January 29, 2015 10:00 AM ET

Healthcare Providers and Services

Company Overview of VITAS Hospice Services, LLC

Company Overview

VITAS Hospice Services, LLC provides end-life care hospice services. The company cares for terminally ill patients primarily in the patients' homes and inpatient hospice units, as well as in hospitals, nursing homes, and assisted living communities/residential care facilities. The company operates hospice programs in California, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Kansas, Michigan, Missouri, New Jersey, Ohio, Pennsylvania, Texas, Virginia, and Wisconsin. The company was incorporated in 2001 and is based in Miami, Florida. VITAS Hospice Services, LLC operates as a subsidiary of Chemed Corp.

100 South Biscayne Boulevard

Suite 1300

Miami, FL 33131

United States

Founded in 2001

Phone:

305-374-4143

Fax:

305-350-6797

Key Executives for VITAS Hospice Services, LLC

Chief Executive Officer
Age: 58
President
Age: 54
Co-Founder
Age: 66
Chief Operating Officer and Executive Vice President
Compensation as of Fiscal Year 2014.

VITAS Hospice Services, LLC Key Developments

VITAS Hospice Services, L.L.C. Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Earnings Guidance for the Full Year 2013

VITAS Hospice Services, L.L.C. reported unaudited earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported that net revenue was $254 million, which is a decline of 5.2% when compared to the prior-year period. This revenue decline is a combination of Medicare reimbursement rates decreasing approximately 1.1%, ADC that was essentially equal to the prior year, a Medicare billing adjustment of $3.2 million and level of care mix shift. This shift in level of care negatively impacted revenue approximately $6 million in the quarter. Adjusted EBITDA, excluding Medicare Cap, totaled $40.5 million in the quarter, an increase of 1.8% over the prior-year period. Net income was $14.608 million compared to $21.940 million a year ago. EBITDA was $28.781 million compared to $40.340 million a year ago. Adjusted EBITDA was $37.314 million compared to $39.774 million a year ago. Income from operations was $22.394 million compared to $34.547 million a year ago. Income before income taxes was $23.650 million compared to $34.456 million a year ago. For the nine months, the company reported service revenues and sales of $788.896 million compared to $794.050 million a year ago. Income from operations was $85.615 million compared to $97.762 million a year ago. Income before income taxes was $89.288 million compared to $100.079 million a year ago. Net income was $55.237 million compared to $61.999 million a year ago. EBITDA was $104.576 million compared to $114.255 million a year ago. Adjusted EBITDA was $112.567 million compared to $112.317 million a year ago. The company estimates its full-year 2013 revenue will continue to be constrained in the fourth quarter of 2013. This is a result of mix shift from high acuity care to routine home care. Full-year 2013 revenue, prior to Medicare Cap, is estimated to be approximately 1% below the prior year. Admissions in 2013 are estimated to decline approximately 3% and full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 14.5% to 15.0%. Medicare Cap is estimated to be $1.8 million in the fourth quarter of 2013.

VITAS Innovative Hospice Care Promotes Bruce Davis to Senior General Manager of VITAS Innovative Hospice Care in East Bay

Bruce Davis has been promoted to senior general manager of VITAS Innovative Hospice Care in East Bay, Calif. He joined the group in 2008 as general manager. He formerly served as regional director of operations for HCR ManorCare covering Kansas, Missouri and Colorado.

United States Files False Claims Act Lawsuit Against Chemed Corporation and Vitas Hospice Services LLC and Vitas Healthcare Corporation

The United States has filed suit against Chemed Corporation and various wholly owned hospice subsidiaries, including Vitas Hospice Services LLC and Vitas Healthcare Corporation, alleging false Medicare billings for hospice services. The government's complaint alleges that Chemed and Vitas Hospice knowingly submitted or caused the submission of false claims to Medicare for crisis care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements. According to the complaint, the companies set goals for the number of crisis care days that were to be billed to Medicare. The companies also allegedly used aggressive marketing tactics and pressured staff to increase the numbers of crisis care claims submitted to Medicare, without regard to whether the services were appropriate or were actually being provided. In addition, the government's complaint alleges that Chemed and Vitas knowingly submitted or caused the submission of false claims for hospice care for patients who were not terminally ill. The companies allegedly paid bonuses to staff based on the number of patients enrolled in the program and based on patients who were admitted for longer lengths of stay, and took adverse employment actions against marketing representatives who did not meet monthly hospice admissions goals. According to the Complaint, these business practices resulted in the admission of patients who were not eligible for hospice care. The Complaint alleges that Vitas admitted a patient to hospice who showed no signs of a terminal condition and was described in Vitas' own records as, 'very healthy given her age.' As a result of the conduct alleged in the complaint, the government contends that Chemed and Vitas violated the False Claims Act and misspent tens of millions of taxpayer dollars from the Medicare program.

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