# EDGAR Filing Document

**Accession Number:** 0000019584
**File Stem:** 0001562762-26-000020
**Filing Date:** 2026-2
**Character Count:** 509398
**Document Hash:** ec6dd34acfe71121a38d4a0dd8eb1668
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001562762-26-000020.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001562762-26-000020

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 129

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHEMED CORP
- **CENTRAL INDEX KEY:** 0000019584
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-HOME HEALTH CARE SERVICES [8082]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 310791746
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08351
- **FILM NUMBER:** 26693221

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 2600
- **STREET 2:** 255 E FIFTH ST
- **CITY:** CINCINNATI
- **STATE:** OH
- **ZIP:** 45202
- **BUSINESS PHONE:** (513)762-6690

**MAIL ADDRESS:**
- **STREET 1:** SUITE 2600
- **STREET 2:** 255 E FIFTH STREET
- **CITY:** CINCINNATI
- **STATE:** OH
- **ZIP:** 45202-4726

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ROTO-ROOTER INC
- **DATE OF NAME CHANGE:** 20030613

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CHEMED CORP
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? che-20251231x10k

M

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

# FORM 10-K

### 🗹 &nbsp;&nbsp;&nbsp;&nbsp;ANNUAL REPORT
**PURSUANT TO SECTION 13 OR 15(d) OF**

## THE SECURITIES EXCHANGE ACT OF 1934
**For the fiscal year ended December 31, 2025**

◻**&nbsp;&nbsp;&nbsp;&nbsp;Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**For the Transition Period from** ________ **to**________

#### Commission File Number: 1-8351

##### CHEMED CORPORATION
(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| Delaware(State or other jurisdiction of<br>incorporation or organization)<br>Suite 2600, 255 East Fifth Street, Cincinnati, Ohio<br>(Address of principal executive offices) | **31-0791746**<br>(I.R.S. Employer<br>Identification Number)<br>45202-4726<br>(Zip Code) |

---

(513) 762-6690

(Registrant's Telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | |
|:---|:---|
| Title of Each Class | Name of each exchange on which registered |
| Capital Stock – Par Value $1 Per Share <br> CHE | New York Stock Exchange |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.&nbsp;&nbsp;&nbsp;&nbsp; Yes&nbsp;&nbsp;&nbsp;&nbsp;🗹&nbsp;&nbsp;&nbsp;&nbsp; No ◻

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes&nbsp;&nbsp;&nbsp;&nbsp;◻&nbsp;&nbsp;&nbsp;&nbsp; No 🗹

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 🗹&nbsp;&nbsp;&nbsp;&nbsp; No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes 🗹&nbsp;&nbsp;&nbsp;&nbsp; No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company. See definition of "accelerated filer, large accelerated filer, smaller reporting company and emerging growth company" in Rule 12b-2 of the Exchange Act.

(Check One): Large Accelerated Filer 🗹 Accelerated Filer ◻ Non-accelerated Filer ◻ Smaller Reporting Company ◻

Emerging Growth Company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. 🗹

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ◻

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b) ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ◻&nbsp;&nbsp;&nbsp;&nbsp; No 🗹

The aggregate market value of the voting stock held by non-affiliates of the registrant, based upon the closing price of said stock on the New York Stock Exchange – Composite Transaction Listing on June 30, 2025 ($486.93 per share), was $7,010,301,507.

On February 10, 2026, 13,765,136 shares of Chemed Capital Stock (par value $1 per share) were outstanding.

## DOCUMENTS INCORPORATED BY REFERENCE

---

| | |
|:---|:---|
| **Document** | **Where Incorporated** |
| 2025 Annual Report to Stockholders (specified portions)<br>Proxy Statement for Annual Meeting to be held May 18, 2026 | Parts I, II, and IV<br>Part III |

---

------

## **CHEMED CORPORATION** 
**2025 FORM 10-K ANNUAL REPORT**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| **PART I** |  |  |
| [<u>Item 1.</u>](#Item1Business) | [<u>Business</u>](#Item1Business) | 1 |
| [<u>Item 1A</u>](#Item1ARiskFactors) | [<u>Risk Factors</u>](#Item1ARiskFactors) | 13 |
| [<u>Item 1B.</u>](#Item1BUnresolvedStaffComments) | [<u>Unresolved Staff Comments</u>](#Item1BUnresolvedStaffComments) | 21 |
| [<u>Item 1C</u>](#Item1CCybersecurity) | [<u>Cybersecurity</u>](#Item1CCybersecurity) | 21 |
| [<u>Item 2.</u>](#Item2Properties) | [<u>Properties</u>](#Item2Properties) | 22 |
| [<u>Item 3.</u>](#Item3LegalProceedings) | [<u>Legal Proceedings</u>](#Item3LegalProceedings) | 23 |
| [<u>Item 4.</u>](#Item4MineSafetyDisclosures) | [<u>Mine Safety Disclosures</u>](#Item4MineSafetyDisclosures) | 23 |
| **PART II** |  |  |
| [<u>Item 5.</u>](#Item5MarketEquitySecurities) | [<u>Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</u>](#Item5MarketEquitySecurities) | 24 |
| [<u>Item 6.</u>](#Item6Reserved) | [<u>Reserved</u>](#Item6Reserved) | 28 |
| [<u>Item 7.</u>](#Item7MDAA) | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#Item7MDAA) | 28 |
| [<u>Item.7A.</u>](#Item7AQuantitativeQualitative) | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#Item7AQuantitativeQualitative) | 28 |
| [<u>Item 8.</u>](#Item8FinancialStatementsandData) | [<u>Financial Statements and Supplementary Data</u>](#Item8FinancialStatementsandData) | 28 |
| [<u>Item 9.</u>](#Item9ChangesandDisagreements) | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#Item9ChangesandDisagreements) | 28 |
| [<u>Item 9A.</u>](#Item9AControlsandProcedures) | [<u>Controls and Procedures</u>](#Item9AControlsandProcedures) | 28 |
| [<u>Item 9B.</u>](#Item9BOtherInformation) | [<u>Other Information</u>](#Item9BOtherInformation) | 28 |
| [<u>Item 9C.</u>](#Item9CDisclosureForeignJurisdictions) | [<u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</u>](#Item9CDisclosureForeignJurisdictions) | 29 |
| **PART III** |  |  |
| [<u>Item 10.</u>](#Item10DirectorsExecutiveOfficersCorporat) | [<u>Directors, Executive Officers and Corporate Governance</u>](#Item10DirectorsExecutiveOfficersCorporat) | 30 |
| [<u>Item 11.</u>](#Item11ExecutiveCompensation) | [<u>Executive Compensation</u>](#Item11ExecutiveCompensation) | 30 |
| [<u>Item 12.</u>](#Item12SecurityOwnership) | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#Item12SecurityOwnership) | 30 |
| [<u>Item 13.</u>](#Item13CertainRelationships) | [<u>Certain Relationships and Related Transactions and Director Independence</u>](#Item13CertainRelationships) | 30 |
| [<u>Item 14.</u>](#Item14PrincipalAccountantFees) | [<u>Principal Accountant Fees and Services</u>](#Item14PrincipalAccountantFees) | 30 |
| **PART IV** |  |  |
| [<u>Item 15.</u>](#ExhibitsandFinStatementSchedules) | [<u>Exhibits and Financial Statement Schedules</u>](#ExhibitsandFinStatementSchedules) | 32 |
| [<u>Item 16.</u>](#Item16Form10KSummary) | [<u>Form 10-K Summary</u>](#Item16Form10KSummary) | 34 |

---

------

**Item 1. Business**

**General**

Chemed Corporation (the "Company" or "Chemed") was incorporated in Delaware in 1970 as a subsidiary of W.R. Grace & Co. and succeeded to the business of W.R. Grace & Co.'s Special Products Group as of April 30, 1971 and remained a subsidiary of W.R. Grace & Co. until March 10, 1982.

Chemed purchases, operates and divests subsidiaries engaged in diverse business activities for the purposes of maximizing shareholder value. The Company's day to day operating businesses are managed on a decentralized basis. There are few integrated business functions between the operating units and Chemed (such as sales, marketing or purchasing). Chemed's corporate office management participates in and is ultimately responsible for long term strategic planning, significant capital allocation decisions, investment activities, financial reporting, tax, legal and the selection of the key executives of each of the operating businesses. Since its inception, the Company has engaged in twelve significant acquisitions or divestitures of diverse business units.

During 2025, Chemed conducted its business operations in two segments: the VITAS segment ("VITAS") and the Roto-Rooter segment ("Roto-Rooter"). VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. Roto-Rooter provides plumbing, drain cleaning, excavation, water restoration and other related services to residential and commercial customers.

**Forward Looking Statements**

**Financial Information about Industry Segments**

The required segment and geographic data for the Company's continuing operations (as described below) for three years ended December 31, 2023, 2024 and 2025 are shown in Note 5 of the Notes to Consolidated Financial Statements on pages 59-62 of the 2025 Annual Report to Stockholders and are incorporated herein by reference.

**Description of Business by Segment**

The information called for by this item is included within Note 5 of the Notes to Consolidated Financial Statements appearing on pages 59-62 of the 2025 Annual Report to Stockholders is incorporated herein by reference.

**Product and Market Development**

Each segment of the Company's business analyzes opportunities for the development and marketing of new services and products. While new products and services and new market development are important factors for the long term growth of each active segment of the Company's business, the Company does not expect that any new products and services or marketing effort, including those in the development stage, will require the investment of a material amount of the Company's assets.

**Patents, Service Marks and Licenses**

The Roto-Rooter trademarks and service marks have been used and advertised since 1935 by Roto-Rooter Corporation, a wholly owned indirect subsidiary of the Company. The Roto-Rooter marks are among the most highly recognized trademarks and service marks in the United States. The Company considers the Roto-Rooter marks to be a valuable asset and a significant factor in the marketing of Roto-Rooter's franchises, products and services and the products and services provided by its franchises.

"VITAS" and "Innovative Hospice Care" are trademarks and servicemarks of VITAS Healthcare Corporation. The Company and its subsidiaries also own certain trade secrets including training manuals, cost information, patient information and software source code. Certain states require Certificates of Need to conduct hospice operations. In those states, we consider Certificates of Need valuable assets.

------

**Seasonality**

Roto-Rooter's revenue and operating results are impacted by significant weather patterns across the United States. Significant changes in precipitation or temperatures in areas we have company-owned and Independent Contractor operations will generally affect the revenue and operating results at Roto-Rooter.

A significant portion of our VITAS business is operated in the state of Florida. The vast majority of our patients are Medicare recipients. Medicare patients relocating to Florida during the winter months generally result in higher admissions and revenue for our Florida programs during that period.

**Customer Concentration**

Roto-Rooter's business has a large and diverse customer base. Over 90% of VITAS' revenue is from the United States government through the Medicare program. The loss of a portion or all of our Medicare revenue would have a material adverse effect on the Company.

**Competition**

**Roto-Rooter**

All aspects of the sewer, drain and pipe cleaning, plumbing repair, excavation and water restoration businesses are highly competitive. Competition is fragmented in most markets with local and regional firms providing the primary competition. Private equity businesses have recently made significant investments in home service companies, including plumbing. The principal methods of competition are advertising, range of services provided, name recognition, emergency-service availability, speed and quality of customer service, service guarantees, and pricing.

**VITAS**

Hospice care in the United States is competitive. Plans of care for hospice services are not proprietary. As a result, VITAS competes and differentiates itself primarily on the basis of its ability to deliver quality, responsive services within the requirements of Medicare's hospice conditions of participation. VITAS is one of the nation's largest providers of hospice services in an industry dominated primarily by small, community-based hospices. Approximately 20% of all hospice providers are not-for-profit. Because the hospice care industry is highly fragmented, VITAS competes with a large number of organizations.

VITAS also competes with a number of national and regional hospice providers, hospitals, nursing homes, home health agencies and other health care providers. Many providers offer home care to patients who are terminally ill, and some actively market palliative care and hospice-like programs. In addition, various health care companies have diversified into the hospice market. Some of these health care companies have greater financial resources than VITAS. Relatively few barriers to entry exist in many of the markets served by VITAS. Accordingly, other companies that are not currently providing hospice care may enter these markets and expand the variety of services they offer to include hospice.

**Research and Development**

The Company continuously works to develop new services, products and processes, improve existing services, products and processes, and develop new and different uses of existing products. The research and development expenditures from continuing operations have not been nor are they expected to be material.

**Government Regulations**

**Roto-Rooter**

Roto-Rooter's franchising activities are subject to various federal and state franchising laws and regulations, including the rules and regulations of the Federal Trade Commission (the "FTC") regarding the offering or sale of franchises. The rules and regulations of the FTC require that Roto-Rooter provide all the prospective franchisees with specific information regarding the franchise program and Roto-Rooter in the form of a detailed franchise offering circular. In addition, a number of states require Roto-Rooter to register its franchise offering prior to offering or selling franchises in the state. Various state laws also provide for certain rights in favor of franchisees, including (i) limitations on the franchisor's ability to terminate a franchise except for good cause, (ii) restrictions on the franchisor's ability to deny renewal of a franchise, (iii) circumstances under which the franchisor may be required to purchase certain inventory of franchisees when a franchise is terminated or not renewed in violation of such laws, and (iv) provisions relating to arbitration. Roto-Rooter's ability to engage in the plumbing repair, excavation and water restoration businesses is also subject to certain limitations and restrictions imposed by state and local licensing laws and regulations.

------

**VITAS**

*General.* The health care industry and VITAS' hospice and palliative care programs are subject to extensive federal and state regulation. VITAS' hospices are licensed as required under state law as either hospices or home health agencies, or both, depending on the regulatory requirements of each particular state. In addition, VITAS' hospices are required to meet certain conditions of participation to be eligible to receive payments as hospices under Medicare and Medicaid programs. All of VITAS' hospices, other than those currently in development, are certified for participation as hospices in the Medicare program, and are also eligible to receive payments as hospices from the Medicaid program in each of the states in which VITAS operates. VITAS' hospices are subject to periodic survey by governmental authorities or private accrediting entities to assure compliance with state licensing, certification and accreditation requirements.

*Medicare Conditions of Participation.* Federal regulations require that a hospice program satisfy certain Conditions of Participation ("COP") to be certified and receive Medicare payment for the services it provides. Failure to comply with the conditions of participation may result in sanctions, up to and including decertification from the Medicare program. See "*Surveys and Audits*" below.

The Medicare COP for hospice programs include the following:

*Governing Body*. Each hospice must have a governing body that assumes full responsibility for the policies and the overall operation of the hospice and for ensuring that all services are provided in a manner consistent with accepted standards of practice. The governing body must designate one individual who is responsible for the day-to-day management of the hospice.

*Medical Director*. Each hospice must have a medical director who is a physician and who assumes responsibility for overseeing the medical component of the hospice's patient care program.

*Direct Provision of Core Services*. Medicare limits those services for which the hospice may use individual independent contractors or contract agencies to provide care to patients. Specifically, substantially all nursing, social work, and counseling services must be provided directly by hospice employees meeting specific educational and professional standards. During periods of peak patient loads or under extraordinary circumstances, the hospice may be permitted to use contract workers, but the hospice must agree in writing to maintain professional, financial and administrative responsibility for the services provided by those individuals or entities.

*Professional Management of Non-Core Services.* A hospice may arrange to have non-core services such as therapy services, home health aide services, medical supplies or drugs provided by a non-employee or outside entity. If the hospice elects to use an independent contractor to provide non-core services, however, the hospice must retain professional management responsibility for the arranged services and ensure that the services are furnished in a safe and effective manner by qualified personnel, and in accordance with the patient's plan of care.

*Plan of Care*. The patient's attending physician, the medical director or the designated hospice physician, and interdisciplinary team must establish an individualized written plan of care prior to providing care to any hospice patient. The plan must assess the patient's needs and identify services to be provided to meet those needs and must be reviewed and updated at specified intervals.

*Continuation of Care*. A hospice may not discontinue or reduce care provided to a Medicare beneficiary if the individual becomes unable to pay for that care.

*Informed Consent*. The hospice must obtain the informed consent of the hospice patient, or the patient's legal representative, that specifies the type of care services that may be provided as hospice care, which is palliative and not curative care. The patient or the patient's legal representative must also acknowledge that by choosing hospice care, certain other Medicare benefits are waived.

*Training*. A hospice must provide ongoing training for its employees.

*Quality Assurance.* A hospice must conduct ongoing and comprehensive self-assessments of the quality and appropriateness of care it provides and that its contractors provide under arrangements to hospice patients.

*Interdisciplinary Team*. A hospice must designate an interdisciplinary team to provide or supervise hospice care services. The interdisciplinary team develops and updates plans of care, and establishes policies governing the day-to-day provision of hospice services. The team must include at least a physician, registered nurse, social worker and spiritual or other counselor. A registered nurse must be designated to coordinate the plan of care.

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*Volunteers.* Hospice programs are required to recruit and train volunteers to provide patient care services or administrative services. Volunteer services must be provided in an amount equal to at least five percent of the total patient care hours provided by all paid hospice employees and contract staff.

*Licensure*. Each hospice and all hospice personnel must be licensed, certified or registered in accordance with applicable federal, state and local laws and regulations.

