Chemed Corporation operates through two wholly owned, distinct subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS Healthcare, which accounts for approximately 64% of total revenue, is a leading provider of hospice and palliative care services in the United States. VITAS serves patients primarily in their homes, as well as in nursing homes, assisted living facilities, and its own inpatient hospice units, relying heavily on Medicare reimbursement. Roto-Rooter, generating the remaining 36% of revenue, is North America's largest provider of plumbing, drain cleaning, and water cleanup services. Roto-Rooter operates through a network of company-owned branches, independent contractors, and franchisees, serving both residential (about 71% of segment revenue) and commercial (25%) customers. Chemed's business model is characterized by decentralized operations, with the corporate holding company focusing on capital allocation, strategic planning, and financial reporting. The company benefits from the structural tailwinds of an aging US population driving demand for end-of-life care, alongside the urgent, non-discretionary nature of emergency plumbing and water restoration services, which provides strong pricing power and consistent cash flow generation.
