An influx of referrals in the West has brought VITAS Healthcare increased revenue and patient census volumes in the third quarter.
The growth in the western United States is in part due to program integrity issues in the region, which have led families to seek legitimate providers.
The Chemed Corp. (NYSE: CHE) subsidiary has prioritized clinical recruitment amid census growth in recent months, according to Joel Wherley, president and CEO of VITAS Healthcare.
Staff satisfaction and retention have been key to sustainable growth, Wherley said during a recent earnings call.
“To address continued [average daily census (ADC)] growth, we ramped up hiring in September 2026,” Wherley said. “We monitor each location very carefully and ensure that staffing is adequate to provide high-quality care for our patients and their families, as well as maintaining a healthy work-life balance for our caregivers. High admissions in both hospital and non-hospital settings allow us to responsibly grow revenue while also balancing the patient mix needed to managed the Medicare cap.”
VITAS is the second largest providers in the United States by Medicare claims, according to Hospice News’ Hospice Top 50 report. Founded in 1978, the Miami-based company provides hospice and palliative care across 15 states and in Washington D.C.
During Q3 2026, VITAS’ overall revenue reached $457.4 million, rising 12.2% compared to the prior year. The company attributed the revenue growth in part to a 9.4% year-over-year increase in average daily census during the third quarter, as well as a rise in patient admissions by 7.2%. VITAS Healthcare’s adjusted EBITDA hovered around $92.5 million.
The company’s organic growth opportunities have been recently stymied amid a temporary national moratorium on Medicare hospice enrollment, according to Wherley. The hospice provider has shifted more of its recent attention toward acquisitions
The U.S. Centers for Medicare & Medicaid Services’ (CMS) temporary national moratoria on Medicare hospice and home health enrollment are set to expire Nov. 13. The moratoria are designed to stop fraudsters from entering hospice as some states saw increasing program integrity issues.
California is among the fraud hotbed states. VITAS has seen an influx of hospice patient referrals in the state’s southern region amid the regulatory crackdown, according to Wherley. The company’s patient census volumes are also rising in its home state.
Patients and their families often lack awareness about hospice, which has exacerbated the program integrity issues, Wherley indicated. Greater public and community education efforts are part of improving access and hospice growth, he stated.
“Have we seen an increase specific to any concerns associated with waste, fraud and abuse?” Wherley said. “We continue to see strong growth in Florida and specifically in southern California. We do believe there is a migration toward a more stable, trusted partner as it comes to end-of-life care in those markets. We have benefited from that. We want to change the narrative from discussing waste, fraud and abuse to access for those in need.”
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