VITAS Healthcare reports strong Q3 growth despite cost concerns. November 2, 2026 Growth in admissions and patient revenue contributed to strong third quarter earnings for VITAS Healthcare, the nation's largest provider of hospice and palliative care services. But rising labor and fuel costs and challenges with the acuity mix caused a drag on the company's overall financial performance. VITAS, a subsidiary of Chemed Corp. which also owns Roto-Rooter, reported net patient revenue of $457.4 million for the third quarter of 2026, a 12% increase over the third quarter of 2025. Homecare revenue accounted for nearly $406 million of total net revenue for the quarter. VITAS reported quarterly net income of $70.8 million, excluding certain discrete items, an increase of 44.7% from the same period a year ago. "VITAS continues to perform at a very high level," Chemed President and CEO Kevin McNamara said in an earnings call last week. "The combination of ADC (average daily census) growth and cost containment particularly with respect to central support costs drove significant revenue and income growth at VITAS during the third quarter of 2026." VITAS revenue increase for the quarter was driven primarily by a 9.4% increase in total days of care and a geographically weighted average Medicare reimbursement rate increase of approximately 2.2%, according to Chemed's Chief Financial Officer Michael Witzeman. Changes in the patient acuity mix in the percentage of short-stay versus long-stay patients dampened overall revenue growth somewhat. "The acuity mix shift negatively impacted revenue growth 25 basis points in the quarter, when compared to the prior year revenue and level of care mix," he said. VITAS reported an average daily census of 24,428 for the quarter, representing a 9.4% increase over the same period last year. Admissions increased 7.2% to 18,955, reflecting growth in its home-based care, nursing home and inpatient care segments. Despite the overall positive outlook, VITAS Healthcare President and CEO Joel Wherley said the company continues to face wage pressures for hiring nursing staff like most other providers. "In regards to inflationary or wage pressure, I think everyone is experiencing an impact of the inflationary situation that we are facing nationally within the United States," he said during the earnings call. "That is no different in healthcare. However, it has not in any way impeded our ability to hire, and certainly not restricted our ability to grow across the organization." Meanwhile, Wherley said VITAS continues to closely monitor the federal government's increased focus on waste, fraud, and abuse, while also recognizing that a large percentage of hospice patients may be unaware of the Medicare benefits to which they are entitled. "We continue to support the government's oversight with program integrity and their desire to weed out fraudsters within the industry," he said. "One thing I want to comment on in that we are working very closely with CMS on this is that we want to change that narrative - from discussing waste, fraud, and abuse to access for those in need. Recognizing only a little over half of the Medicare deaths in the United States actually get the benefit from the Medicare hospice benefit. There is a lot of education still to be done and a lot of access that needs to be created." Overall, for both the VITAS and Roto Rooter subsidiaries, Chemed reported overall revenue of $691 million, a 10.6% increase in revenue growth for the quarter. Chemed's net income totaled $71.6 million for the quarter, compared to $64.2 million in the prior year's period. Net income for the Roto-Rooter segment declined 1.8% for the quarter year over year. Witzeman said recent acquisitions of Roto-Rooter franchises in California and Texas and rising fuel costs impacted Roto-Rooter's overall financial performance for the quarter and he expects high fuel costs will remain an issue going forward through at least the remainder of the year. "During the third quarter of 2026, fuel costs increased approximately $1.4 million compared to the third quarter of 2026," he said. "We anticipate both cost headwinds to persist in the fourth quarter."

LH Stock Hits record levels, CHE stock surges to over 52-week highs - Here's What's driving investor enthusiasm. Published: Oct 29 2026, 12:10 AM IST * FB * TW * Linkdin * Whatsapp * GNFollow Us Labcorp raised its FY2026 revenue and earnings forecasts following a Q3 beat, while Chemed attracted an analyst upgrade after its VITAS business drove Q3 earnings growth. * Labcorp's Q3 revenue rose 6.9% to $3.81 billion, while adjusted earnings jumped 14.5% to $4.78 per share. * Leerink raised LH's price target to $410 from $365, while maintaining an 'Outperform' rating, according to The Fly. * Jefferies upgraded Chemed after it posted a 10.6% increase in Q3 revenue to $690.9 million. Shares of Labcorp (LH) surged to record levels, while Chemed (CHE) shares jumped to over 52-week highs on Wednesday, fueled by stronger-than-expected third-quarter earnings and bullish Wall Street action. LH shares were up around 10.4% at the time of writing, while CHE stock gained 9%, reaching its highest level since June 2025. Labcorp raises FY2026 earnings guidance. Labcorp, which provides medical laboratory testing and diagnostic services, reported a 6.9% increase in third-quarter (Q3) revenue to $3.81 billion, beating Wall Street estimates of $3.76 billion, according to Fiscal.ai. Adjusted earnings per share increased 14.5% to $4.78 from $4.18, exceeding consensus estimates of $4.64. Labcorp expects full-year 2026 revenue growth of 5.9% to 6.7%, raising the midpoint of its previous forecast by 50 basis points. It also increased its adjusted earnings outlook to $18.30 to $18.70 per share, up $0.18 at the midpoint. The company ended the quarter with $261.8 million in cash and $5.85 billion in total debt. Following the results, Leerink raised its price target to $410 from $365 and maintained an 'Outperform' rating, according to The Fly. This is an 11.6% upside potential from current levels. Barclays also lifted the stock's price target to $380 from $330 while retaining an 'Equal Weight' rating. Retail sentiment surrounding LH on Stocktwits turned 'bullish' from 'neutral' over the past 24 hours, amid 'high' message volumes. The stock has gained about 46% so far in 2026. Jefferies upgrades Chemed after Q3 earnings beat. On Wednesday, Jefferies upgraded Chemed to 'Buy' from 'Hold' and raised its price target to $620 from $520, expecting improving profit margins and steadier earnings growth to support a higher valuation. Chemed, which operates hospice care provider VITAS and plumbing and drain-cleaning business Roto-Rooter, posted a 10.6% increase in Q3 revenue to $690.9 million on Tuesday. This beat Wall Street estimates of $685.8 million. Adjusted earnings per share jumped 28.1% to $6.75, exceeding expectations of $6.44. VITAS revenue increased by 12.2%, while Roto-Rooter sales climbed by 7.5%. BofA also raised the stock's price target to $555 from $550 but maintained a 'Neutral' rating. The firm said VITAS drove the earnings beat, while "Roto side of the business continues to miss." Retail sentiment surrounding CHE on Stocktwits remained 'bearish' over the past 24 hours, amid 'high' message volumes. The stock has gained about 30% so far this year. Also read: GMAB Stock Hits All-Time High After Genmab's Cancer Drug Trial Meets Primary Goals - Here's What Investors Need To Know For updates and corrections, email newsroom[at]stocktwits[dot]com.< Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business. 0 Comments / 0 New