*Central Clinical Records*. Hospice programs must maintain clinical records for each hospice patient that are organized in such a way that they may be easily retrieved. The clinical records must be complete and accurate and protected against loss, destruction and unauthorized use.

*Surveys and Audits*. Hospice programs are subject to periodic survey by federal and state regulatory authorities and private accrediting entities to ensure compliance with applicable licensing and certification requirements and accreditation standards. Regulators conduct periodic surveys of hospice programs, and provide reports containing statements of deficiencies for alleged failure to comply with various regulatory requirements. Survey reports and statements of deficiencies are common in the healthcare industry. In most cases, the hospice program and regulatory authorities will agree upon any steps to be taken to bring the hospice into compliance with applicable regulatory requirements or will undertake CMS' informal dispute resolution process. In some cases, however, a state or federal regulatory authority may take a number of adverse actions against a hospice program, including the imposition of fines, civil monetary penalties, payment suspensions, insertion of temporary management, temporary suspension of admission of new patients to the hospice's service, implementing directed plans of correction or, in extreme circumstances, decertification from participation in the Medicare or Medicaid programs or revocation of the hospice's license.

CMS is conducting a Targeted Probe and Educate ("TPE") program, designed to improve compliance in submitting Medicare claims and reduce deficiencies. In the TPE program, a healthcare provider has up to three rounds of review to sufficiently improve results, or the provider may face significant action from CMS. During the rounds of a TPE review, payment of claims subject to the review is delayed.

From time to time VITAS receives survey reports containing statements of deficiencies and sustains related adverse actions. VITAS reviews such reports and takes appropriate corrective action, including where appropriate, appealing the reports and any adverse actions discussed in the reports. VITAS believes that its hospices are in material compliance with applicable licensure and certification requirements. If a VITAS hospice were found to be out of compliance and actions were taken against a VITAS hospice, they could materially adversely affect the hospice's ability to continue to operate, to provide certain services and to participate in the Medicare and Medicaid programs, which could materially adversely affect VITAS.

*Billing Audits/Claims Reviews*. The Medicare program and its Medicare Administrative Contractors and other payors periodically conduct pre-payment or post-payment reviews and other reviews and audits of health care claims, including hospice claims. There is pressure from state and federal governments and other payors to scrutinize health care claims to determine their validity and appropriateness. In order to conduct these reviews, the payor requests documentation from VITAS and then reviews that documentation to determine compliance with applicable rules and regulations, including the eligibility of patients to receive hospice benefits, the appropriateness of the care provided to those patients and the documentation of that care. VITAS' claims are periodically subject to review and audit. We make appropriate provisions in our accounting records to reduce our revenue for anticipated denial or delay of payment related to these audits and reviews. We believe our hospice programs comply with all payor requirements at the time of billing. However, we cannot predict whether future billing reviews or similar audits by payors will result in material delays, suspensions, denials or reductions in revenue.

*Certificate of Need Laws and Other Restrictions*. Some states, including Florida and California, have Certificate of Need laws, restrictions on new licenses, or other similar health planning laws that apply to hospice care providers. These states may require some form of state agency review or approval prior to opening a new hospice program, to adding or expanding hospice services, to undertaking significant capital expenditures or under other specified circumstances. Approval under these Certificate of Need laws is generally conditioned on the showing of a demonstrable need for services in the community. VITAS may seek to develop, acquire or expand hospice programs in states having Certificate of Need laws. To the extent that state agencies require VITAS to obtain a Certificate of Need or other similar approvals to expand services at existing hospice programs or to make acquisitions or develop hospice programs in new or existing geographic markets, VITAS' plans could be adversely affected by a failure to obtain such certificate or approval. In addition, competitors may seek administratively or judicially to challenge such an approval or proposed approval by the state agency. Such a challenge, whether or not ultimately successful, could adversely affect VITAS. In the event that these Certificate of Need laws and similar restrictions are removed or their impact is weakened in any geography in which VITAS already operates, additional competitors may be able to enter those markets more easily, and potentially adversely affect VITAS. Additionally, if any state or federal agency places a moratorium on new hospices or hospice expansion in any geography, it could adversely affect VITAS growth potential.

------

*Limitations on For-Profit Ownership.* A few states have laws that restrict the development and expansion of for-profit hospice programs. For example, in New York, a hospice generally cannot be owned by a corporation that has another corporation as a stockholder. These types of restrictions could affect VITAS' ability to expand into New York, or in other jurisdictions with similar restrictions.

*Limits on Acquisitions or Conversions.* A number of states have enacted laws that restrict the ability of for-profit entities to acquire or otherwise assume the operations of a non-profit health care provider. Some states may require government review, public hearings, and/or government approval of transactions in which a for-profit entity proposes to purchase certain non-profit healthcare organizations. Heightened scrutiny of these transactions may significantly increase the costs associated with future acquisitions of non-profit hospice programs in some states, otherwise increase the difficulty in completing those acquisitions or prevent them entirely. Additionally, sizable healthcare transactions have recently received heightened scrutiny from antitrust regulators including initiating a lawsuit to prevent an acquisition with respect to both horizontal and vertical mergers, which may affect VITAS' prospects for transactions. VITAS cannot assure that it will not encounter regulatory or governmental obstacles in connection with any proposed acquisition of non-profit hospice programs in the future.

*Professional Licensure and Participation Agreements*. Many hospice employees are subject to federal and state laws and regulations governing the ethics and practice of their profession, including physicians, physical, speech and occupational therapists, social workers, home health aides, pharmacists and nurses. In addition, those professionals who are eligible to participate in the Medicare, Medicaid or other federal health care programs as individuals must not have been excluded from participation in those programs at any time.

*State Licensure of Hospice*. Each of VITAS' hospices must be licensed in the state in which it operates. State licensure rules and regulations require that VITAS' hospices maintain certain standards and meet certain requirements, which may vary from state to state. VITAS believes that its hospices are in material compliance with applicable licensure requirements. If a VITAS hospice were found to be out of compliance and actions were taken against a VITAS hospice, they could materially adversely affect the hospice's ability to continue to operate, to provide certain services and to participate in the Medicare and Medicaid programs, which could materially adversely affect VITAS.

*Overview of Government Payments—General*. Over 95% of VITAS' revenue consisted of payments from the Medicare and Medicaid programs. Such payments are made primarily on a "per diem" basis. Under the per diem reimbursement methodology, VITAS is essentially at risk for the cost of eligible services provided to hospice patients. Profitability is therefore largely dependent upon VITAS' ability to manage the costs of providing hospice services to patients. Increases in operating costs, such as labor, pharmaceutical and supply costs that are subject to inflation and other increases related to tariffs or other tax increases, without a compensating increase in Medicare and Medicaid rates, could have a material adverse effect on VITAS' business in the future. The Medicare and Medicaid programs are increasing pressure to control health care costs and to decrease or limit increases in reimbursement rates for health care services. As with most government programs, the Medicare and Medicaid programs are subject to statutory and regulatory changes, possible retroactive and prospective rate and payment adjustments, administrative rulings, freezes and funding reductions, all of which may adversely affect the level of program payments and could have a material adverse effect on VITAS' business. VITAS' levels of revenues and profitability are subject to the effect of legislative and regulatory changes, including possible reductions in coverage or payment rates, increased scrutiny of claims necessitating additional resources to respond, or changes in methods of payment, by the Medicare and Medicaid programs.

*Overview of Government Payments – Medicare* 

*Medicare Eligibility Criteria*. To receive Medicare payment for hospice services, the hospice medical director and, if the patient has one, the patient's attending physician, must certify and describe in a brief narrative that the patient has a life expectancy of six months or less if the illness runs its normal course. This determination is made based on the physician's clinical judgment. Due to the uncertainty of such prognoses, however, it is likely and expected that some percentage of hospice patients will not die within six months of entering a hospice program. The Medicare program (among other third-party payers) recognizes that terminal illnesses often do not follow an entirely predictable course, and therefore the hospice benefit remains available to beneficiaries so long as the hospice physician or the patient's attending physician continues to certify that the patient's life expectancy remains six months or less and the patient or patient's legal representative, continues to maintain the hospice election. Specifically, the Medicare hospice benefit provides for two initial 90 day benefit periods followed by an unlimited number of 60 day periods. In order to qualify for hospice care, a Medicare beneficiary must elect hospice care and waive any right to other Medicare benefits related to his or her terminal illness. A Medicare beneficiary may revoke his or her election of the Medicare hospice benefit at any time and resume receiving regular Medicare benefits. The patient may elect the hospice benefit again at a later date so long as he or she remains eligible. The Medicare program, however, has reaffirmed that Medicare hospice beneficiaries are not limited to six months of coverage and that there is no limit on how long a Medicare beneficiary can continue to receive hospice benefits and services, provided that the beneficiary continues to meet the eligibility criteria under the Medicare hospice program.

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*Levels of Care*. Medicare pays for hospice services on a prospective payment system basis under which VITAS receives an established payment rate for each day that it provides hospice services to a Medicare beneficiary. These rates are subject to annual adjustments for inflation and vary based upon the geographic location where the services are provided. The rate VITAS receives depends on which level of care is being provided to the beneficiary.

There are four levels of care and related reimbursement within the Medicare Hospice Benefit. These levels of care are Routine Home Care, Continuous Care, Inpatient Care and Respite Care. Medicare hospice providers are required under Medicare's Conditions of Participation and their regulations to provide all four levels of care, available on a 24/7 basis, when appropriate.

VITAS, as required under Medicare's Conditions of Participation and their regulations, has the ability to provide all levels of care to its patients. The actual level of care a patient receives on any given day is based upon the clinical needs of the patient.

*Routine Home Care*. The routine home care rate is paid for each day that a patient is in a hospice program and is not receiving one of the other categories of hospice care. The routine home care rate is a two tiered rate, with a higher rate for the first 60 days of a hospice patient's care and a lower rate for days 61 and after. In addition, there is a Service Intensity Add-on payment which covers direct home care visits conducted by a registered nurse or social worker in the last seven days of a hospice patient's life, reimbursed up to 4 hours per day in 15 minute increments at the continuous care rate.

*General Inpatient Care*. The general inpatient care rate is paid when a patient requires inpatient services for a short period for pain control or symptom management which cannot be managed in other settings. General inpatient care services must be provided in a Medicare or Medicaid certified hospital or long-term care facility or at a freestanding inpatient hospice facility with the required registered nurse staffing.

*Continuous Home Care.* Continuous home care, which VITAS refers to as "Intensive Comfort Care," is provided to patients while at home, during periods of crisis when intensive monitoring and care, primarily nursing care, is required in order to achieve palliation or management of acute medical symptoms. Continuous home care requires a minimum of 8 hours of care within a 24 hour day, which begins and ends at midnight. The care must be predominantly nursing care provided by either a registered nurse or licensed practical nurse. While the published Medicare continuous home care rates are daily rates, Medicare actually pays for continuous home care in 15 minute increments. This 15 minute rate is calculated by dividing the daily rate by 96.

*Respite Care*. Respite care permits a hospice patient to receive services on an inpatient basis for a short period of time in order to provide relief for the patient's family or other caregivers from the demands of caring for the patient. A hospice can receive payment for respite care for a given patient for up to five consecutive days at a time, after which respite care is reimbursed at the routine home care rate.

*Medicare Payment for Physician Services.* Payment for direct patient care physician services delivered by hospice physicians is billed separately by the hospice to the Medicare Administrative Contractors and paid at the lesser of the actual charge or the Medicare allowable charge for these services. This payment is in addition to the per diem rates VITAS receives for hospice care. Payment for hospice physicians' administrative and general supervisory activities is included in the daily rates discussed above. Payments for attending physician professional services (other than services furnished by hospice physicians) are not paid to the hospice, but rather are paid directly to the attending physician by the Medicare Administrative Contractors. For fiscal 2025, less than 2% of VITAS' net revenue was attributable to physician services.

*Medicare Limits on Hospice Care Payments*. Medicare payments for hospice services are subject to two additional limits or "caps". Each of VITAS' hospice programs is separately subject to both of these "caps". Both of these "caps" are determined on an annual basis for the period running from October 1 through September 30 of each year.

First, under a Medicare rule known as the "80-20" rule applicable to the Medicare inpatient services, if the number of inpatient care days furnished by a hospice to Medicare beneficiaries exceeds 20% of the total days of hospice care furnished by such hospice to Medicare beneficiaries, Medicare payments to the hospice for inpatient care days exceeding the cap are reduced to the routine home care rate.

Second, Medicare payments to a hospice are also subject to a separate cap based on overall average payments per admission. Any payments exceeding this overall hospice cap must be refunded by the hospice. This cap was set at $34,465.34 per admission for the twelve month period ended on September 30, 2025, increased to $35,361.44 for the twelve month period ending on September 30, 2026, and is adjusted annually to account for inflation. As discussed on page 15, Medicare payment rates increase differently on a county-by-county basis, and may increase significantly more than the Medicare cap amount in any year. VITAS' hospices may be subject to future payment reductions or recoupments as the result of this cap.

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These caps apply to hospices programs by billing number; Accordingly, for larger programs, the effect of a cap limitation can be sizable and adversely affect revenue.

*Medicare Managed Care Programs*. The Medicare program has entered into contracts with managed care companies to provide managed care benefits to Medicare beneficiaries who elect to participate in managed care programs. These managed care programs are commonly referred to as Medicare HMOs, Medicare Advantage or Medicare risk products. VITAS provides hospice care to Medicare beneficiaries who participate in these managed care programs, and VITAS is paid for services provided to these beneficiaries in the same way and at the same rates as those of other Medicare beneficiaries who are not in a Medicare managed care program. Under current Medicare policy, Medicare pays the hospice directly for services provided to these managed care program participants.

*Overview of Government Payments – Medicaid*

*Medicaid Coverage and Reimbursements.* State Medicaid programs are another source of VITAS' net patient revenue. Medicaid is a state-administered program financed by state funds and federal funds to provide medical assistance to the indigent and certain other eligible persons. For those states that elect to provide a hospice benefit, the Medicaid program is required to pay the hospice at rates at least equal to the rates provided under Medicare and calculated using the same methodology. States maintain flexibility to establish their own hospice election procedures and to limit the number and duration of benefit periods for which they will pay for hospice services. Reimbursement from state Medicaid programs in 2025 accounted for approximately 3% of VITAS' revenues.

*Nursing Home Residents.* For VITAS' patients who receive nursing home care under a state Medicaid program and who elect hospice care under Medicare or Medicaid, VITAS contracts with nursing homes for the nursing homes' provision of room and board services. In addition to the applicable Medicare or Medicaid hospice daily or hourly rate, the state generally must pay VITAS an amount equal to at least 95% of the Medicaid daily nursing home rate for room and board services furnished to the patient by the nursing home. Under VITAS' standard nursing home contracts, VITAS pays the nursing home for these room and board services at the Medicaid daily nursing home rate.

*Managed Medicaid*. In some states in which VITAS operates, the state legislatures have established managed Medicaid programs. Managed Medicaid programs outsource the process of eligibility determination and payment by Medicaid to private insurance companies. In some states, participants are required to choose a managed Medicaid provider. VITAS negotiates participant eligibility and documentation requirements, as well as hospice pay rates with each managed Medicaid provider. These requirements and pay rates may or may not align with the applicable Medicare hospice regulations and pay rates.

*Adjustments to Medicare and Medicaid Payment Rates.* 

Payment rates under the Medicare and Medicaid programs are adjusted annually for inflation based upon the Hospital Market Basket Index and the Consumer Price Index; however, the adjustments have historically been less than actual inflation. These base rates are further modified by the Hospice Wage Index to reflect local differences in wages according to the revised wage index. Effective April 1, 2013, the Federal government implemented a 2% reimbursement cut for all Medicare programs, including hospice. In response to COVID-19, this 2% reimbursement cut was suspended or reduced to 1% through a series of legislative measures for the period May 1, 2020 through June 30, 2022. It is possible that there will be further modifications to the rate structure under which the Medicare or Medicaid programs pay for hospice care services; the current cut is scheduled to last through the Federal Government's fiscal year 2027. Any future reductions in the rate of increase or an actual decrease in Medicare and Medicaid payments may have an adverse impact on VITAS' net patient service revenue and profitability.

On August 6, 2019, the Centers for Medicare and Medicaid Services released the fiscal year 2020 hospice wage index and payment rate update (FY 2020 update). The FY 2020 update includes the normal yearly inflationary increase by level of care plus a rebasing of the continuous care, inpatient care and respite care rates. The rebasing of these levels of care was to reflect non-inflationary changes in providers' costs over time. The rebasing increased the national average reimbursement rate for continuous care by 39.9% and inpatient care by 34.7%. Respite care is not material to our operations. The rebasing of these levels of care was effective on October 1, 2019. On July 31, 2025, the Centers for Medicare and Medicaid Services released the 2026 inflationary increase effective October 1, 2025, which was 2.6%.

