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Roto-Rooter

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About Roto-Rooter

Chemed Corporation brings a professional dignity to times of transition and sewer line clogs. Operating through two major subsidiaries, Chemed offers hospice care to terminally ill patients through its VITAS Healthcare subsidiary which operates in some 15 US states. VITAS employs doctors, nurses, and other professionals to provide at-home and inpatient – more... services in care facilities. Chemed's better-known Roto-Rooter subsidiary offers plumbing and drain-cleaning services for residential and commercial customers through company-owned, contractor-operated, and franchised locations, some 500 total. A stalwart of the industry, Roto-Rooter offers services throughout the US and in parts of Canada.

Financial Analysis

In company's revenue was increased by 6% due to an increase in VITAS' revenues resulting from an increased average daily census of 5.5% driven by an increase in admissions of 2.8%, combined with Medicare price increases of 2.1%, and an increase in revenues from Roto-Rooter thanks to increase in plumbing and sewer and drain cleaning due to a rise in the number of jobs performed and an increase in the average price per job. 

Chemed's net income increased by 5% thansk to higher revenues offset by an increase in expenses.

Strategy

In a darkly peculiar inversion, the drain cleaning industry, while steady, is considered mature or somewhat stagnant, while hospice and end-of-life care are considered a growth industry. Thus Chemed's two unrelated units balance one another, with VITAS accounting for 73% of the company's revenues in 2011.

VITAS gets some 90% of its revenues from Medicare and Medicaid program payments. Chemed's health care growth strategy revolves around expanding into new markets by establishing new hospice organizations and gaining Medicare and Medicaid certifications in new areas. After a lull in acquisitions, in 2011 VITAS purchased Family Comfort Hospice and its three locations in Alabama.

Chemed has long-held ties to institutional pharmacy provider Omnicare. Omnicare was spun off from Chemed in 1981 and in states where both companies are present, Omnicare provides VITAS with pharmacy services.

Roto-Rooter gets its revenues from individual and corporate clients and franchising fees. In addition to Canada and the US, Roto-Rooter has international franchises in countries including Indonesia, Japan, the Philippines, and Singapore. While franchises outnumber company-owned locations, in recent years Roto-Rooter has begun buying back franchises in order to consolidate its operations in some regions.

Ownership

In 2012 FMR LLC owned 10.9% of Chemed.

Company Background

Roto-Rooter was founded in 1935 and sold to Chemed Corporation in 1980. A minister and a nurse formed VITAS in 1978 -- originally as an all-volunteer non-profit organization. Chemed acquired VITAS in 2004. Chemed and Omnicare both grew out of an earlier chemical company: Dubois Chemicals. Even though Chemed sold the remainders of its DuBois Chemicals holdings in 1991, it remains partially liable for any potential environmental cleanup costs arising from that business.  – less

Roto-Rooter Employer Reviews

Employee (Former Employee), MIJanuary 5, 2015
Office/Dispatch Manager (Current Employee), Berlin, CTDecember 2, 2014
Dispatcher/Customer Service Rep (Current Employee), Livonia, MINovember 15, 2014
Plumber Technician (Former Employee), Silver City, NMAugust 13, 2014
SERVICE TECHNICIAN (Former Employee), Granite City, ILAugust 3, 2014

Roto-Rooter Salaries