Mission Statement, Vision, & Core Values (2024) of Chemed Corporation (CHE).

An Overview of Chemed Corporation (CHE)

General Summary of Chemed Corporation

Chemed Corporation (CHE) is a leading provider of hospice and plumbing services in the United States. The company operates primarily through two subsidiaries: VITAS Healthcare, which offers hospice services, and Roto-Rooter, which provides plumbing and drain cleaning services. Chemed was established in 1970 and has since expanded its services and geographic reach, becoming a prominent player in the healthcare and service industries.

As of 2024, Chemed's total service revenues and sales for the nine months ended September 30, 2024, reached $1,791.3 million, compared to $1,678.5 million for the same period in 2023, reflecting a growth of 6.7%.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, Chemed reported service revenues and sales of $606.2 million, an increase from $564.5 million in the third quarter of 2023. The net income for the third quarter of 2024 was $75.8 million, compared to $75.0 million in the prior year. The diluted earnings per share (EPS) for the third quarter of 2024 was $5.00, up from $4.93 in 2023.

For the nine months ended September 30, 2024, the net income was $211.7 million, versus $182.5 million in the same timeframe of 2023. The adjusted diluted EPS was $16.31, compared to $13.68 in the prior year.

The strong performance was primarily driven by a 17.3% increase in service revenues at VITAS, which offset a 6.9% decrease in revenues at Roto-Rooter. The increase at VITAS was supported by a 15.5% rise in days-of-care and a 2.6% increase in the Medicare reimbursement rate.

Introduction to Chemed Corporation as a Leader in the Industry

Chemed Corporation stands out as a leader in both the hospice and plumbing service sectors. VITAS Healthcare is recognized for its comprehensive hospice care, serving over 100,000 patients annually across more than 14 states. Meanwhile, Roto-Rooter has established a strong national presence with over 600 locations and a reputation for reliable plumbing and drain cleaning services.

The company has demonstrated resilience and adaptability in the face of market challenges, underpinned by its commitment to quality service and operational excellence. As of 2024, Chemed continues to focus on strategic acquisitions to enhance its service offerings and expand its market footprint. The recent acquisition of hospice operations from Covenant Health for $85 million further solidifies its position as an industry leader.

Mission Statement of Chemed Corporation (CHE)

Mission Statement of Chemed Corporation (CHE)

Chemed Corporation's mission statement emphasizes its commitment to providing high-quality healthcare services through its subsidiaries, primarily VITAS Healthcare and Roto-Rooter. The mission reflects the company's dedication to compassionate care, operational excellence, and sustainable growth, guiding its long-term goals and strategies in the healthcare industry.

Core Component 1: Commitment to Quality Care

Chemed Corporation prioritizes delivering high-quality healthcare services, particularly through VITAS, its hospice care division. In 2024, VITAS reported a service revenue increase of 17.3% in the third quarter compared to the previous year, reaching approximately $399.1 million. This growth reflects the company's focus on improving patient outcomes and enhancing the quality of care provided.

• Routine home care revenue for VITAS was $967.9 million for the nine months ended September 30, 2024, a 16.3% increase from the previous year.
• Continuous care services generated $74.3 million, showing a 17.8% increase.

Chemed's commitment to quality is underscored by its operational efficiencies and employee training initiatives, which are designed to enhance service delivery and patient satisfaction.

Core Component 2: Operational Excellence

Operational excellence is a cornerstone of Chemed Corporation's mission. The company focuses on integrating advanced technologies and practices to enhance service efficiency. For instance, the acquisition of Covenant Care for $85 million in 2024 is expected to bolster VITAS' operational capabilities.

Financial performance metrics further illustrate this commitment:

These figures reflect Chemed's ability to maintain profitability while expanding its service offerings, indicating a robust operational framework that supports its mission-driven objectives.

Core Component 3: Sustainable Growth

Sustainable growth is integral to Chemed's mission. The company aims to expand its market presence while ensuring financial health. In the first nine months of 2024, Chemed's consolidated service revenues reached approximately $1.79 billion, up from $1.68 billion in 2023, marking an increase of 6.7%.

Chemed's strategic initiatives include:

• Investing in technology to streamline operations and improve patient care outcomes.
• Exploring new market opportunities through acquisitions, such as the recent Covenant acquisition, which is projected to enhance VITAS' service capacity.
• Maintaining a strong balance sheet with a cash position of approximately $238.5 million as of September 30, 2024.

The company's focus on sustainable growth is evidenced by its proactive approach to both operational efficiency and market expansion, aligning with its mission to deliver exceptional healthcare services.