***<u>Other Healthcare Regulations</u>***

*Federal and State Anti-Kickback Laws and Safe Harbor Provisions*. The federal Anti-Kickback Law makes it a felony to knowingly and willingly offer, pay, solicit or receive any form of remuneration in exchange for referring, recommending, arranging, purchasing, leasing or ordering items or services covered by a federal health care program including Medicare or Medicaid. The Anti-Kickback Law applies regardless of whether the remuneration is provided directly or indirectly, in cash or in kind. Although the Anti-Kickback statute does not prohibit all financial transactions or relationships that providers of healthcare items or services may have with

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each other, interpretations of the law have been very broad. Under current law, courts and federal regulatory authorities have stated that this law is violated if even one purpose (as opposed to the sole or primary purpose) of the arrangement is to induce referrals.

Violations of the Anti-Kickback Law carry potentially severe penalties including imprisonment of up to ten years, criminal fines of up to $100,000 per act, civil money penalties of up to $100,000 per act, and additional damages of up to three times the amounts claimed or remuneration offered or paid. Federal law also authorizes exclusion from the Medicare and Medicaid programs for violations of the Anti-Kickback Law.

The Anti-Kickback Law contains several statutory exceptions to the broad prohibition. In addition, Congress authorized the OIG to publish numerous "safe harbors" that exempt some practices from enforcement action under the Anti-Kickback Law and related laws. These statutory exceptions and regulatory safe harbors protect various bona fide employment relationships, contracts for the rental of space or equipment, personal service arrangements, and management contracts, among other things, provided that certain conditions set forth in the statute or regulations are satisfied. The safe harbor regulations, however, do not comprehensively describe all lawful relationships between healthcare providers and referral sources, and the failure of an arrangement to satisfy all of the requirements of a particular safe harbor does not mean that the arrangement is unlawful. Failure to comply with the safe harbor provisions, however, may mean that the arrangement will be subject to scrutiny.

Many states, including states where VITAS does business, have adopted similar prohibitions against payments that are intended to induce referrals of patients, regardless of the source of payment. Some of these state laws lack explicit "safe harbors" that may be available under federal law. Sanctions under these state anti-kickback laws may include civil money penalties, license suspension or revocation, exclusion from the Medicare or Medicaid programs, and criminal fines or imprisonment. Little precedent exists regarding the interpretation or enforcement of these statutes.

VITAS is required under the Medicare conditions of participation and some state licensing laws to contract with numerous healthcare providers and practitioners, including physicians, hospitals and nursing homes, and to arrange for these individuals or entities to provide services to VITAS' patients. In addition, VITAS has contracts with other suppliers, including pharmacies, ambulance services and medical equipment companies. Some of these individuals or entities may refer, or be in a position to refer, patients to VITAS, and VITAS may refer, or be in a position to refer, patients to these individuals or entities. These arrangements may not qualify for a safe harbor. VITAS from time to time seeks guidance from regulatory counsel as to the changing and evolving interpretations and the potential applicability of these anti-kickback laws to its programs, and in response thereto, takes such actions as it deems appropriate. The Company generally believes that VITAS' contracts and arrangements with providers, practitioners and suppliers do not violate applicable anti-kickback laws. However, the Company cannot assure that such laws will ultimately be interpreted in a manner consistent with VITAS' practices.

*HIPAA Anti-Fraud Provisions*. HIPAA includes several revisions to existing health care fraud laws by permitting the imposition of civil monetary penalties in cases involving violations of the anti-kickback statute or contracting with excluded providers. In addition, HIPAA created statutes making it a federal felony to engage in fraud, theft, embezzlement, or the making of false statements with respect to healthcare benefit programs, which include private, as well as government programs. In addition, federal enforcement officials have the ability to exclude from the Medicare and Medicaid programs any investors, officers and managing employees associated with business entities that have committed healthcare fraud, even if the investor, officer or employee had no actual knowledge of the fraud.

*OIG Fraud Alerts, Advisory Opinions and Other Program Guidance*. The OIG identifies and seeks to eliminate fraud, abuse and waste in HHS programs. The OIG conducts audits, investigations and inspections and issues public pronouncements identifying practices that may be subject to heightened scrutiny. There have been a number of hospice related audits and reviews conducted. These reviews and recommendations have included:

Ensuring that Medicare hospice eligibility determinations are made in accordance with the Medicare regulations; and

Revising the annual cap on hospice benefits to better reflect the cost of care provided.

From time to time, various federal and state agencies, such as HHS and the OIG, issue a variety of pronouncements, including fraud alerts, the OIG's Annual Work Plan and other reports, identifying practices that may be subject to heightened governmental scrutiny. The Company cannot predict what, if any, changes may be implemented in coverage, reimbursement, or enforcement policies as a result of these OIG reviews and recommendations.

On October 30, 2017, the Company entered into a settlement agreement to resolve civil litigation under the False Claims Act brought by the United States Department of Justice ("DOJ") on behalf of the OIG and various relators concerning VITAS, filed in the U.S. District Court of the Western District of Missouri. The Company denied any violation of law and agreed to settlement without admission of wrongdoing.

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In connection with the settlement, VITAS and certain of its subsidiaries entered into a corporate integrity agreement ("CIA") on October 30, 2017. The CIA formalized various aspects of VITAS' already existing Compliance Program and contained requirements designed to document compliance with federal healthcare program requirements. It had a term of five years during which it imposed monitoring, reporting, certification, oversight, screening and training obligations, certain of which had previously been implemented by VITAS. It also required VITAS to engage an Independent Review Organization ("IRO") to perform audit and review functions and to prepare reports regarding compliance with federal healthcare programs. The term of the CIA has lapsed, and on June 22, 2023, the OIG confirmed that VITAS satisfied its obligation under the CIA and that the CIA was concluded.

*Federal False Claims Acts.* The federal law includes several criminal and civil false claims provisions, which provide that knowingly submitting claims for items or services that were not provided as represented may result in the imposition of multiple damages, administrative civil money penalties, criminal fines, imprisonment, and/or exclusion from participation in federally funded healthcare programs, including Medicare and Medicaid. In addition, the OIG may impose extensive and costly corporate integrity requirements upon a healthcare provider that is the subject of a false claims judgment or settlement. These requirements may include the creation of a formal compliance program, the appointment of a government monitor, and the imposition of annual reporting requirements and audits conducted by an independent review organization to monitor compliance with the terms of the agreement and relevant laws and regulations. The Affordable Care Act also contains provisions aimed at strengthening fraud and abuse enforcement.

The Civil False Claims Act prohibits the known filing of a false claim or the known use of false statements to obtain payments. Penalties for violations include fines ranging from $5,500 to $11,000 (as adjusted for inflation), plus treble damages, for each claim filed. Provisions in the Civil False Claims Act also permit individuals to bring actions against individuals or businesses in the name of the government as "qui tam" relators. If a *qui tam* relator's claim is successful, he or she is entitled to share the government's recovery.

Both direct enforcement activity by the government and *qui tam* actions have increased significantly and have increased the risk that a healthcare company may have to defend a false claims action, pay fines or be excluded from the Medicare and/or Medicaid programs as a result of an investigation arising out of this type of an action. Because of the complexity of the government regulations applicable to the healthcare industry, the Company cannot assure that VITAS will not be the subject of other actions under the False Claims Act.

*State False Claims Laws.* Several states in which VITAS currently operates have adopted state false claims laws that mirror to some degree the federal false claims laws. While these statutes vary in scope and effect, the penalties for violating these false claims laws include administrative, civil and/or criminal fines and penalties, imprisonment, and the imposition of multiple damages.

*The Stark Law and State Physician Self-Referral Laws.* Section 1877 of the Social Security Act, commonly known as the "Stark Law", prohibits physicians from referring Medicare or Medicaid patients for "designated health services" to entities in which they hold an ownership or investment interest or with whom they have a compensation arrangement, subject to a number of statutory and regulatory exceptions. Penalties for violating the Stark Law are severe and include:

Denial of payment;

Civil monetary penalties of $15,000 per referral or $100,000 for "circumvention schemes;" (each adjusted for inflation)

Assessments equal to 200% of the dollar value of each such service provided; and

Exclusion from the Medicare and Medicaid programs.

Hospice care itself is not specifically listed as a designated health service; however, certain services that VITAS provides, or in the future may provide, are among the services identified as designated health services for purposes of the self-referral laws. The Company cannot assure that future regulatory changes will not result in hospice services becoming subject to the Stark Law's ownership, investment or compensation prohibitions in the future.

Many states where VITAS operates have laws similar to the Stark Law, but with broader effect because they apply regardless of the source of payment for care. Penalties similar to those listed above as well as the loss of state licensure may be imposed in the event of a violation of these state self-referral laws. Little precedent exists regarding the interpretation or enforcement of these statutes.

*Civil Monetary Penalties.* The Civil Monetary Penalties Statute provides that civil penalties ranging between $20,000 and $100,000 per claim or act (each adjusted for inflation) may be imposed on any person or entity that knowingly submits improperly filed claims for federal health benefits or that offers or makes payment to induce a beneficiary or provider to reduce or limit the use of health

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care services or to use a particular provider or supplier. Civil monetary penalties may be imposed for violations of the anti-kickback statute and for the failure to return known overpayments, among other things.

*Prohibition on Employing or Contracting with Excluded Providers.* The Social Security Act and federal regulations state that individuals or entities that have been convicted of a criminal offense related to the delivery of an item or service under Medicare or Medicaid programs or that have been convicted, under state and federal law, of a criminal offense relating to neglect or abuse of residents in connection with the delivery of a healthcare item or service cannot participate in any federal health care programs, including Medicare and Medicaid. Additionally, individuals and entities convicted of fraud, that have had their licenses revoked or suspended, or that have failed to provide services of adequate quality also may be excluded from the Medicare and Medicaid programs. Federal regulations prohibit Medicare providers, including hospice programs, from submitting claims for items or services or their related costs if an excluded provider furnished those items or services. The OIG maintains a list of excluded persons and entities. Nonetheless, it is possible that VITAS might unknowingly bill for services provided by an excluded person or entity with whom it contracts. The penalty for contracting with an excluded provider may range from civil monetary penalties of $100,000 (as adjusted for inflation) and damages of up to three times the amount of payment that was inappropriately received.

*Corporate Practice of Medicine and Fee Splitting.* Most states have laws that restrict or prohibit anyone other than a licensed physician, including business entities such as corporations, from employing physicians and/or prohibit payments or fee-splitting arrangements between physicians and corporations or unlicensed individuals. Penalties for violations of corporate practice of medicine and fee-splitting laws vary from state to state, but may include civil or criminal penalties, the restructuring or termination of the business arrangements between the physician and unlicensed individual or business entity, or even the loss of the physician's license to practice medicine. These laws vary widely from state to state both in scope and origin (e.g. statute, regulation, Attorney General opinion, court ruling, agency policy) and in most instances have been subject to only limited interpretation by the courts or regulatory bodies.

VITAS employs or contracts with physicians to provide medical direction and patient care services to its patients. VITAS has made efforts in those states where certain contracting or fee arrangements are restricted or prohibited to structure those arrangements, including its palliative care offerings, in compliance with the applicable laws and regulations. Despite these efforts, however, the Company cannot assure that agency officials charged with enforcing these laws will not interpret VITAS' contracts with employed or independent contractor physicians as violating the relevant laws or regulations. Future determinations or interpretations by individual states with corporate practice of medicine or fee splitting restrictions may force VITAS to restructure its arrangements with physicians in those locations.

*Health Information Practices.* There currently are numerous legislative and regulatory initiatives at both the state and federal levels that address patient privacy concerns. In particular, federal regulations issued under the Health Insurance Portability and Accountability Act of 1996 ("HIPAA") and the Health Information Technology for Electronic and Clinical Health Act ("HITECH") require VITAS to protect the privacy and security of patients' individual health information and report any breaches. HIPAA and HITECH do not automatically preempt applicable state laws and regulations concerning VITAS' use, disclosure and maintenance of patient health information, which means that VITAS is subject to a complex regulatory scheme that, in many instances, requires VITAS to comply with both federal and state laws and regulations and the continuing evolution of interpretations of them. If we are found to have violated these laws, we could be subject to sanctions, fines, damages, and other civil and criminal penalties. Additionally, the Department of Health and Human Services' Office of the National Coordinator for the Health Information Technology recently published its final rule regarding interoperability and information blocking, designed to improve coordination within the healthcare system and patients' access to their electronic health information. The penalty for violating the information blocking regulation may include civil monetary penalties.

*Special Focus Program*. In the fourth quarter of 2023, CMS finalized its regulations implementing a Special Focus Program ("SFP") that is intended to identify "poor performing" hospices based on a number of factors through an algorithm designed and adopted by CMS. After initial implementation of the SFP, a lawsuit was filed seeking to enjoin the program, and on February 14, 2025, CMS announced that it had ceased implementation of the SFP to further evaluate the program. The program is still under further evaluation.

*Additional Federal and State Regulation.* Federal and state governments also regulate various aspects of the hospice industry. In particular, VITAS' operations are subject to federal and state health regulatory laws covering professional services, the dispensing of drugs and certain types of hospice activities. Some of VITAS' employees are subject to state laws and regulations governing the ethics and professional practice of medicine, respiratory therapy, pharmacy and nursing.

*Compliance with Health Regulatory Laws.* VITAS maintains an internal regulatory compliance review program and from time to time retains regulatory counsel for guidance on compliance matters. The Company cannot assure, however, that VITAS' practices, if reviewed, would be found to be in compliance with applicable health regulatory laws, as such laws ultimately may be interpreted, or that any non-compliance with such laws would not have a material adverse effect, including an effect on its brand reputation, on VITAS.

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**Environmental Matters**

Roto-Rooter's operations are subject to various federal, state, and local laws and regulations regarding environmental matters and other aspects of the operation of a sewer and drain cleaning, plumbing, and water restoration services business. For certain other activities, such as septic tank and grease trap pumping, Roto-Rooter is subject to state and local environmental health and sanitation regulations.

At December 31, 2025, the Company's accrual for its estimated liability for potential environmental cleanup and related costs arising from the 1991 sale of DuBois Chemicals Inc. ("DuBois") amounted to $1.7 million. Of this balance, $826,000 is included in other current liabilities and $882,000 is included in other liabilities (long-term). The Company is contingently liable for additional DuBois-related environmental cleanup and related costs up to a maximum of $14.9 million. On the basis of a continuing evaluation of the Company's potential liability, and in consultation with the Company's environmental attorney, management believes that it is not probable this additional liability will be paid. Accordingly, no provision for this contingent liability has been recorded. Although it is not presently possible to reliably project the timing of payments related to the Company's potential liability for environmental costs, management believes that any adjustments to its recorded liability will not materially adversely affect its financial position or results of operations.

The Company, to the best of its knowledge, is currently in compliance in all material respects with the environmental laws and regulations affecting its operations. Such environmental laws, regulations and enforcement proceedings have not required the Company to make material increases in or modifications to its capital expenditures and they have not had a material adverse effect on sales or net income. Capital expenditures for the purpose of complying with environmental laws and regulations during 2024 and 2025 with respect to continuing operations are not material in amount; there can be no assurance, however, that presently unforeseen legislative enforcement actions will not require additional expenditures.

California has enacted and subsequently amended the Climate Corporate Data Accountability Act (SB 253) and Greenhouse Gases Climate-Related Financial Risk (SB 261). An injunction has been granted that prohibits The California Air Resources Board ("CARB") from enforcing the requirement to submit SB 261's Climate-Related Financial Risk reports, and SB 253 has been challenged on multiple grounds. CARB has acknowledged the injunction and stated that it will not enforce SB 261. CARB is expected to release draft regulations on the laws in the first quarter of 2026 that will cover initial SB 253 deadlines for Scope 1 and 2 emissions and the fee program for both laws; subsequent rulemaking will establish other requirements (e.g., on data assurance, enforcement, deadlines beyond 2026, reporting templates). The Company is monitoring the adoption and implementation of these laws and regulations, and has readied itself to be able to ensure compliance when applicable.

The Company's environmental policy and sustainability accounting standards board index disclosures are available on its website at <u>chemed.com/company/documents-charters</u>.

**Human Capital Resources**

As of December 31, 2025, the Company, including its subsidiaries Roto-Rooter and VITAS, had a total of 15,811 employees.

As Roto-Rooter and VITAS are both service businesses, the Company recognizes and appreciates that our employees are crucial to our success, and that the attraction and retention of top talent, as well as the training and promotion of that talent, must be key focuses of our businesses.

The Company's Human Rights Policy is available on its website at: <u>chemed.com/company/documents-charters</u> under Governance Documents.

*Workforce Safety and Training* 

The Company's continued success depends on maintaining a safe and healthy workforce. Both Roto-Rooter and VITAS operate businesses where the safety of its employees is a significant focus.

Roto-Rooter's safety program is designed to help ensure the safety of our employees and customers. Its "Safety Certified Program" is deployed to all field employees, including supervisors, managers, and sales personnel. The program includes trainings and policies that cover hazard assessment, environmental issues (including lead and asbestos), personal protective equipment, back support injury prevention, fire safety, and infectious disease. Roto-Rooter's safety training also includes OSHA specific compliance and specialty training depending on the role of the individual, including topics such as electrical safety, torch safety, mainline drain machine safety, driving safety, and other OSHA awareness topics. Roto-Rooter employs regional safety managers, who are all OSHA authorized trainers, as well as other employees across its geographies who are authorized to provide OSHA training. Specialized roles, such as excavation and water restoration, receive specialized training.

