Healthcare Facilities & Managed Care "1Q26 Post-Acute Care Recap: Another ..."

研报英文原文证据摘录

Healthcare Facilities & Managed Care "1Q26 Post-Acute Care Recap: Another ..."

Home Health & Hospice - Industry Faces Noise Related to CMS Moratoria

Announcement

Home Health and Hospice providers saw continued positive volumes in 1Q, although

some softness was noted due to weather related impacts. Home Health and Hospice

providers did see some share price pressure as a result of the CMS announcement that it

is putting a moratoria on new home health and hospice providers (see our note here) in

an effort to clamp down on fraud, waste, and abuse. However, we do not think this will

have an impact on the operations of providers within our coverage universe, as this

moratoria does not prohibit providers taking new patients, and instead is prohibiting the

licensing of new HHAs and hospice providers for Medicare. The moratoria appears to be

more targeting de novo growth as well, while companies like ADUS are more focused on

growing through M&A.

Deathcare - 1Q Funeral Volumes Weaker than Expected, but Looking for

Recovery as Year Progresses

SCI's 1Q results saw an EPS miss as funeral volumes in the quarter were much softer than

anticipated, coming in down 6% Y/Y. Pre-need cemetery sales production came in at a

healthy 9.7% Y/Y, allowing SCI to forecast cemetery production to be up in the

MSD range this year (up from prior guidance of LSD to MSD). A lot of the success in

preneed sales production is being driven by the large sales channel which saw a strong

1Q performance. Despite the slow start to the year for funeral volumes, SCI thinks it will

end the year down 1-3% in FY26, and gives it confidence it can hit the mid-point of its

original 2026 EPS guidance of $4.20, particularly if cemetery continues to perform well.

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