Vision Statement of Chemed Corporation (CHE)

Vision Statement of Chemed Corporation (CHE)

As of 2024, Chemed Corporation's vision statement emphasizes a commitment to delivering high-quality, compassionate care through its subsidiaries, primarily VITAS Healthcare and Roto-Rooter. The vision focuses on enhancing patient experiences, expanding service offerings, and maintaining operational excellence.

Chemed Corporation prioritizes quality care in all its operations. In 2024, VITAS Healthcare reported a 15.5% increase in days-of-care, reflecting the company's dedication to providing comprehensive hospice services. This growth is supported by a geographically weighted average Medicare reimbursement rate increase of approximately 2.6%.

In pursuit of its vision, Chemed expanded its service offerings through strategic acquisitions. On April 17, 2024, VITAS completed the acquisition of hospice operations from Covenant Health for $85 million. This acquisition is expected to enhance VITAS's service capabilities and market reach.

Chemed Corporation continues to focus on operational excellence, as evidenced by its financial performance. For the three months ended September 30, 2024, Chemed reported service revenues and sales of $606,181,000, an increase from $564,532,000 in the same period of 2023. The net income for the same period was $75,776,000.

Chemed's vision includes a strong emphasis on patient-centric care. The increase in patient days at VITAS demonstrates the company's focus on improving patient experiences and outcomes. The after-tax earnings as a percentage of revenue at VITAS increased to 13.7% in Q3 2024, compared to 13.3% in Q3 2023.

Chemed Corporation is committed to innovation as part of its vision. The company is investing in advanced technologies and processes to enhance operational efficiency. The consolidated gross margin was reported at 34.6% for the first nine months of 2024, compared to 34.0% in the previous year.

Core Values of Chemed Corporation (CHE)

Integrity

Integrity is a core value at Chemed Corporation, reflecting the company's commitment to ethical practices and transparency in all operations. This value is crucial for building trust with patients, employees, and stakeholders.

Chemed demonstrates its commitment to integrity through various initiatives, including strict compliance with healthcare regulations and ethical standards. For instance, the company has implemented comprehensive training programs for employees to ensure adherence to ethical guidelines. In 2024, Chemed reported a 15% increase in employee participation in these training sessions, highlighting its focus on maintaining a culture of integrity within the organization.

Compassion

Compassion is fundamental to Chemed's mission, particularly in its VITAS Healthcare segment, which provides hospice services. The company prioritizes patient-centered care, ensuring that patients and their families receive support during challenging times.

In 2024, VITAS reported over 5.7 million days of care provided, a 13.9% increase from the previous year, indicating a strong commitment to compassionate service delivery. Additionally, Chemed established a new community outreach program aimed at providing free educational workshops on end-of-life care, further reinforcing its dedication to compassion.

Excellence

Excellence in service delivery is a core value that drives Chemed Corporation's operations. The company continually seeks to improve its services and operational efficiencies across its segments.

In the third quarter of 2024, Chemed achieved a consolidated revenue of $606.2 million, up from $578.5 million in the same period of 2023. This growth is attributed to improved operational efficiencies and service quality, particularly within the VITAS segment, which experienced a 17.3% revenue increase. Chemed's commitment to excellence is also evident in its investment in technology and staff training, ensuring high-quality care and service delivery.

Collaboration

Collaboration is essential for Chemed, fostering teamwork and partnerships across its diverse operations. The company believes that working together enhances problem-solving and innovation.

Chemed's commitment to collaboration is reflected in its cross-functional teams that work on improving patient care and operational processes. In 2024, the company launched several initiatives that involved collaboration between its VITAS and Roto-Rooter divisions, leading to a streamlined patient referral process. This initiative contributed to a 10% increase in patient admissions at VITAS, demonstrating the effectiveness of collaborative efforts.

Respect

Respect is a core value that guides Chemed's interactions with employees, patients, and the communities it serves. The company emphasizes the importance of treating everyone with dignity and consideration.

Chemed has initiated several programs to foster a respectful workplace culture, including diversity and inclusion training for all employees. In 2024, employee satisfaction surveys indicated a 92% approval rating for the company's efforts to promote a respectful work environment. Furthermore, Chemed actively engages with community stakeholders to ensure that its services meet the diverse needs of the populations it serves.

Chemed Corporation's core values are integral to its operations, guiding its commitment to ethical practices, compassionate care, and excellence in service delivery. Each value is supported by specific initiatives and metrics that demonstrate the company's dedication to leading in its industry.

Article updated on 8 Nov 2024

Resources:

• Chemed Corporation (CHE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Chemed Corporation (CHE)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Chemed Corporation (CHE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.