Enhabit Inc.’s (NYSE: EHAB) hospice segment buoyed the company’s Q3 financial results amid losses in its home health business.

Also on Thursday, the company announced that Ryan Solomon will become its CFO effective Dec. 9, succeeding Crissy Carlisle.

Consistent sequential gains in Enhabit’s hospice average daily census (ADC), coupled with the Fiscal Year 2025 payment increase of 2.9% helped fuel that segment’s positive results. Hospice ADC rose 6.9% year-over-year to 3,622, up from 3,388 the prior year’s quarter.

“We are pleased with the continued progress of our hospice segment and anticipate continued growth,” CEO Barb Jacobsmeyer said in a Q3 earnings call. “Our priority has been on growing census and gaining operating leverage against the fixed cost structure associated with the case management staffing model. Our average daily census continues its sequential growth each month since January 2024.”

Admissions also increased for Enhabit’s hospice business — hitting 3,046 in Q3, up from 2,882 year-over-year.

Q3 net service revenue for the hospice segment reached $52.6 million, an 11% increase from $47.4 million in the prior year’s quarter. Meanwhile, the company’s home health revenue fell 4.7% to $201 million, down from $210.9 million in Q3 2023. This resulted in a 1.8% loss on a consolidated basis.

A range of factors contributed to the company’s hospice growth, according to Jacobsmeyer.

“We certainly increased the count of our business development team members so that we can cover more territory. It has been really focusing on using our data to develop the focus of business on where our sales team members are spending their time,” Jacobsmeyer said. “It’s really about diversifying those referral relationships so that you can manage and have you know your shorter and your longer length of stay and meet all the needs of the hospice patients in the community. So the team has done a great job building out that book of business.”

Enhabit also centralized its admissions operations, which has expedited start-of-care after referrals come in. The company operates 256 home health locations and 112 hospice locations across 34 states.

Going forward, the company is focused on its de novo strategy. Enhabit opened two new locations during 2024 and has three currently waiting for approval from the U.S. Centers for Medicare & Medicaid Services (CMS). Nine other de novos are also in the works.

Solomon, the company’s new CFO, brings more than 20 years of corporate strategy and finance experience to Enhabit. He previously served as CFO of AccentCare, where he was responsible for financial planning, accounting, tax, treasury, revenue cycle, corporate development and internal audit functions.

Most recently, he was CFO of Aspirion, a technology-enabled health care revenue cycle management provider.

“I have long admired the Enhabit team and the high-quality care they provide to their patients, and I am excited to join the company,” Solomon said in a statement. “Enhabit is at a pivotal point in its growth journey and is well-positioned to capitalize on the market opportunities ahead. I look forward to working with Barb and the rest of the leadership team to accelerate Enhabit’s mission of delivering high-quality and compassionate care to patients.”