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Roto-Rooter's training also extends beyond safety and into human resources and other topics, depending on the role of the employee. All managers receive training in human resources topics, ranging from discrimination, to harassment, to workplace violence, leaves of absence, and other relevant matters. Additional training is given in other topics throughout employees' careers, both on the job and in the classroom, specific to the roles of the employees.

Similarly, VITAS has developed a safety program designed to help keep its employees and patients healthy and safe. In addition to its standard program, that includes trainings on standard safety issues including OSHA matters and other regulatory safety matters, throughout the COVID-19 pandemic, VITAS adapted to the changing landscape of the disease and guidance from the CDC and other regulatory agencies, and put together dozens of trainings for its employees as guidance continually changed to help deal with continuing to provide safe patient care. These trainings covered topics such as information about the disease itself and transmissibility, hygiene, PPE usage and guidelines, telehealth visits, isolation and quarantining precautions, health checks, and other related areas, and were targeted to employees based on their roles within the Company.

VITAS employs a learning management system to deploy and track training provided to its employees on a regular basis, across a range of topics in addition to the safety ones discussed above, including clinical areas, processes, functional areas, leadership topics, human resources topics (including diversity) and regulatory compliance (including HIPAA). Employees are provided training upon onboarding with the Company, and then periodically as appropriate for their individual roles. VITAS continually reviews and revises its trainings depending on business and regulatory risks, as well as the needs of its employees.

*Hiring, Retention, and Compensation*

Both Roto-Rooter and VITAS are service providers, whose employees engage with their customers and patients on a daily basis. For both businesses, hiring and keeping productive employees is an essential function and focus of the business.

Roto-Rooter's focus on hiring and retaining the right people starts during the recruitment process, where both local and centralized teams are involved in the process. After hire, new employees are given appropriate training for their individual roles, with new hires in many roles being managed by a "Hiring Manager" for their first year of employment. Roto-Rooter instills as key values that part of each employee's job is to both "Take Care of the Customer" and "Make it a Great Place to Work." Through this focus, as well as a competitive compensation structure and promote-from-within culture, Roto-Rooter has been able to attract and retain technicians and managers across the company throughout its history, including during the recent downturn in the service industry.

VITAS also focuses on hiring, training and promoting the right talent, and believes that its vision of providing the best available patient and family care is delivered by its committed and compassionate employees. It has an automated recruitment process, designed to increase efficiencies and decrease the time to fill open positions, as well as continue to grow its brand presence in the talent market. It adapted to the new hiring and retention challenges brought on by the pandemic and healthcare labor environment on a market-by-market and role-by-role basis. For example, in order to help with the attraction and retention of healthcare workers during the pandemic induced healthcare worker shortage, VITAS adopted the "Difference Maker Program" in July 2022 which provided stay-bonuses, for eligible existing employees and new employees who were hired during the application of the program. Throughout the program, VITAS paid over $39.2 million in bonuses. The program succeeded in helping VITAS retain and add to its frontline healthcare workers during the pandemic and it has continued to build its workforce through its most recent period of revenue and ADC growth.

*Diversity*

Maintaining a diverse and inclusive workforce is necessary to continue our success. Diverse perspectives help foster continued innovation. Moreover, as a provider of services, our businesses understand that a diverse and inclusive workforce is necessary to best identify and build relationships with our equally diverse customers and patients. Both Roto-Rooter and VITAS highly value diversity in their workplaces and have established and maintained diverse workforces that are constantly evolving to better resemble the communities and populations that we serve.

**Acquisitions**

In 2025, Roto-Rooter completed the acquisition of one franchise in Michigan for $225,000 in cash

In 2024, Roto-Rooter completed the acquisition of one franchise in New Jersey for $5.8 million in cash, one franchise in Texas for $1.5 million in cash, and one franchise in Kentucky for $5.1 million in cash. VITAS completed the purchase of all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc d/b/a/ Covenant Care ("Covenant") for an aggregated purchase price of $85.0 million in cash.

In 2023, Roto-Rooter completed the acquisition of one franchise in South Carolina for $305,000 in cash and one franchise in Georgia for $3.689 million in cash.

Further discussion of Company acquisitions are in Note 7.

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**Available Information**

The Company's Internet address is www.chemed.com. The Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are electronically available through the SEC (http://www.sec.gov) or the Company's website as soon as reasonably practicable after such reports are filed with, or furnished to, the SEC.

Annual reports, press releases, Board Committee charters, Code of Ethics, Corporate governance guidelines and other printed materials may be obtained from the website or from Chemed Investor Relations without charge by writing to, 255 East Fifth Street, Suite 2600, Cincinnati, Ohio 45202. The Company intends to satisfy the disclosure requirement under Item 5.05 of Form 8-K by posting such information on its website, in the event of any such amendment or waiver.

**Item 1A. Risk Factors**

You should carefully consider the risks described below, together with all of the information included in this Annual Report on Form 10-K, in evaluating us and our Capital Stock. They are not the only ones facing the Company. Other risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition, or results of operations.

**<u>ROTO-ROOTER</u>**

**We face intense competition from numerous, fragmented competitors. If we do not compete effectively, our business may suffer.**

We face intense competition from numerous competitors. The sewer, drain and pipe cleaning, excavation, plumbing repair and water restoration businesses are highly fragmented, with the bulk of the competitors consisting of local and regional entities. Private equity businesses have recently made significant investments in home services companies, including plumbing. We compete primarily on the basis of advertising, range of services provided, name recognition, availability of emergency service, speed and quality of customer service, service guarantees and pricing. Our competitors may succeed in developing new or enhanced products and services more successful than ours and in marketing and selling existing and new products and services better than we do. Also, effective marketing and advertising may become more expensive and more difficult as search engines revise algorithms, customers use of artificial intelligence ("AI") platforms become more prevalent and business models and customers change how they find our services. In addition, new competitors may emerge. We cannot make any assurances that we will continue to be able to compete successfully with any of these companies.

**Our operations are subject to numerous laws and regulations, exposing us to potential claims and compliance costs that could adversely affect our business.**

We are subject to federal, state and local laws and regulations relating to franchising, insurance and other aspects of our business. These are discussed in greater detail under "Government Regulations" in the Description of Business section hereof. If we fail to comply with existing or future laws and regulations, we may be subject to governmental or judicial fines and sanctions. Our franchising activities are subject to various federal and state franchising laws and regulations, including the rules and regulations of the FTC regarding the offering or sale of franchises. These rules and regulations require us to provide all of our prospective franchisees with specific information regarding us and our franchise program in the form of a detailed franchise offering circular. In addition, a number of states require us to register our franchise offering prior to offering or selling franchises in such states. Various state laws also provide for certain rights in favor of franchisees, including (i) limitations on the franchisor's ability to terminate a franchise except for good cause, (ii) restrictions on the franchisor's ability to deny renewal of a franchise, (iii) circumstances under which the franchisor may be required to purchase certain inventory of franchisees when a franchise is terminated or not renewed in violation of such laws and (iv) provisions relating to arbitration. The ability to engage in the plumbing repair business is also subject to certain limitations and restrictions imposed by the state and local licensing laws and regulations. We cannot predict what legislation or regulations affecting our business will be enacted in the future, how existing or future laws or regulations will be enforced, administered and interpreted, or the amount of future expenditures that may be required to comply with these laws or regulations. Compliance costs associated with governmental regulations could have a material adverse effect on our business, financial condition and results of operations.

**Roto-Rooter's loss of key management personnel or its inability to hire and retain skilled employees could adversely affect its business, financial condition and results of operations.**

Roto-Rooter's future success significantly depends upon the continued service of its senior management personnel. The loss of one or more of Roto-Rooter's key senior management personnel or its inability to hire and retain new skilled employees could

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negatively impact its ability to maintain or increase customer calls and jobs, a key aspect of its growth strategy, and could adversely affect its future operating results.

Competition for skilled employees, particularly licensed plumbers, is intense, and the process of locating and recruiting skilled employees with the combination of qualifications and attributes required to adequately perform plumbing duties can be difficult and lengthy. We cannot assure you that Roto-Rooter will be successful in attracting, retaining or training highly skilled personnel. Roto-Rooter's business could be disrupted and its growth and profitability negatively impacted if it is unable to attract and retain skilled employees.

**Cybersecurity**

Our information technology systems hold sensitive customer information in the ordinary course of business, including names, addresses, and partial credit card information. We utilize those same systems to perform our day-to-day activities, such as receiving customer calls, dispatching technicians to jobs, and maintaining an accurate record of all transactions. We have not experienced any known material system/data breaches on our information technology systems that compromised customer data or the company's proprietary data. We maintain our information technology systems with safeguard protection against cyber-attacks, including intrusion detection and protection services, firewalls, and endpoint security software. Every month, we test our information technology systems using cyber-scanning software and other methods to learn how a successful system/data breach may occur. If a deficiency is detected, our IT staff will log and remediate the deficiency prescribed by the vendor or manufacturer. Roto-Rooter has developed and tested a response plan in the event of a successful system/data breach and maintains commercial insurance related to cyber-security. We obtain internal control reports from key vendors that maintain company data or process company transactions on a yearly basis. We review these reports to detect any potential cybersecurity issues. However, these safeguards do not ensure that a significant system/data breach may occur. Since the pandemic, certain roles have been conducted remotely, increasing the role and importance of our information technology and security systems. Additionally, the increasing development and use of AI and other new and evolving technologies create additional system and other risks. Chemed's Chief Legal Officer and Chief Financial Officer are alerted to any potential issues and evaluate those issues for cybersecurity materiality. A successful attack on our information technology systems could significantly affect the business, including liability for compromised customer information and business interruption.

**Roto-Rooter's success is highly dependent on its brand reputation.**

Roto-Rooter's national reputation and brand image for performing necessary, high quality services in a timely manner is critical to Roto-Rooter's continued success. Adverse publicity, litigation or on-line negative reviews focused on the Roto-Rooter brand could negatively impact Roto-Rooter's national reputation resulting in decreased future demand for Roto-Rooter branded services. Roto-Rooter maintains a reputation management risk program, however, a loss of brand reputation at Roto-Rooter could adversely affect consumer willingness to use our service and thus, adversely affect our future operating performance.

**<u>VITAS</u>**

**VITAS is highly dependent on payments from Medicare and Medicaid. If there are changes in the rate or methods governing these payments, VITAS' net patient service revenue and profits could be materially affected.**

In excess of 95% of VITAS' net patient service revenue consists of payments from the Medicare and Medicaid programs. Such payments are made primarily on a "per diem" basis. Because VITAS receives a per diem fee to provide eligible services to all patients, VITAS' profitability is largely dependent upon its ability to manage the costs of providing hospice services to patients. Increases in operating costs, such as labor and supply costs that are subject to inflation, without a compensating increase in Medicare and Medicaid rates, could have a material adverse effect on VITAS' business in the future. Additionally, regulators are increasing scrutiny of claims, including through the TPE program, which may require additional resources to respond to audits, and which may cause additional delays or denials in receiving payments. Medicare and Medicaid currently adjust the various hospice payment rates annually based primarily on the increase or decrease of the hospital wage index basket, regionally adjusted. However, the increases may be less than actual inflation. VITAS' profitability could be negatively impacted if this adjustment were eliminated or reduced, or if VITAS' costs of providing hospice services increased more than the annual adjustment. In addition, cost pressures resulting from shorter patient lengths of stay and the use of more expensive forms of palliative care, including drugs and drug delivery systems, could negatively impact VITAS' profitability. Many payors are increasing pressure to control health care costs. The U.S. federal budget remains in flux, which could, among other things, cut Medicare payments to providers. The Medicare program is frequently mentioned as a target for spending cuts and within the Medicare program the hospice benefit is often specifically targeted for cuts. The full impact on our business of any future cuts in Medicare or other programs is uncertain. In addition, both public and private payors are increasing pressure to decrease, or limit increases in, reimbursement rates for health care services. VITAS' levels of revenue and profitability will be subject to the effect of possible reductions in coverage or payment rates by third-party payors, including payment rates from Medicare and Medicaid.

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Hospice Medicare reimbursement is subject to certain limitations or "caps" based on the number of inpatient days of care and overall average capitation per admission. The cap per admission is increased yearly based on the national average Medicare reimbursement increase for hospice. However, the actual reimbursement increase is calculated on a county-by-county basis and may vary significantly from the national average. Because of the potentially significant difference between these two calculations, there is a risk that VITAS could incur a significant cap limitation in one or more of its programs, if the actual reimbursement increase for one of it's programs significantly outpaces the associated increase in the per admission cap.

Each state that maintains a Medicaid program has the option to provide reimbursement for hospice services at reimbursement rates generally required to be at least as much as Medicare rates. All states in which VITAS operates cover Medicaid hospice services; however, we cannot assure you that the states in which VITAS is presently operating or states into which VITAS could expand operations will continue to cover Medicaid hospice services. In addition, the Medicare and Medicaid programs are subject to statutory and regulatory changes, retroactive and prospective rate and payment adjustments, administrative rulings, freezes and funding reductions, all of which may adversely affect the level of program payments and could have a material adverse effect on VITAS' business. We cannot assure that Medicare and/or Medicaid payments to hospices will not decrease. Reductions in amounts paid by government programs for services or changes in methods or regulations governing payments could cause VITAS' net patient service revenue and profits to materially decline.

**15% to 20% of VITAS' days of care are provided to patients who reside in nursing homes. Changes in the laws and regulations regarding payments for hospice services and "room and board" provided to VITAS' hospice patients residing in nursing homes could reduce its net patient service revenue and profitability.**

For VITAS' hospice patients receiving nursing home care under certain state Medicaid programs who elect hospice care under Medicare and Medicaid, the state generally must pay VITAS, in addition to the applicable Medicare or Medicaid hospice per diem rate, an amount equal to at least 95% of the Medicaid per diem nursing home rate for "room and board" furnished to the patient by the nursing home. VITAS contracts with various nursing homes for the nursing homes' provision of certain "room and board" services that the nursing homes would otherwise provide Medicaid nursing home patients. VITAS bills and collects from the applicable state Medicaid program an amount equal to approximately 95% of the amount that would otherwise have been paid directly to the nursing home under the state's Medicaid plan. Under VITAS' standard nursing home contracts, it pays the nursing home for these "room and board" services at approximately 100% of the Medicaid per diem nursing home rate.

The reduction or elimination of Medicare and Medicaid payments for hospice patients residing in nursing homes would reduce VITAS' net patient service revenue and profitability. In addition, changes in the way nursing homes are reimbursed for "room and board" services provided to hospice patients residing in nursing homes could affect VITAS' ability to serve patients in nursing homes.

**If VITAS is unable to maintain relationships with existing patient referral sources or to establish new referral sources, VITAS' growth and profitability could be adversely affected.** 

VITAS' success is heavily dependent on referrals from physicians, long-term care facilities, hospitals and other institutional health care providers, managed care companies, insurance companies and other patient referral sources in the communities that its hospice locations serve, as well as on its ability to maintain good relations with these referral sources. VITAS' referral sources may refer their patients to other hospice care providers or not to a hospice provider at all. Additionally, during the pandemic, VITAS experienced significant changes in referral patterns and sources. In the event that CMS re-institutes the SFP or a similar type of program and any VITAS program is identified as a "poor performer", we do not know the extent to which such identification will affect industry referrals or referral patterns. VITAS' growth and profitability depend significantly on its ability to establish and maintain close working relationships with these patient referral sources and to increase awareness and acceptance of hospice care by its referral sources and their patients. We cannot assure that VITAS will be able to maintain its existing relationships or that it will be able to develop and maintain new relationships in existing or new markets. Moreover, if shifts to referrals continue, it could materially adversely affect the business. VITAS' loss of existing relationships or its failure to develop new relationships could adversely affect its ability to expand or maintain its operations and operate profitably. Moreover, we cannot assure you that awareness or acceptance of hospice care will increase or remain at current levels.

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**VITAS operates in an industry that is subject to extensive government regulation and claims reviews, and changes in law and regulatory interpretations could reduce its net patient service revenue and profitability and adversely affect its financial condition and results of operations.**

The healthcare industry is subject to extensive federal, state and local laws, rules and regulations relating to, among others:

Payment for services;

Conduct of operations, including quality assurance and compliance with conditions of participation, fraud and abuse, anti-kickback prohibitions, self-referral prohibitions and false claims;

Privacy and security of medical records;

Employment practices; and

Various state approval requirements, such as facility and professional licensure, Certificate of Need, compliance surveys and other certification or recertification requirements.

Changes in these laws, rules and regulations or their interpretations or methods of enforcement, including the elimination of any Certificate of Need laws or other license restrictions, could reduce VITAS' net patient service revenue and profitability, or increase VITAS' liabilities, cost of compliance, or legal and other costs in defending any claims. VITAS' ability to comply with such regulations is a key factor in determining the success of its business. See the "Government Regulations" section of this 10-K for a greater description of these matters.

VITAS maintains an internal regulatory compliance review program and from time to time retains regulatory counsel for guidance on compliance matters. We cannot assure you, however, that VITAS' practices, if reviewed, would be found to be in compliance with applicable health regulatory laws, as such laws ultimately may be interpreted, or that any non-compliance with such laws would not have a material adverse effect on VITAS.

