markets.

Expansion and operational initiatives

• New inpatient units are being developed in Port St. Lucie and Fort Myers, coming online in 2027, to support higher acuity, short-stay patients and further CAP mitigation.

• Inpatient units help absorb the sickest patients, providing CAP cushion for other admissions.

• Labor capacity is being scaled up, with hiring targets increased to 50-60 FTEs per month in response to accelerated census growth.

• No concerns reported in meeting labor demands or managing marginal compression as census grows.