Florida-based VITAS Healthcare is anticipating fruitful hospice growth on its horizon. The Chemed Corp. (NYSE: CHE) subsidiary has seen record-highs in patient census volumes and is ramping up strategic plans to expand its geographic footprint across its home state.

Acquisitions and de novos will make up an important mix of VITAS’ expansion, Chairman and CEO Nick Westfall said in Thursday’s earnings call. The company is optimistic about future opportunities in the Southeast, executives indicated.

“We’ve demonstrated the ability to partner with and successfully integrate other providers through acquisitions to ensure communities continue to receive the best possible patient care,” Westfall said. “As a result of these efforts, VITAS achieved all-time highs in [average daily census (ADC)] growth, revenue growth, EBITDA growth and EBITDA margin. We are optimistic about the ability of VITAS to maintain above-average historical growth, both organically and through accretive acquisitions over the next few years.”

The company has seen nine sequential quarters of increased average daily census volumes, and 10 quarters of consecutive workforce growth, according to Westfall.

VITAS’ $411.0 million fourth quarter revenue saw a year-over-year increase of 17.4%. The hospice’s average daily census volume reached 22,179 patients in Q4, a 14.6% rise compared to the same period last year. Admissions also rose 3.5% to 16,427.

Hospice business results were in part impacted by hurricanes Helene and Milton, which affected communities across Florida and slowed admission growth in Q4 by approximately 150 to 175 patients.

VITAS’ adjusted EBITDA, excluding Medicare capitation rates, reached $93.2 million during the fourth quarter, seeing a 11.8% year-over-year increase.

The company’s $85 million acquisition of Covenant Health and Community Services in October 2024 has helped to fuel the company’s growth. The transaction included Covenant’s hospice assets and marked an important milestone for VITAS, including its entry into the assisted living space and in the Alabama market while expanding its geographic footprint across Florida.

VITAS cited “significant” operational activity in two out of the three Covenant Florida locations in its earnings report. All told, the Covenant acquisition contributed roughly $11–$12 million to its fourth quarter revenue.

Acquisitions have made up a smaller portion of VITAS’ strategic plans in recent years, with the company predominantly focused on organic growth through de novos.

The hospice provider is poised for expansion across the Sunshine State, recently receiving a certificate of need (CON) approval to enter Marion County, Florida. VITAS has launched plans to establish a new location in the area, which is home to a large retirement home community provider.

The company has been increasing its clinical workforce capacity to meet rising demand for hospice in Florida driven by demographic tailwinds, according to Chemed President and CEO Kevin McNamara

“VITAS is currently working on a time frame for opening the new location, but we believe this is another significant opportunity for growth in the coming years,” McNamara said during the earnings call. “We’re growing and adding staff, we continue to get new CONs. [VITAS] is a powerhouse in the best state. The last couple of years, we’ve gone through the seesaw of good breakthroughs with the pandemic. We’re getting back to what I think is a normalized operating situation.”