**Federal and state legislative and regulatory initiatives could require VITAS to expend substantial sums on acquiring, implementing and supporting new information systems, which could negatively impact its profitability and cash flows.**

There are currently numerous legislative and regulatory initiatives at both the state and federal levels that address patient privacy concerns. We cannot predict the total financial or other impact of the regulations on VITAS' operations. In addition, although VITAS' management believes it is in compliance with the requirement of patient privacy regulations, we cannot assure you that VITAS will not be found to have violated state and federal laws, rules or guidelines surrounding patient privacy. Compliance with current and future HIPAA and HITECH requirements or any other federal or state privacy initiatives could require VITAS to make substantial investments, which could negatively impact its profitability and cash flows.

**VITAS' growth strategies may not be successful, which could adversely affect its business.**

A significant element of VITAS' growth strategy is expected to include expansion of its business in new and existing markets. This aspect of VITAS' growth strategy may not be successful, which could adversely impact its growth and profitability. We cannot assure you that VITAS will be able to:

Identify markets that meet its selection criteria for new hospice locations;

Hire and retain qualified management teams to operate each of its new hospice locations;

Manage a large and geographically diverse group of hospice locations;

Become Medicare and Medicaid certified in new markets, particularly if a moratorium prohibits the granting of new licenses in certain markets;

Generate sufficient hospice admissions to operate profitably in these new markets;

Compete effectively with existing hospices in new markets; or

Obtain state licensure and/or a Certificate of Need from appropriate state agencies in new markets.

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**VITAS' loss of key management personnel or its inability to hire and retain skilled employees could adversely affect its business, financial condition and results of operations.**

VITAS' future success significantly depends upon the continued service of its senior management personnel. The loss of one or more of VITAS' key senior management personnel or its inability to hire and retain new skilled employees could negatively impact VITAS' ability to maintain or increase patient referrals, a key aspect of its growth strategy, and could adversely affect its future operating results.

Competition for skilled employees is intense, and the process of locating and recruiting skilled employees with the combination of qualifications and attributes required to care effectively for terminally ill patients and their families can be difficult and lengthy. We cannot assure you that VITAS will be successful in attracting, retaining or training highly skilled nursing, management, community education, operations, admissions and other personnel. VITAS' business could be disrupted and its growth and profitability negatively impacted if it is unable to attract and retain skilled employees.

**A nationwide shortage of qualified nurses and aides could adversely affect VITAS' profitability, growth and ability to continue to provide quality, responsive hospice services to its patients as nursing and health aides' wages and benefits increase.** 

A significant portion of VITAS' workforce is licensed nurses. VITAS depends on qualified nurses to provide quality, responsive hospice services to its patients. The recent nationwide shortage of qualified nurses impacts some of the markets in which VITAS provides hospice services. In response to this shortage, VITAS has adjusted its wages and benefits to recruit and retain nurses and to engage contract nurses. Similarly, there recently has been a shortage of home health aides, who provide many of the hospice services provided by VITAS. VITAS has also adjusted its wages and benefits to recruit and retain home health and other aides. VITAS' inability to attract and retain qualified nurses and aides as well as other healthcare workers, could adversely affect its ability to provide quality, responsive hospice services to its patients and its ability to increase or maintain patient census in those markets. Increases in the wages and benefits required to attract and retain qualified nurses or an increase in reliance on contract nurses could negatively impact profitability.

**VITAS may not be able to compete successfully against other hospice providers, and competitive pressures may limit its ability to maintain or increase its market position, which could adversely affect its profitability, financial condition and cash flows.**

Hospice care in the United States is highly competitive. In many areas in which VITAS' hospices are located, they compete with a large number of organizations, including:

Community-based hospice providers;

National and regional companies;

Hospital-based hospice and palliative care programs;

Physician groups;

Nursing homes;

Home health agencies;

Infusion therapy companies; and

Nursing agencies.

Various health care companies have diversified into the hospice industry and there is an increasing consolidation across hospice industry. Other companies, including hospitals and health care organizations that are not currently providing hospice care, may enter the markets VITAS serves and expand the variety of services offered to include hospice care. Additionally, jurisdictions where VITAS operates where competition is limited by Certificates of Need, may remove or lessen these restrictions, which could increase competition. We cannot assure you that VITAS will not encounter increased competition in the future that could limit its ability to maintain or increase its market position, including competition from parties in a position to impact referrals to VITAS. Such increased competition could have a material adverse effect on VITAS' business, financial condition and results of operations.

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**Changes in rates or methods of payment for VITAS' services could adversely affect its revenues and profits.** 

Managed care organizations have grown substantially in terms of the percentage of the population they cover and their control over an increasing portion of the health care economy. Managed care organizations have continued to consolidate to enhance their ability to influence the delivery of health care services and to exert pressure to control health care costs. VITAS has a number of contractual arrangements with managed care organizations and other similar parties.

VITAS provides hospice care to many Medicare beneficiaries who have elected Medicare managed care. Under such contracts between HMOs and the federal Department of Health and Human Services, the Medicare payments for hospice services are excluded from the per-member, per-month payment from Medicare to HMOs and instead are paid directly by Medicare to the hospices. As a result, VITAS' payments for Medicare beneficiaries enrolled in Medicare risk HMOs are processed in the same way with the same rates as other Medicare beneficiaries. We cannot assure, however, that payment for hospice services will continue to be excluded from HMO payment under Medicare risk contracts and similar Medicare managed care plans or that if not excluded, managed care organizations or other large third-party payors would not use their power to influence and exert pressure on health care providers to reduce costs in a manner that could have a material adverse effect on VITAS' business, financial condition and results of operations.

**Liability claims may have an adverse effect on VITAS, and its insurance coverage may be inadequate.**

Participants in the hospice industry are subject to lawsuits alleging negligence, professional liability, wage and hour or other similar legal theories, many of which involve large claims and significant defense costs. We are also subject to the risk of lawsuits under the False Claims Act and comparable state laws for allegedly submitting fraudulent bills for services to the Medicare and Medicaid programs and other federal and state healthcare programs. These lawsuits, which may be initiated by "whistleblowers", subpoenas or Civil Investigative Demands can involve significant monetary damages, fines, attorneys' fees and the award of bounties to private <u>qui tam</u> plaintiffs. From time to time, VITAS is subject to such claims and other types of lawsuits. See the description below under Legal Proceedings in the Notes to the Consolidated Financial Statements. The ultimate liability for claims, if any, could have a material adverse effect on its financial condition or operating results. Although VITAS currently maintains liability insurance intended to cover certain claims, we cannot assure you that the coverage limits of such insurance policies will be adequate or that all such claims will be covered by the insurance. In addition, VITAS' insurance policies must be renewed annually and may be subject to increasing premiums, high deductibles, and cancellation during the policy period. While VITAS has been able to obtain liability insurance in the past, such insurance varies in cost, and may not be available in the future on terms acceptable to VITAS, if at all.

A successful claim in excess of the insurance coverage could have a material adverse effect on VITAS. Claims, regardless of their merit or eventual outcome, also may have a material adverse effect on VITAS' business and reputation due to the costs of litigation, diversion of management's time and related publicity.

VITAS procures professional liability coverage on a claims-made basis. The insurance contracts specify that coverage is available only during the term of each insurance contract. VITAS' management intends to renew or replace the existing claims-made policy annually but such coverage is difficult to obtain, may be subject to cancellation and may be written by carriers that are unable, or unwilling to pay claims. Additionally, some risks and liabilities, including claims for punitive damages, are not covered by insurance.

**Cybersecurity** 

In the normal course of business, our information technology systems hold sensitive patient information including patient demographic data, eligibility for various medical plans including Medicare and Medicaid and protected health information. We utilize those same systems to perform our day-to-day activities, such as receiving referrals, assigning medical teams to patients, documenting medical information and maintaining an accurate record of all transactions.

Despite significant safeguards, including active intrusion protection, firewalls and virus detection software, as discussed in greater detail on Item 1C below, in October of 2025, access to our systems was gained by a threat actor in a cybersecurity attack. The threat actor was able to access a significant amount of Protected Health Information ("PHI"); however, despite repeated attempts, was not able to insert a tool often used by threat actors into our system. Our response plan was effective in identifying, quarantining, and eliminating the third-party intrusion, but not before access to PHI was gained.

As a result of the cyberattack, we have reviewed our system and strengthened it further to better prevent future successful attacks.

We maintain commercial insurance related to cyberattacks. We obtain internal control reports from key vendors that maintain company data or process company transactions on a yearly basis. We review these reports to detect any potential cybersecurity issues. However, these safeguards do not ensure that another significant cyberattack could not occur. The current environment, particularly in

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healthcare and with the increase in use of AI and other new technologies, has significantly increased our usage of information technology systems and heightened the need for security of those systems with the increase in telehealth.

Although the cyberattack that led to the breach of PHI was the first to successfully gain access to our systems, it was not an isolated incident. We are regularly the target of attempted cyber and other security threats and must continuously monitor and develop our information technology networks and infrastructure to prevent, detect, address and mitigate the risk of unauthorized access, misuse, computer viruses and other events that could have a security impact. Insider or employee cyber and security threats are increasingly a concern for all large companies, including ours. Chemed's Chief Legal Officer and Chief Financial Officer are alerted to any potential issues and evaluate those issues for cybersecurity materiality.

While we have been able to mitigate the damages from the prior successful attack, and did not experience any material operational or financial issues as a result of the attack, a subsequent successful attack on our information technology systems could have even greater consequences to the business including liability for compromised patient information and business interruption.

**VITAS' success is highly dependent on its brand reputation.**

VITAS' reputation for performing quality routine and high acuity patient hospice care within the regulations mandated by Medicare, Medicaid and commercial payors is critical to our success. Failure to provide quality patient care within the regulations mandated by our third-party payors, or the perception of inappropriate care resulting in adverse publicity, litigation or a campaign of negative on-line reviews are some of the factors that could negatively impact VITAS' national reputation. VITAS maintains a reputation management risk program however, a loss of brand reputation at VITAS could adversely affect referral sources' willingness to refer our service and thus, adversely affect our future operating performance.

It is unclear what effects that CMS' Special Focus Program ("SFP") may have on VITAS' brand reputation. CMS has halted implementation of the program. However, if CMS revises the program or implements a similar program and its implementation identifies any VITAS programs as "poor performers", such designation could negatively affect VITAS' brand reputation, and any additional governmental oversight could materially adversely affect the operations profitability of any affected programs.

**VITAS' headquarters and a significant portion of its operations are in Florida.**

The occurrence of a natural disaster in any region that VITAS has significant operations could have a negative impact on the business. VITAS' headquarters are located in south Florida. In addition, two of our largest programs and an office complex are in south Florida and a substantial percentage of our revenue is derived from our operations across Florida. The location of our headquarters and the size of our operations across Florida increases our exposure to hurricanes. Major hurricanes in Florida could impede our ability to bill for our services, operate our businesses and serve our patients in the affected area. VITAS maintains a disaster recovery program to mitigate this risk and has successfully weathered many hurricanes through the years; however, natural disasters could have an adverse effect on our future operating performance.

**<u>GENERAL</u>**

**The agreements and instruments governing borrowing capacity contain restrictions and limitations that could significantly impact our ability to operate our business and adversely affect the price of our Capital Stock.**

The operating and financial restrictions and covenants in our instruments of indebtedness restrict our ability to incur additional debt; issue and sell capital stock of subsidiaries; sell assets; engage in transactions with affiliates; restrict distributions from subsidiaries; incur liens; engage in business other than permitted businesses; engage in sale/leaseback transactions; engage in mergers or consolidations; make capital expenditures; make guarantees; make investments and acquisitions; enter into operating leases; hedge interest rates; and prepay other debt.

Moreover, if we are unable to meet the terms of the financial covenants or if we breach any of these covenants, a default could result under one or more of these agreements. A default, if not waived by our lenders, could accelerate repayment of our outstanding indebtedness. If acceleration occurs, we may not be able to repay our debt and it is unlikely that we would be able to borrow sufficient additional funds to refinance such debt on acceptable terms. In the event of any default under our credit facilities, the lenders thereunder could elect to declare all outstanding borrowings, together with accrued and unpaid interest and other fees, to be due and payable, and to require us to apply all of our available cash to repay these borrowings, any of which would be an event of default.

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**We depend on our management team and the loss of their service could have a material adverse effect on our business, financial condition and results of operations.**

Our success depends to a large extent upon the continued services of our executive management team. The loss of key personnel could have a material adverse effect on our business, financial condition, results of operations and cash flows. Additionally, we cannot assure you that we will be able to attract or retain other skilled personnel in the future.

**Environmental and safety compliance costs and liabilities could increase our expenses and adversely affect our financial condition.**

Our operations are subject to numerous environmental, health and safety laws and regulations that prohibit or restrict the discharge of pollutants into the environment and regulate employee exposure to hazardous substance in the workplace. Failure to comply with these laws could subject us to material costs and liabilities, including civil and criminal fines, costs to cleanup contamination we cause and, in some circumstances, costs to cleanup contamination we discover on our own property but did not cause.

Because we use and generate hazardous materials in some of our operations, we are potentially subject to material liabilities relating to the cleanup of contamination and personal injury claims. In addition, we have retained certain environmental liabilities in connection with the sale of former businesses. We are currently funding the cleanup of historical contamination at one of our former properties and contributing to the cleanup of third-party sites as a result of our sale of our former subsidiary DuBois Chemicals Inc. Although we have established a reserve for these liabilities, actual cleanup costs may exceed our current estimates due to factors beyond our control, such as the discovery of additional contamination or the enforcement of more stringent cleanup requirements. New laws and regulations or their stricter enforcement, the discovery of presently unknown conditions or the receipt of additional claims for indemnification could require us to incur costs or become the basis for new or increased liabilities including impairment of our brand that could have a material adverse effect on our business, financial condition and results of operations.

**We are subject to certain anti-takeover statutes that might make it more difficult to effect a change in control of the Company.**

We are subject to the anti-takeover provisions of Section 203 of the Delaware General Corporation Law, which prohibits us from engaging in a "business combination" with an "interested stockholder" for a period of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination is approved in a prescribed manner. The application of Section 203 could have the effect of delaying or preventing a change of control that could be advantageous to stockholders. Additionally, the FTC and other antitrust regulators have recently heightened their scrutiny of both horizontal and vertical merges in healthcare which could delay or prevent potential acquisitions, divestitures or a change in control.

**An adverse ruling against us in certain litigation could have an adverse effect on our financial condition and results of operations.**

We are involved in litigation incidental to the conduct of our business currently and from time to time. The damages claimed against us in some of these cases can be substantial. See the "Legal Proceedings" sections of this 10-K and the Notes to the Consolidated Financial Statements for discussion of particular matters. We cannot assure you that we will prevail in pending cases. Regardless of the outcome, such litigation is costly to manage, investigate and defend, and the related defense costs, diversion of management's time and related publicity may adversely affect the conduct of our business and the results of our operations.

**We have historically incurred debt to finance the operations of the Company.** 

The Company has historically had debt service obligations and has the ability through its existing credit facility to incur debt that may restrict our operating flexibility. We cannot assure you that our cash flow from operations would be sufficient to service our future operating needs, which would require us to borrow additional funds, or restructure or otherwise refinance our debt. In addition, the Company has the ability to expand its existing debt and borrowing capacity subject to various restrictions and covenants defined by its creditors. The interest rate the Company pays will fluctuate from time to time based upon a number of factors including current SOFR rates and Company operating performance. Significant changes in these factors could result in a material change in the Company's interest expense.

Our future ability to repay or to refinance our indebtedness and to pay interest on our indebtedness will depend on our operating performance, which may be affected by factors beyond our control. These factors could include operating difficulties, increased operating costs, our competitors' actions and regulatory developments. Our ability to meet our debt service and other obligations may depend in significant part on the extent to which we successfully implement our business strategy. We cannot assure you that we will be able to implement our strategy fully or that the anticipated results of our strategy will be realized. Credit market conditions may make it difficult for us to obtain new financing or refinance our current debt on terms and conditions acceptable to us.

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If our cash flows and capital resources are insufficient to fund our potential debt service obligations, we may be forced to reduce or delay capital expenditures, sell assets, seek additional equity capital or restructure our debt. We cannot assure you that our cash flows and capital resources would be sufficient to make scheduled payments of principal and interest on our indebtedness in the future or that alternative measures would successfully meet our debt service obligations.

**Issues associated with the actual or perceived effects of another epidemic, pandemic, or similar widespread public health concern, could adversely affect our businesses.**

Our businesses may be negatively impacted by the fear of exposure to or actual effects of another epidemic, pandemic, or similar widespread public health concern as we experienced with the COVID-19 pandemic. Negative impacts may include, but not be limited to: restrictions or limitations on our ability to continue operations and service our patients and customers in-person, changes in demand for our services or mix of services demanded, additional costs for personal protection equipment and other items or processes necessitated to maintain the health and safety of our employees, customers and patients, isolated outbreaks of disease that may affect our ability to provide services in certain areas for a period of time, and increasing difficulty in our ability to hire employees to provide in-person services for our patients and customers during the pendency of any public health concern.

Despite our efforts to manage and remedy these impacts, their ultimate impact also depends on factors beyond our knowledge or control, including the duration and severity of any such outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects.

