Direct Answer
10 SEC filers are classified under the Standard Industrial Classification codes that describe the hospice industry, and their latest annual reports show $31.7 billion of combined revenue and a median operating margin of 6.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Hospice providers deliver end-of-life care in homes and facilities and are paid a daily rate by Medicare and other payers. Census, length of stay and the cost of clinicians drive profit, with regulatory caps on payments. The first numbers to compare across companies here are average daily census, length of stay and revenue per patient day.
Key Industry Metrics
- Average daily census: Average number of patients under care each day. It is the core volume measure, because payment is a daily rate.
- Length of stay: Average days a patient remains in hospice. Very short stays raise admission costs per day, and very long stays push against Medicare caps.
- Revenue per patient day: Average payment per day of care. It is set by Medicare rates and level of care, so changes mostly follow payment updates.
- Labor cost: Clinician and aide expense, the largest cost. Compare it with census, since staffing must scale with patients to maintain care.
- Medicare cap exposure: Risk that aggregate payments exceed annual limits and must be repaid. Higher exposure signals possible revenue clawback, especially for providers with long stays.
Primary Macro Drivers
- Aging and mortality: An aging population leads to more deaths and eligible patients, which supports admissions and average daily census.
- Medicare rate updates: Medicare sets the daily payment, so annual updates move revenue per patient day and margin directly.
- Referral relationships: Physicians and hospitals decide when patients are referred, so strong relationships raise admissions and length of stay.
- Palliative care adoption: Wider acceptance of palliative care leads to earlier referrals, which can lengthen stays and raise census.
Major Risks
- Medicare reimbursement and caps: Lower daily rates or limits on total payments reduce revenue and margin; watch final payment rules and Medicare cap exposure.
- Regulatory investigations: Reviews of eligibility and length of stay can lead to repayments and penalties; watch legal proceedings and reserves.
- Labor shortages: Nurses, aides and social workers are scarce, so wage pressure raises cost per patient day; watch labor cost and census.
- Referral dependence: Admissions rely on referring doctors and hospitals, so losing a source cuts census quickly; watch referral mix.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | Low |
| Regulatory Intensity | High |
| Industry Maturity | Growth |
| Geographic Importance | U.S. |
Hospice Filers in the SEC Record
10 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 8082, 8090. Their latest fiscal years end between 2025 and 2026, and together they reported $31.7 billion of revenue. Median revenue growth over the prior year was 4.9%. Median operating margin was 6.0% and median net margin 0.0%. Median total liabilities were 81% of total assets, and 6 of 10 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Davita Inc. | $13.6 billion | 6.5% | 15.0% | 7.9% | FY 2025 |
| Agilon Health, Inc. | $5.9 billion | -2.1% | -7.8% | -6.6% | FY 2025 |
| Option Care Health, Inc. | $5.6 billion | 13.0% | 6.0% | 3.7% | FY 2025 |
| Chemed Corp | $2.5 billion | 4.1% | 13.4% | 0.0% | FY 2025 |
| Aveanna Healthcare Holdings, Inc. | $2.4 billion | 20.2% | 10.5% | 0.0% | FY 2026 |
| Sotera Health Co | $1.2 billion | 5.7% | n/a | 6.7% | FY 2025 |
| Viemed Healthcare, Inc. | $270 million | 20.5% | 8.5% | 5.7% | FY 2025 |
| Cryo Cell International Inc | $32 million | -1.3% | 1.5% | -7.7% | FY 2025 |
The 8 largest of 10 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Hospice guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Hospice industry?
Key performance indicators for the Hospice industry include: Average daily census, Length of stay, Revenue per patient day, Labor cost, Medicare cap exposure. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Hospice industry?
The Hospice industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.
What are the biggest risks in the Hospice industry?
The primary risks for Hospice companies include: Medicare reimbursement and caps, Regulatory investigations, Labor shortages, Referral dependence. Investors should assess each company's exposure to these factors and its track record of navigating them.