* Hospice unit gets U.S. DoJ subpoena
* DoJ asks for hospice-service related documents
* Shares drop 10 pct
May 14 (Reuters) - Hospice-care provider Chemed Corp (CHE.N) said its VITAS unit received an administrative subpoena from the U.S. Department of Justice, asking for documents, patient records, and policy and procedure manuals since 2003.
Shares of the company fell 10 percent in after-hours trade on the New York Stock Exchange, from their Thursday’s close of $41.20.
The company, which also provides plumbing services under the Roto-Rooter brand, said it cannot predict the outcome of the investigation or the impact it may have on its business.
However, Chemed believes it is in material compliance with the rules and regulations applicable to the Medicare and Medicaid hospice program, the company said in a regulatory filing.
The company was also recently urged by a shareholder to separate its hospice and plumbing businesses, but Chemed responded that a separation of the Roto-Rooter and VITAS businesses was not in the shareholders’ interest during the global economic downturn. (Reporting by Esha Dey in Bangalore; Editing by Anil D’Silva)