**Significant Tariffs Could Increase Costs, Decrease Margin, and Materially Adversely Affect the Business.**

Both Roto-Rooter's and VITAS's primary businesses are the provision of services within the United States. Accordingly, they are likely to be less affected by the impact of specific or wide-ranging tariffs than many other entities in the United States and Global economies. However, significant tariffs on certain products, such as steel for Roto-Rooter's cabling machines and pharmaceuticals utilized by VITAS, could materially increase the costs of Roto-Rooter and VITAS. Additionally, because our service businesses heavily rely on delivering service to customers or patients in their residences, increases in the costs of vehicle acquisition, maintenance, repair, and reimbursement for employees' use of personal vehicles, could have a significant increase on our expenses.

These additional costs, in the case of VITAS, cannot be passed along to our patients because of the structure of hospice reimbursement, and in the case of Roto-Rooter, may not be able to be fully passed along to our customers. These additional costs could materially adversely affect our margins.

To the extent that tariffs cause any adverse impacts on global supply chains, it could further materially affect the ability of both businesses to timely source critical supplies, which may affect our delivery of services.

If, as a result of tariffs, the United States' economy experiences a recession or other economic slowdown, the demand for Roto-Rooter's non-emergency services may decline materially.

**Item 1B. Unresolved Staff Comments**

None.

**Item 1C. Cybersecurity**

The Company treats cybersecurity risk seriously and is focused on maintaining and regularly updating the security of our systems, networks, technologies and data.

The number and sophistication of attempts to disrupt or penetrate our systems continues to grow, specifically including the rapid increase of attempts against healthcare companies that has been observed since early 2022. To combat the ever-increasing sophistication of cyberattacks including the potential use of AI by threat actors, we continuously work to improve methods for detecting and preventing attacks. We have implemented policies and procedures and developed specific training for our employees, including regular updates and reminders, to help prevent and mitigate any issues that may be caused by any attacks. Further, we regularly engage independent third-party cyber experts to test for vulnerabilities in our environment. We also conduct our own internal simulations to help assess and strengthen our defenses.

Despite these safeguard measures, on October 24, 2025, VITAS learned that an account belonging to a third-party vendor attempted to deploy a tool often used by threat actors in VITAS' information technology environment (the "Environment"). VITAS' security team took immediate actions to contain and remove the intrusion, implemented remedial measures, and notified the third-party

------

vendor in accordance with its cyber incident response process. VITAS and external cybersecurity experts began an investigation into the incident.

Through continued investigation, including through multiple outside vendors, VITAS ascertained certain information, including protected health information ("PHI") of VITAS' current and former patients, was viewed. Additionally, on October 29, VITAS received a notice from a threat actor claiming to have unlawfully accessed the Environment and taken significant amounts of data. The notice threatened the release of the data unless it received a monetary payment. VITAS successfully negotiated with the threat actor, made a payment, and obtained assurances from the threat actor that the PHI was not provided to any other third parties and has since been destroyed. The threat actor provided VITAS with evidence of the deletion of the files.

VITAS has complied with the regulatory and legal notifications which are required as a result of this incident. VITAS and third-party forensic analysts believe that the incident was contained, the threat actor was removed, and that the intrusion was limited to data theft and did not, and is not expected to, materially affect the operation of the Environment or its financial or operational systems. Cyber insurance has covered all costs incurred by VITAS above its $500,000 deductible. Management currently believes the cyber insurance limits are sufficient to cover all remaining costs from this incident.

We acknowledge and have experienced that cyberattack risk may occur with our third-party technology service providers. As described above, the incident arose from a compromised third-party vendor's account. Additionally, high-profile cyberattacks have occurred at healthcare companies, credit bureaus, financial institutions, and other businesses for the purpose of acquiring the confidential information of individuals, including potential customers and patients. We take significant measures to prevent and mitigate issues caused by any such attacks, including outreach to our providers and other third-parties that we engage with, in order to ascertain any potential downstream implications of known breaches. Following the incident we have further strengthened our security permissions on these vendors and their access to our system.

The Company has integrated our cybersecurity prevention and mitigation processes into our overall risk management system and processes. The Chief Technology Officer of Roto-Rooter and the Chief Technology Officer and Chief Information Officer of VITAS are senior executives, with decades of experience in preventing, assessing and managing cybersecurity threats in the private sector as well as government. Both Roto-Rooter and VITAS employ teams of experienced cybersecurity professionals who report to the respective Chief Technology Officer and Chief Information Officer. Both businesses have security incident response plans, pursuant to which they report on the cybersecurity status of the businesses to the Company's Chief Financial Officer and Controller and Chief Legal Officer both regularly as a matter of course, as well as in the event of any potentially material incident including the incident described above. Additionally, Company senior management reports to the Audit Committee on cybersecurity issues on a regular basis, multiple times a year as part of the committee's role in enterprise risk management. The Audit Committee's reports to the board after these sessions include the discussions of the cybersecurity risk management process.

The reports include information on any attacks or potential breaches within the Company as well as security events at third-party providers when the breach or potential breach may affect the Company. This process allows the Company to involve both senior management and third-party service providers, including forensic analysts, other cyber experts, and outside counsel, as necessary in order to combat potential threats and help ensure appropriate and timely responses to threats, and mitigation and remediation of any incidents.

While we have significant internal resources, policies and procedures designed to prevent or limit the effect of another failure, interruption or security breach of our information systems, there can be no assurance that any such failure, interruption or security breach will not occur in the future, or if they do occur, that they will be adequately addressed.

Please also reference additional disclosures about cybersecurity in Item 1A Risk Factors, under both Roto-Rooter and VITAS sections.

**Item 2. Properties**

The Company's corporate offices and the headquarters for Roto-Rooter are located in Cincinnati, Ohio. Roto-Rooter has manufacturing and distribution center facilities in West Des Moines, Iowa and has 356 leased and owned office and service facilities in 34 states. VITAS, headquartered in south Florida, operates 33 Medicare provider numbers across 59 programs from 182 leased and owned facilities and 28 inpatient units in 17 states and the District of Columbia.

All "owned" property is held in fee and is subject to the security interests of the holders of our debt instruments. The leased properties have lease terms ranging from monthly to ten years. Management does not foresee any difficulty in renewing or replacing the remainder of its current leases. The Company considers all of its major operating properties to be maintained in good operating condition and to be generally adequate for present and anticipated needs.

------

**Item 3. Legal Proceedings** 

The Company's disclosure related to legal proceedings is set forth in Note 18 "Legal and Regulatory Matters" included in the Notes to the Consolidated Financial Statements included with this report, and is incorporated herein by reference.

**Item 4. Mine Safety Disclosures**

None

‎

------

**Executive Officers of the Company**

---

| | | | |
|:---|:---|:---|:---|
| Name | Age | Office | First Elected |
| Kevin J. McNamara | 72 | President and Chief Executive Officer | August 2, 1994 (1) |
| Michael D. Witzeman | 55 | Executive Vice President, Chief Financial Officer, and Controller | May 21, 2012 (2) |
| Spencer S. Lee | 70 | Executive Vice President and Chief Executive Officer of Roto-Rooter | May 15, 2000 (3) |
| Joel L. Wherley | 61 | President and Chief Executive Officer of VITAS | July 29, 2025 (4) |
| Brian C. Judkins | 45 | Vice President and Chief Legal Officer | August 31, 2020 (5) |

---

(1)Mr. K.J. McNamara is President and Chief Executive Officer of the Company and has held these positions since August 1994 and May 2001, respectively. Previously, he served as an Executive Vice President, Secretary and General Counsel of the Company, since November 1993, August 1986 and August 1986, respectively. He previously held the position of Vice President of the Company, from August 1986 to May 1992.

(2)Mr. M.D. Witzeman is an Executive Vice President, Chief Financial Officer, and Controller of the Company. Mr. Witzeman was promoted to Chief Financial Officer in January of 2024 and Executive Vice President in May 2025. He has held these positions since May 2025, January 2024, and May 2017, respectively. Prior to that he served as Assistant Vice President and Assistant Controller from July 2005.

(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr. S.S. Lee is an Executive Vice President of the Company and has held this position since May 2000. Mr. Lee is also Chairman and Chief Executive Officer of Roto-Rooter Services Company, a wholly owned subsidiary of the Company, and has held this position since January 1999. Previously, he served as a Senior Vice President of Roto-Rooter Services Company from May 1997 to January 1999.

(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr. J.L. Wherley is President and Chief Executive Officer of VITAS, a wholly owned subsidiary of the Company, and has held these positions since 2024 and 2025, respectively. Previously, from 2017 to 2024, he served as Executive Vice President and Chief Operating Officer of VITAS. Prior to that, he served as Senior Vice President of Hospice Operations for VITAS from 2016 to 2017.

(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr. B.C. Judkins is a Vice President and the Secretary and Chief Legal Officer of the Company. He has held these positions since August 2020. Prior to that he served as Vice President and Counsel from January 2019.

Each executive officer holds office until the annual election at the next annual organizational meeting of the Board of Directors of the Company which is scheduled to be held on May 18, 2026.

**PART II**

**Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities** 

The Company has historically paid cash dividends quarterly. However, future dividends are dependent upon the Company's earnings and financial condition, compliance with certain debt covenants and other factors not presently determinable.

As of February 10, 2026, there were approximately 1,097 stockholders of record of the Company's Capital Stock. This number only includes stockholders of record and does not include stockholders with shares beneficially held in nominee name or within clearinghouse positions of brokers, banks or other institutions.

------

During 2025, the number of shares of Capital Stock repurchased by the Company, the weighted average price paid for each share, the cumulative shares repurchased under each program and the dollar amounts remaining under each program were as follows:

**Company Purchase of Shares of Capital Stock**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total Number** | **Weighted Average** | **Cumulative Shares** | **Dollar Amount** |
|  | **of Shares** | **Price Paid Per** | **Repurchased Under** | **Remaining Under** |
|  | **Repurchased** | **Share** | **the Program** | **The Program** |
| ***<u>February 2011 Program</u>***  |  |  |  |  |
| &nbsp;&nbsp;January 1 through January 31, 2025 | - | $- | 11229358  | $255317749  |
| &nbsp;&nbsp;February 1 through February 28, 2025 | - | - | 11229358  | 255317749  |
| &nbsp;&nbsp;March 1 through March 31, 2025 | 50000  | 595.15  | 11279358  | $225560486  |
| &nbsp;&nbsp;&nbsp;&nbsp;First Quarter Total | 50000  | $595.15  |  |  |
| &nbsp;&nbsp;April 1 through April 30, 2025 | 17952  | $568.94  | 11297310  | $215346869  |
| &nbsp;&nbsp;May 1 through May 31, 2025 | 57048  | 573.76  | 11354358  | 182614724  |
| &nbsp;&nbsp;June 1 through June 30, 2025 | - | - | 11354358  | $182614724  |
| &nbsp;&nbsp;&nbsp;&nbsp;Second Quarter Total | 75000  | $572.61  |  |  |
| &nbsp;&nbsp;July 1 through July 31, 2025 | - | $- | 11354358  | $182614724  |
| &nbsp;&nbsp;August 1 through August 31, 2025 (1) | 278772  | 437.67  | 11633130  | 360605245  |
| &nbsp;&nbsp;September 1 through September 30, 2025 | 128728  | 456.52  | 11761858  | $301838766  |
| &nbsp;&nbsp;&nbsp;&nbsp;Third Quarter Total | 407500  | $443.62  |  |  |
| &nbsp;&nbsp;October 1 through October 31, 2025 | 15000  | $437.21  | 11776858  | $295280666  |
| &nbsp;&nbsp;November 1 through November 30, 2025 | 270000  | 438.93  | 12046858  | 176768446  |
| &nbsp;&nbsp;December 1 through December 31, 2025 | 115000  | 430.31  | 12161858  | $127282674  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fourth Quarter Total | 400000  | $436.39  |  |  |
| (1) In August 2025, our Board of Directors authorized an additional $300 million under the February 2011 Repurchase Program. | (1) In August 2025, our Board of Directors authorized an additional $300 million under the February 2011 Repurchase Program. | (1) In August 2025, our Board of Directors authorized an additional $300 million under the February 2011 Repurchase Program. | (1) In August 2025, our Board of Directors authorized an additional $300 million under the February 2011 Repurchase Program. | (1) In August 2025, our Board of Directors authorized an additional $300 million under the February 2011 Repurchase Program. |

---

------

As of December 31, 2025, the number of stock options and performance share units outstanding under the Company's equity compensation plans, the weighted average exercise price of outstanding options, and the number of securities remaining available for issuance were as follows:

**EQUITY COMPENSATION PLAN INFORMATION**

---

| | | | |
|:---|:---|:---|:---|
|  | Number of securities to be issued upon exercise of outstanding warrants and rights  | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans [excluding securities reflected in column (a)] |
|  | (a) | (b) | (c) |
| Plan Category |  |  |  |
| Equity compensation plans approved by stockholders (1) | 1409255 | $475.47 | 1190275 |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount includes 52,744 shares allocated to certain employees which vest upon attainment of specified earnings per share targets and specified total shareholder return targets.

‎

------

**Comparative Stock Performance** 

The graph below compares the yearly percentage change in the Company's cumulative total stockholder return on Capital Stock (as measured by dividing (i) the sum of (A) the cumulative amount of dividends for the period December 31, 2020, to December 31, 2025, assuming dividend reinvestment, and (B) the difference between the Company's share price at December 31, 2020 and December 31, 2025; by (ii) the share price at December 31, 2020) with the cumulative total return, assuming reinvestment of dividends, of the (1) S&P 500 Stock Index and (2) Dow Jones Industrial Diversified Index.

![Picture 1](che-20251231x10kg001.jpg)

![Picture 1](che-20251231x10kg002.jpg)

‎

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**Item 6. Res** **erved**

**Item 7. M** **anagement's Discussion and Analysis of Financial Conditions and Results of Operations**

The information called for by this Item is set forth on pages 75 through 93 of the 2025 Annual Report to Stockholders and is incorporated herein by reference.

**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

The Company's primary market risk exposure relates to interest rate risk exposure through its variable interest credit facility. For each $10 million dollars borrowed under the credit facility, an increase or decrease of 100 basis points (1% point), increases or decreases the Company's annual interest expense by $100,000.

The Company continually evaluates this interest rate exposure and periodically weighs the cost versus the benefit of fixing the variable interest rates through a variety of hedging techniques.

The Company did not have long-term debt at December 31, 2025.

**Item 8. Financial Statements and Supplementary Data** 

The consolidated financial statements, together with the report thereon of PricewaterhouseCoopers LLP dated February 27, 2026, appearing on pages 41 through 71 of the 2025 Annual Report to Stockholders are incorporated herein by reference.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None.

**Item 9A. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

The Company's management, under the supervision of and with the participation of the Company's President and Chief Executive Officer and the Executive Vice President, Chief Financial Officer, and Controller has evaluated the effectiveness of the Company's disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of the end of the period covered by this report. Based on such evaluation, the Company's President and Chief Executive Officer, and Executive Vice President, Chief Financial Officer, and Controller have concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective and are reasonably designed to ensure that all material information relating to the Company required to be included in the Company's reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to management, including the President and Chief Executive Officer, and Executive Vice President, Chief Financial Officer, and Controller, as appropriate, to allow timely decisions regarding required disclosure.

**Management's Report on Internal Control Over Financial Reporting**

Refer to Management's Report on Internal Control over Financial Reporting and Report of Independent Registered Public Accounting Firm on pages 40 through 42 of the Company's 2025 Annual Report to Stockholders, which are incorporated herein by reference.

**Changes in Internal Control Over Financial Reporting**

There have not been any changes in the Company's internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act during the Company's fiscal quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

**Item 9B. Other Information**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Not applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)During the quarter ended December 31, 2025, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act or any "non-Rule 10b5-1 trading arrangement", as defined in Item 408 of Regulation S-K.

**Item 9C. Di** **sclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

‎

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**PART III**

**Item 10. Directors, Executive Officers and Corporate Governance**

The directors of the Company are:

Kevin J. McNamara

Ron DeLyons

Patrick P. Grace

Christopher J. Heaney

Thomas C. Hutton

Andrea R. Lindell

Eileen P. McCarthy

John M. Mount Jr.

George J. Walsh III

The additional information required under this Item is set forth in the Company's 2026 Proxy Statement and in Part I hereof under the caption "Executive Officers of the Registrant" and is incorporated herein by reference.

The Company has adopted a Code of Ethics that applies to the Company's principal executive officer, principal financial officer, principal accounting officer, directors and employees. A copy of this Code of Ethics is incorporated with this report as Exhibit 14 and it is also posted on the Company's Web site, www.chemed.com.

The Company has also adopted an Insider Trading Policy that includes policies and procedures governing the purchase, sale, and/or other dispositions of our securities by our directors, officers, employees, and the Company itself. The Insider Trading Policy is designed to promote compliance with insider trading laws, rules and regulations, and the New York Stock Exchange listing standards applicable to the Company. A copy of the Insider Trading Policy is incorporated with this report as Exhibit 19.

**Item 11. Executive Compensation**

Information required under this Item is set forth in the Company's 2026 Proxy Statement, which is incorporated herein by reference.

