Chemed's Vitas Healthcare Acquires Hospice Operations for $85 Million

Vitas Healthcare Corporation, a subsidiary of Chemed Corporation, has announced its acquisition of all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc. for a total purchase price of $85 million. This acquisition spans the panhandle of Florida and Alabama, covering markets in Tallahassee, Marianna, Fort Walton Beach, Panama City, Crestview, and Pensacola in Florida, as well as the Dothan and Mobile/Daphne markets in Alabama.

The transaction, which is structured as an asset purchase, is expected to close in the second quarter, subject to regulatory and other approvals. Following the acquisition, Vitas Healthcare's Chairman and CEO, Nick Westfall, expressed the organization's commitment to upholding Covenant Care's 44-year legacy of providing high-quality, patient-centered care, emphasizing the values of putting patients, families, and team members first.

Jeff Mislevy, President and CEO of Covenant Care, highlighted the significance of this acquisition in broadening and deepening the organization's focus on improving healthcare for the communities they serve, while also ensuring the delivery of world-class hospice and palliative care in collaboration with Vitas Healthcare.

Dr. Rodney Guttmann, Chairman of the Covenant Care Board of Directors, emphasized the board's excitement for the announcement, underscoring the opportunity to continue their mission of providing support for patient care and family grief, as well as to expand their reach and impact by supporting solutions across the healthcare continuum, with a special focus on behavioral health, pediatrics, and veteran care.

Chemed Corporation, listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio, operates two wholly owned subsidiaries: Vitas Healthcare and Roto-Rooter. Vitas is the nation's largest provider of end-of-life hospice care, while Roto-Rooter is the nation’s leading provider of plumbing and drain cleaning services.

This acquisition marks a significant development for Vitas Healthcare and Chemed Corporation, expanding their presence and service offerings in the hospice care sector across Florida and Alabama. As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $647.91. If you want to know more, read the company's complete 8-K report here.

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