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

Information required under this Item is set forth in the Company's 2026 Proxy Statement, which is incorporated herein by reference.

**Item 13. Certain Relationships and Related Transactions and Director Independence.**

Information required under this Item is set forth in the Company's 2026 Proxy Statement, which is incorporated herein by reference.

**Item 14. Principal Accountant Fees and Services**

**Audit Fees**

PricewaterhouseCoopers LLP charged the Company $2,637,000 for 2025 and $2,627,000 for 2024. These fees were for professional services rendered for the integrated audit of the Company's annual financial statements and of its internal control over financial reporting, review of the financial statements included in the Company's Forms 10-Q and review of documents filed with the SEC.

**Audit-Related Fees**

PricewaterhouseCoopers LLP charged the Company $180,000 for 2025 and $175,000 for 2024, for audit-related services. These services were related primarily to the audit of one of VITAS' Florida subsidiaries.

------

**Tax Fees**

No such services were rendered in 2025 or 2024.

**All Other Fees**

No such other services were rendered in 2025 or 2024.

The Audit Committee has adopted a policy which requires the Committee's pre-approval of audit and non-audit services performed by the independent auditor to assure that the provision of such services does not impair the auditor's independence. The Audit Committee pre-approved all of the audit and non-audit services rendered by PricewaterhouseCoopers LLP as listed above.

‎

------

**PART IV**

---

| | |
|:---|:---|
| **Item 15** | **Exhibits and Financial Statement Schedule** |
| Exhibits |  |
| 3.1 | Certificate of Incorporation of Chemed Corporation.\* |
| 3.2 | Certificate of Amendment to Certificate of Incorporation, dated May 15, 2006.\* |
| 3.3 | By-Laws of Chemed Corporation, as amended December 9, 2022\* |
| 4.1 | Description of Securities.\* |
| 10.1 | 2006 Stock Incentive Plan, as amended August 11, 2006.\*,\*\* |
| 10.2 | 2010 Stock Incentive Plan.\*,\*\* |
| 10.3 | 2015 Stock Incentive Plan\*,\*\* |
| 10.4 | 2018 Stock Incentive Plan\*,\*\* |
| 10.5 | 2022 Stock Incentive Plan\*,\*\* |
| 10.6 | 2025 Stock Incentive Plan\*,\*\* |
| 10.7 | Consulting Agreement with Timothy S. O'Toole dated June 16, 2016.\*,\*\* |
| 10.8 | Employment Agreement with Kevin J. McNamara dated May 3, 2008.\*,\*\* |
| 10.9 | First Amendment to Employment Agreement with Kevin J. McNamara dated July 9, 2009.\*,\*\* |
| 10.10 | Excess Benefits Plan, as restated and amended, effective June 1, 2001.\*,\*\* |
| 10.11 | Amendment No. 1 to Excess Benefits Plan, effective July 1, 2001.\*,\*\* |
| 10.12 | Amendment No. 2 to Excess Benefits Plan, effective November 7, 2003.\*,\*\* |
| 10.13 | Non-Employee Directors' Deferred Compensation Plan.\*,\*\* |
| 10.14 | Chemed/Roto-Rooter Savings & Retirement Plan, effective January 1, 1999.\*,\*\* |
| 10.15 | First Amendment to Chemed/Roto-Rooter Savings & Retirement Plan, effective September 6, 2000.\*,\*\* |
| 10.16 | Second Amendment to Chemed/Roto-Rooter Savings & Retirement Plan, effective January 1, 2001.\*,\*\* |
| 10.17 | Third Amendment to Chemed/Roto-Rooter Savings & Retirement Plan, effective December 12, 2001.\*,\*\* |
| 10.18 | Directors Emeriti Plan.\*,\*\* |
| 10.19 | Chemed Corporation Change in Control Severance Plan, as amended August 3, 2018.\*\* |
| 10.20 | Chemed Corporation Senior Executive Severance Policy, as amended August 3, 2018\*\* |
| 10.21 | Roto-Rooter Deferred Compensation Plan No. 1, as amended January 1, 1998.\*,\*\* |

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---

| | |
|:---|:---|
| 10.22 | Roto-Rooter Deferred Compensation Plan No. 2.\*,\*\* |
| 10.23 | Form of Performance-Based Restricted Stock Units Award\*,\*\* |
| 10.24 | Form of Stock Option Grant, pre-2013.\*,\*\* |
| 10.25 | Form of Stock Option Grant, 2013.\*,\*\* |
| 10.26 | Form of Stock Option Grant, 2015. \*,\*\* |
| 10.27 | Form of Stock Option Grant, 2018. \*,\*\* |
| 10.28 | Form of Stock Option Grant, 2022. \*,\*\* |
| 10.29 | Form of Stock Option Grant, 2025. \*,\*\* |
| 10.30 | Settlement Agreement, effective October 30, 2017 by and among the United States of America, acting through the United States Department of Justice and on behalf of the Office of the Inspector General of the Department of Health and Human Services, VITAS Hospice Services, L.L.C., VITAS Healthcare Corporation, VITAS Healthcare Corporation of California, VITAS Healthcare Corporation of Illinois, VITAS Healthcare Corporation of Florida, Vitas Healthcare Corporation of Ohio, VITAS Healthcare Corporation of Atlantic, VITAS Healthcare of Texas, L.P., VITAS Healthcare Corporation Midwest, VITAS Healthcare Corporation of Georgia, Chemed Corporation, and the various Relators named therein.\* |
| 10.31 | Corporate Integrity Agreement, effective October 30, 2017 between the Office of Inspector General of the Department of Health and Human Services and VITAS Hospice Services, L.L.C., VITAS Healthcare Corporation, VITAS Healthcare Corporation of California, VITAS Healthcare Corporation of Illinois, VITAS Healthcare Corporation of Florida, VITAS Healthcare Corporation of Ohio, VITAS Healthcare Corporation of Atlantic, VITAS Healthcare of Texas, L.P., VITAS Healthcare Corporation Midwest and VITAS Healthcare Corporation of Georgia.\* |
| 10.32 | Fifth Amended and Restated Credit Agreement by and among Chemed Corporation, JP Morgan Chase Bank NA, and other lenders as of June 28, 2022\* |
| 10.33 | David P. Williams Agreement |
| 10.34 | Nicholas M. Westfall Transition and Separation Agreement, Filed as Exhibit 10.1, attached to the Form 10-Q filed July 31, 2025 |
| 13 | 2025 Annual Report to Stockholders. |
| 14 | Policies on Business Ethics of Chemed Corporation |
| 19 | Insider Trading Policy of Chemed Corporation |
| 21 | Subsidiaries of Chemed Corporation. |
| 23 | Consent of Independent Registered Public Accounting Firm. |
| 24 | Powers of Attorney. |
| 31.1 | Certification by Kevin J. McNamara pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934. |
| 31.2 | Certification by Michael D. Witzeman pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934. |
| 32.1 | Certification by Kevin J. McNamara pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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---

| | | |
|:---|:---|:---|
| 32.2 |  | Certification by Michael D. Witzeman pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 97 |  | Compensation Recovery Policy |
| 101.INS |  | XBRL Instance Document\* |
| 101.SCH |  | XBRL Extension Schema\* |
| 101.CAL |  | XBRL Taxonomy Extension Calculation Linkbase\* |
| 101.DEF |  | XBRL Taxonomy Extension Definition Linkbase\* |
| 101.LAB |  | XBRL Taxonomy Extension Label Linkbase\* |
| 101.PRE |  | XBRL Taxonomy Extension Presentation Linkbase\* |
|  | \* | This exhibit is being filed by means of incorporation by reference (see Index to Exhibits on page E-1). Each other exhibit is being filed with this Annual Report on Form 10-K. |
|  | \*\* | Management contract or compensatory plan or arrangement. |
|  | **Financial Statement Schedule** | **Financial Statement Schedule** |
|  |  | See Index to Financial Statements and Financial Statement Schedule on page S-1. |

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**Item 16. Form 10-K Summary**

Not applicable.

 **‎** 

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---

| | | | |
|:---|:---|:---|:---|
| **SIGNATURES** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant  |  |
| has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |  |
| February 27, 2026 |  |  |  |
| **CHEMED CORPORATION** | **CHEMED CORPORATION** |  |  |
| /s/ Kevin J. McNamara |  |  |  |
| Kevin J. McNamara |  |  |  |
| President and Chief Executive Officer | President and Chief Executive Officer |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the |
| following persons on behalf of the registrant and in the capacities and on the dates indicated. | following persons on behalf of the registrant and in the capacities and on the dates indicated. | following persons on behalf of the registrant and in the capacities and on the dates indicated. |  |
| <u>Signature</u> | <u>Title</u> |  | &nbsp;&nbsp;<u>Date</u> |
| /s/ Kevin J. McNamara | President and Chief Executive Officer and a Director | President and Chief Executive Officer and a Director |  |
| Kevin J. McNamara | (Principal Executive Officer) |  |  |
| /s/ Michael D. Witzeman | Executive Vice President, Chief Financial Officer, and Controller | Executive Vice President, Chief Financial Officer, and Controller |  |
| Michael D. Witzeman | (Principal Financial and Accounting Officer) | (Principal Financial and Accounting Officer) | &nbsp;&nbsp;February 27, |
|  |  |  | &nbsp;&nbsp;2026 |
| Ron DeLyons\* |  |  |  |
| Patrick P. Grace\* |  |  |  |
| Christopher J. Heaney\* |  |  |  |
| Thomas C. Hutton\* | &nbsp;&nbsp; -- Directors |  |  |
| Andrea R. Lindell\* |  |  |  |
| Eileen P. McCarthy\* |  |  |  |
| John M. Mount Jr.\* |  |  |  |
| George J Walsh III\* |  |  |  |
| \* Brian C. Judkins by signing his name hereto signs this document on behalf of each of the persons indicated | \* Brian C. Judkins by signing his name hereto signs this document on behalf of each of the persons indicated | \* Brian C. Judkins by signing his name hereto signs this document on behalf of each of the persons indicated |  |
| above pursuant to powers of attorney duly executed by such persons and filed with the Securities and | above pursuant to powers of attorney duly executed by such persons and filed with the Securities and | above pursuant to powers of attorney duly executed by such persons and filed with the Securities and |  |
| Exchange Commission. |  |  |  |
| February 27, 2026 |  | /s/ Brian C. Judkins |  |
| Date |  | Brian C. Judkins | Brian C. Judkins |
|  |  | (Attorney-in-Fact) | (Attorney-in-Fact) |

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‎

------

**CHEMED CORPORATION AND SUBSIDIARY COMPANIES**

**INDEX TO FINANCIAL STATEMENTS**

**<u>2023</u>, <u>2024</u> AND <u>2025</u>**

---

| | |
|:---|:---|
|  | **<u>Page(s)</u>** |
| **Chemed Corporation Consolidated Financial Statements** |  |
| [<u>Report of Independent Registered Public Accounting Firm</u>](#Report_of_Independent) | 41**\*** |
| [<u>Consolidated Statements of Income</u>](#IS) | **43\*** |
| [<u>Consolidated Balance Sheets</u>](#BS) | **44\*** |
| [<u>Consolidated Statements of Cash Flows</u>](#CashFlows) | **45\*** |
| [<u>Consolidated Statements of Changes in Stockholders' Equity</u>](#SE) | **46\*** |
| [<u>Notes to Consolidated Financial Statements</u>](#NotestoStatements) | **47\*** |

---

**\***Indicates page numbers in Chemed Corporation 2025 Annual Report to Stockholders

The consolidated financial statements of Chemed Corporation listed above, appearing in the 2025 Annual Report to Stockholders, are incorporated herein by reference. Schedules not included have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto as listed above.

‎

------

**INDEX TO EXHIBITS**

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | Page Number |
|  |  |  | or |
|  |  |  | <u>Incorporation by</u> |
|  |  |  | <u>Reference</u> |
| Exhibit |  | File No. and  | Previous |
| <u>Number</u> |  | <u>Filing Date</u> | <u>Exhibit No.</u> |
| 3.1 | Certificate of Incorporation of Chemed Corporation (p) | Form S-3 Reg. No. 33-44177 11/26/91 | 4.1 |
| [<u>3.2</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752306005262/a5149232-ex31.txt) | [<u>Certificate of Amendment to Certificate Incorporation, dated May 15, 2006</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752306005262/a5149232-ex31.txt) | Form 8-K 5/16/06 | 3.1 |
| [<u>3.3</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752317000541/a51509297ex3_1.htm) | [<u>By-Laws of Chemed Corporation as amended December 9, 2022</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752317000541/a51509297ex3_1.htm) | Form 8-K 12/9/22 | 3.1 |
| [<u>4.1</u>](http://www.sec.gov/Archives/edgar/data/19584/000001958420000006/che-20191231xex4_1.htm) | [<u>Description of Securities</u>](http://www.sec.gov/Archives/edgar/data/19584/000001958420000006/che-20191231xex4_1.htm) | Form 10-K 2/26/20 | 4.1 |
| [<u>10.1</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752306008218/a5201823ex10_1.txt) | [<u>2006 Stock Incentive Plan, as amended August 11, 2006</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752306008218/a5201823ex10_1.txt) | Form 10-Q 8/14/06, \*\* | 10.1 |
| [<u>10.2</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752310003256/a6295507ex991.htm) | [<u>2010 Stock Incentive Plan</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752310003256/a6295507ex991.htm) | Form 8-K 5/18/10, \*\* | 99.1 |
| [<u>10.3</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752315002342/0001157523-15-002342.txt) | [<u>2015 Stock Incentive Plan</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752315002342/a51133859.htm) | Form S-8 7/15/15, \*\* | 4.5 |
| [<u>10.4</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752318001181/a51799959.htm) | [<u>2018 Stock Incentive Plan</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752318001181/a51799959.htm) | Form S-8 5/23/18, \*\* | 4.5 |
| [<u>10.5</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752322000637/a52716173.htm) | [<u>2022 Stock Incentive Plan</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752322000637/a52716173.htm) | Form S-8 5/16/22, \*\* | 4.6 |
| [<u>10.6</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276225000134/che-20250520xex4_6.htm) | [<u>2025 Stock Incentive Plan</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276225000134/che-20250520xex4_6.htm) | Form S-8 5/20/25, \*\* | 4.6 |
| [<u>10.7</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752316005842/a51358689ex10_1.htm) | [<u>Consulting Agreement with Timothy S. O'Toole dated June 16, 2016</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752316005842/a51358689ex10_1.htm) | Form 8-K 6/8/16, \*\* | 10.10 |
| [<u>10.8</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752308003813/a5678109ex10_01.htm) | [<u>Employment Agreement with Kevin J. McNamara dated May 3, 2008.</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752308003813/a5678109ex10_01.htm) | Form 8-K 5/6/08,\*\* | 10.01 |
| [<u>10.9</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752309007488/a6087067ex10-1.htm) | [<u>First Amendment to Employment Agreement with Kevin J. McNamara dated July 9, 2009</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752309007488/a6087067ex10-1.htm) | Form 10-Q 10/30/09, \*\* | 10.10 |
| [<u>10.10</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015204001868/l05867aexv10w24.txt) | [<u>Excess Benefits Plan, as restated and amended, effective June 1, 2001</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015204001868/l05867aexv10w24.txt) | Form 10-K 3/12/04,\*\* | 10.24 |
| [<u>10.11</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015204001868/l05867aexv10w25.txt) | [<u>Amendment No. 1 to Excess Benefits Plan, effective July 1, 2002</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015204001868/l05867aexv10w25.txt) | Form 10-K 3/12/04,\*\* | 10.25 |
| [<u>10.12</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015204001868/l05867aexv10w26.txt) | [<u>Amendment No. 2 to Excess Benefits Plan, effective November 7, 2003</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015204001868/l05867aexv10w26.txt) | Form 10-K 3/12/04,\*\* | 10.26 |
| 10.13 | Non-Employee Directors' Deferred Compensation Plan (p) | Form 10-K 3/24/88,\*\* | 10.10 |
| [<u>10.14</u>](http://www.sec.gov/Archives/edgar/data/19584/0000950152-99-002361.txt) | [<u>Chemed/Roto-Rooter Saving & Retirement Plan effective January 1, 1999</u>](http://www.sec.gov/Archives/edgar/data/19584/0000950152-99-002361.txt) | Form 10-K 3/25/99,\*\* | 10.25 |
| [<u>10.15</u>](http://www.sec.gov/Archives/edgar/data/19584/000102140802004235/dex1022.txt) | [<u>First Amendment to Chemed/Roto-Rooter Savings & Retirement Plan effective September 6, 2000</u>](http://www.sec.gov/Archives/edgar/data/19584/000102140802004235/dex1022.txt) | Form 10-K 3/28/02,\*\* | 10.22 |
| [<u>10.16</u>](http://www.sec.gov/Archives/edgar/data/19584/000102140802004235/dex1023.txt) | [<u>Second Amendment to Chemed/Roto-Rooter Savings & Retirement Plan effective January 1, 2001</u>](http://www.sec.gov/Archives/edgar/data/19584/000102140802004235/dex1023.txt) | Form 10-K 3/28/02,\*\* | 10.23 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| [<u>10.17</u>](http://www.sec.gov/Archives/edgar/data/19584/000102140802004235/dex1024.txt) | [<u>Third Amendment to Chemed/Roto-Rooter Savings & Retirement Plan effective December 12, 2001</u>](http://www.sec.gov/Archives/edgar/data/19584/000102140802004235/dex1024.txt) | Form 10-K 3/28/02,\*\* | 10.24 |
| 10.18 | Directors Emeriti Plan (p) | Form 10-Q 5/12/88, \*\* | 10.11 |
| [<u>10.19</u>](che-20251231xex10_19.htm) | [<u>Change in Control Severance Plan as amended August 3, 2018</u>](che-20251231xex10_19.htm) | \*, \*\* | 10.19 |
| [<u>10.20</u>](che-20251231xex10_20.htm) | [<u>Senior Executive Severance Policy as amended August 3, 2018</u>](che-20251231xex10_20.htm) | \*, \*\* | 10.20 |
| [<u>10.21</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015201001708/l87012aex10-37.txt) | [<u>Roto-Rooter Deferred Compensation Plan No.1, as amended January 1, 1998</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015201001708/l87012aex10-37.txt) | Form 10-K 3/28/01,\*\* | 10.37 |
| [<u>10.22</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015201001708/l87012aex10-38.txt) | [<u>Roto-Rooter Deferred Compensation Plan No. 2</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015201001708/l87012aex10-38.txt) | Form 10-K 3/28/01,\*\* | 10.38 |
| [<u>10.23</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752314000846/a50809562ex10_32.htm) | [<u>Form of Performance Based Restricted Stock Unit Award</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752314000846/a50809562ex10_32.htm) | Form 10-K 2/27/14,\*\* | 10.32 |
| [<u>10.24</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015205002641/l12498bexv10w51.txt) | [<u>Form of Stock Option Grant Pre-2013</u>](http://www.sec.gov/Archives/edgar/data/19584/000095015205002641/l12498bexv10w51.txt) | Form 10-K 3/28/05,\*\* | 10.51 |
| [<u>10.25</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752314000846/a50809562ex10_35.htm) | [<u>Form of Stock Option Grant - 2013</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752314000846/a50809562ex10_35.htm) | Form 10-K 2/27/14,\*\* | 10.35 |
| [<u>10.26</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752316004755/a51283782ex10.htm) | [<u>Form of Stock Option Grant - 2015</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752316004755/a51283782ex10.htm) | Form 10-K 2/26/16,\*\* | 10.30 |
| [<u>10.27</u>](http://www.sec.gov/Archives/edgar/data/19584/000001958420000006/che-20191231xex10_29.htm) | [<u>Form of Stock Option Grant - 2018</u>](http://www.sec.gov/Archives/edgar/data/19584/000001958420000006/che-20191231xex10_29.htm) | Form 10-K 2/26/20,\*\* | 10.29 |
| [<u>10.28</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276223000057/che-20221231xex10_29.htm) | [<u>Form of Stock Option Grant - 2022</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276223000057/che-20221231xex10_29.htm) | Form 10-K 2/27/23,\*\* | 10.29 |
| [<u>10.29</u>](che-20251231xex10_29.htm) | [<u>Form of Stock Option Grant - 2025</u>](che-20251231xex10_29.htm) | \*,\*\* |  |
| [<u>10.30</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752317002997/a51709692ex10_01.htm) | [<u>Settlement Agreement, effective October 30, 2017 by and among the United States of America, acting through the United States Department of Justice and on behalf of the Office of the Inspector General of the Department of Health and Human Services, VITAS Hospice Services, L.L.C., VITAS Healthcare Corporation, VITAS Healthcare Corporation of California, VITAS Healthcare Corporation of Illinois, VITAS Healthcare Corporation of Florida, VITAS Healthcare Corporation of Ohio, VITAS Healthcare Corporation of Atlantic, VITAS Healthcare of Texas, L.P., VITAS Healthcare Corporation Midwest, VITAS Healthcare Corporation of Georgia, Chemed Corporation, and the various Relators named therein</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752317002997/a51709692ex10_01.htm) | Form 8-K 11/2/17 | 10.01 |
| [<u>10.31</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752317002997/a51709692ex10_02.htm) | [<u>Corporate Integrity Agreement, effective October 30, 2017 between the Office of Inspector General of the Department of Health and Human Services and VITAS Hospice Services, L.L.C., VITAS Healthcare Corporation, VITAS Healthcare Corporation of California, VITAS Healthcare Corporation of Illinois, VITAS Healthcare Corporation of Florida, VITAS Healthcare Corporation of Ohio, VITAS Healthcare Corporation of Atlantic, VITAS Healthcare of Texas, L.P., VITAS Healthcare Corporation Midwest, and VITAS Healthcare Corporation of Georgia</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752317002997/a51709692ex10_02.htm) | Form 8-K 11/2/17 | 10.02 |
| [<u>10.32</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276222000286/che-20220629xex10_1.htm) | [<u>Fifth Amended and Restated Credit Agreement by and among Chemed Corporation, JP Morgan Chase Bank NA, and other lenders as of June 28, 2022</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276222000286/che-20220629xex10_1.htm) | Form 8-K 6/29/22\*\* | 10.10 |
| [<u>10.33</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276224000015/che-20240201xex10_1.htm) | [<u>David P. Williams Performance Share Units Grant Letter dated January 29, 2024</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276224000015/che-20240201xex10_1.htm) | Form 8-K 2/1/24 | 10.1 |
| [<u>10.34</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276225000186/che-20250630xex10_1.htm) | [<u>Nicholas M. Westfall Transition and Separation Agreement</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276225000186/che-20250630xex10_1.htm) | Form 10-Q 7/31/25 | 10.1 |

---

------

---

| | | |
|:---|:---|:---|
| [<u>14</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752314000846/a50809562ex14.htm) | [<u>Policies on Business Ethics of Chemed Corporation</u>](http://www.sec.gov/Archives/edgar/data/19584/000115752314000846/a50809562ex14.htm) | Form 10-K 2/27/14,\*\* |
| [<u>19</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276225000038/che-20241231xex19.htm) | [<u>Insider Trading Policy of Chemed Corporation</u>](http://www.sec.gov/Archives/edgar/data/19584/000156276225000038/che-20241231xex19.htm) | Form 10-K 2/28/25 |
| [<u>21</u>](che-20251231xex21.htm) | [<u>Subsidiaries of Chemed Corporation</u>](che-20251231xex21.htm) | \* |
| [<u>23</u>](che-20251231xex23.htm) | [<u>Consent of Independent Registered Public Accounting Firm</u>](che-20251231xex23.htm) | \* |
| [<u>24</u>](che-20251231xex24.htm) | [<u>Powers of Attorney</u>](che-20251231xex24.htm) | \* |
| [<u>31.1</u>](che-20251231xex31_1.htm) | [<u>Certification by Kevin J. McNamara pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934</u>](che-20251231xex31_1.htm) | \* |
| [<u>31.2</u>](che-20251231xex31_2.htm) | [<u>Certification by Michael D. Witzeman pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act of 1934</u>](che-20251231xex31_2.htm) | \* |
| [<u>32.1</u>](che-20251231xex32_1.htm) | [<u>Certification by Kevin J. McNamara pursuant to Section 906 of the Sarbanes Oxley Act of 2002</u>](che-20251231xex32_1.htm) | \* |
| [<u>32.2</u>](che-20251231xex32_2.htm) | [<u>Certification by Michael D. Witzeman pursuant to Section 906 of the Sarbanes Oxley Act of 2002</u>](che-20251231xex32_2.htm) | \* |
| [<u>97</u>](che-20251231xex97.htm) | [<u>Compensation Recovery Policy</u>](che-20251231xex97.htm) | \* |
| 101.INS | XBRL Instance Document | \* |
| 101.SCH | XBRL Extension Schema | \* |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | \* |
| 101.DEF | XBRL Taxonomy Definition Linkbase | \* |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase | \* |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase | \* |
| \* Filed herewith. | \* Filed herewith. |  |
| \*\* Management contract or compensatory plan arrangement. | \*\* Management contract or compensatory plan arrangement. |  |

---

‎

------

**EXHIBIT 13**

***Financial Review***

**Contents**

---

| | |
|:---|:---|
| [**<u>Report of Independent Registered Public Accounting Firm</u>**](#Report_of_Independent) **PCAOB 238**  | **41** |
| [**<u>Consolidated Statements of Income</u>**](#IS) | **43** |
| [**<u>Consolidated Balance Sheets</u>**](#BS) | **44** |
| [**<u>Consolidated Statements of Cash Flows</u>**](#CashFlows) | **45** |
| [**<u>Consolidated Statements of Changes in Stockholders' Equity</u>**](#SE) | **46** |
| [**<u>Notes to Consolidated Financial Statements</u>**](#NotestoStatements) | **47** |
| [**<u>Unaudited Consolidating Statements of Income</u>**](#UnauditedStatementsofIncome) | **72** |
| [**<u>Management's Discussion and Analysis of Financial Conditions and Results of Operations</u>**](#MDAA) | **75** |

---

**Management's Report on Internal Control Over Financial Reporting**

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting, as that term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorization of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company's management, including the President and Chief Executive Officer, and Vice President, Chief Financial Officer, and Controller, has conducted an evaluation of the effectiveness of its internal control over financial reporting as of December 31, 2025, based on the framework established in *Internal Control—Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this evaluation, management concluded that internal control over financial reporting was effective as of December 31, 2025, based on criteria in *Internal Control—Integrated Framework* issued by COSO.

PricewaterhouseCoopers LLP, our independent registered public accounting firm, has audited the effectiveness of the Company's internal control over financial reporting as of December 31, 2025, as stated in their report which appears on pages 41 through 42.

‎

------

**Report of Independent Registered Public Accounting** **Firm**

To the Board of Directors and Stockholders of Chemed Corporation

***Opinions on the Financial Statements and Internal Control over Financial Reporting***

We have audited the accompanying consolidated balance sheets of Chemed Corporation and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of income, of changes in stockholders' equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

***Basis for Opinions***

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

***Definition and Limitations of Internal Control over Financial Reporting***

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

‎

------

***Critical Audit Matters***

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*VITAS Revenue Implicit Price Concessions*

As described in Note 2 to the consolidated financial statements, service revenue for VITAS is reported at the amount that reflects the ultimate consideration management expects to receive in exchange for providing patient care. These amounts are due from third-party payors, primarily commercial health insurers and government programs (Medicare and Medicaid). Management estimates the transaction price for patients with deductibles and coinsurance, along with those uninsured patients, based on historical experience and current conditions. The estimate of any contractual adjustments, discounts or implicit price concessions reduces the amount of revenue initially recognized. The variable consideration is estimated based on the terms of the payment agreement, existing correspondence from the payor and the Company's historical settlement activity. The impact of these estimates is disclosed as implicit price concessions and totaled $14.3 million for the year ended December 31, 2025.

The principal considerations for our determination that performing procedures relating to VITAS revenue implicit price concessions is a critical audit matter are (i) the significant judgment by management when developing the estimate of implicit price concessions used in determining the transaction price for each third-party payor and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the ultimate consideration management expects to receive, estimates of implicit price concessions, the assessment of management's evaluation of correspondence from the payor, and the Company's historical settlement activity.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the VITAS revenue implicit price concessions estimate. These procedures also included, among others, (i) developing an independent estimate of the implicit price concessions by utilizing historical settlement activity and (ii) comparing the independent estimate to management's estimate. Evaluating the reasonableness of the implicit price concessions estimate involved inspecting evidence of correspondence from payors, testing the completeness and accuracy of historical settlement activity on a sample basis, and performing a retrospective review of consideration received subsequent to prior and current year-end to evaluate the reasonableness of the prior and current period estimated implicit price concessions applied by management.

/s/ PricewaterhouseCoopers LLP

Cincinnati, Ohio

February 27, 2026

We have served as the Company's auditor since 1971.

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| | | | |
|:---|:---|:---|:---|
| **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** | **CONSOLIDATED STATEMENTS OF INCOME** |
| Chemed Corporation and Subsidiary Companies |  |  |  |
| (in thousands, except per share data) |  |  |  |
| For the Years Ended December 31, | **2025** | 2024 | 2023 |
| Service revenues and sales (Note 2) | $**2529978** | $2431287 | $2264417 |
| Cost of services provided and goods sold (excluding depreciation) | **1706794** | 1576939 | 1465602 |
| Selling, general and administrative expenses | **417188** | 424360 | 395120 |
| Depreciation | **54557** | 52864 | 50802 |
| Amortization | **10284** | 10185 | 10063 |
| Other operating expenses (Note 20) | **2909** | 446 | 2261 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | **2191732** | 2064794 | 1923848 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from operations | **338246** | 366493 | 340569 |
| Interest expense | **(1750)** | (1780) | (3108) |
| Other income--net (Note 10) | **19282** | 34752 | 12906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | **355778** | 399465 | 350367 |
| Income taxes (Note 11) | **(90540)** | (97466) | (77858) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net Income** | $**265238** | $301999 | $272509 |
| **Earnings Per Share (Note 16)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Income | $**18.42** | $20.10 | $18.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average number of shares outstanding | **14398** | 15024 | 15050 |
| **Diluted Earnings Per Share (Note 16)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Income | $**18.34** | $19.89 | $17.93 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average number of shares outstanding | **14460** | 15186 | 15200 |
| The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. |

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| | | |
|:---|:---|:---|
| **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** |
| Chemed Corporation and Subsidiary Companies |  |  |
| (in thousands, except shares and per share data) |  |  |
| December 31, | **2025** | 2024 |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents (Note 9) | $**74515**  | $178350  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **182575**  | 171163  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **7543**  | 8193  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid income taxes | **11165**  | 11068  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | **26818**  | 25974  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | **302616**  | 394748  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments of deferred compensation plans held in trust (Notes 15 and 17) | **140347**  | 130960  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Properties and equipment, at cost, less accumulated depreciation (Note 13) | **205662**  | 200837  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease right of use asset (Note 14) | **131151**  | 127323  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identifiable intangible assets less accumulated amortization (Note 6) | **82764**  | 92206  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | **666999**  | 666744  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets (Note 12) | **8650**  | 55757  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $**1538189**  | $1668575  |
| **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $**64459**  | $44146  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued insurance | **62054**  | 56703  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes (Note 11) | **2504**  | 7593  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | **58329**  | 92073  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term lease liability (Note 14) | **40892**  | 42306  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities (Note 21) | **58892**  | 42874  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | **287130**  | 285695  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes (Note 11) | **19313**  | 25945  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation liabilities (Note 15) | **136139**  | 126035  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term lease liability (Note 14) | **102867**  | 98538  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | **13335**  | 13369  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | **558784**  | 549582  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Commitments and contingencies (Note 18)** |  |  |
| **Stockholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital stock - authorized 80,000,000 shares $1 par; issued 37,594,676 shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2024 - 37,422,348 shares) | **37595**  | 37422  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in capital | **1592197**  | 1484176  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | **2955375**  | 2721832  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock - 23,884,187 shares (2024 - 22,865,842 shares), at cost | **(3608117)** | (3126660) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation payable in Company stock (Note 15) | **2355**  | 2223  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | **979405**  | 1118993  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders' Equity | $**1538189**  | $1668575  |
| The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. |

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| | | | |
|:---|:---|:---|:---|
| **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| Chemed Corporation and Subsidiary Companies |  |  |  |
| (in thousands) |  |  |  |
| For the Years Ended December 31, | **2025** | 2024 | 2023 |
| **Cash Flows from Operating Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $**265238**  | $301999  | $272509  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **64841**  | 63049  | 60865  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | **32671**  | 32033  | 30082  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Benefit for deferred income taxes  | **(5944)** | (4138) | (8027) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncash portion of long-term incentive compensation | **4886**  | 18794  | 9267  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation settlements | **1425**  | (5750) | 2050  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncash directors' compensation | **1123**  | 1282  | 1444  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | **321**  | 321  | 580  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)/decrease in accounts receivable | **(11596)** | 10678  | (41488) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease/(increase) in inventories | **650**  | 3831  | (1732) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)/decrease in prepaid expenses | **(844)** | 4237  | 87  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable and other current liabilities | **(5194)** | (9279) | (9348) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in current income taxes | **(6217)** | 2182  | 11748  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in lease assets and liabilities | **(806)** | (674) | (1424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease/(increase) in other assets | **36835**  | (25591) | (9952) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other liabilities | **10424**  | 22749  | 12802  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other sources | **459**  | 1774  | 836  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | **388272**  | 417497  | 330299  |
| **Cash Flows from Investing Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | **(62795)** | (49531) | (56854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of fixed assets | **4568**  | 3315  | 640  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business combinations, net of cash acquired  | **(225)** | (97400) | (3994) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other uses | **(888)** | (295) | (434) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used by investing activities | **(59340)** | (143911) | (60642) |
| **Cash Flows from Financing Activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of treasury stock | **(431500)** | (361389) | (67697) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | **(31695)** | (27092) | (23502) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options  | **27152**  | 56517  | 102192  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in cash overdraft payable | **10970**  | (15749) | 15749  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital stock surrendered to pay taxes on stock-based compensation | **(8819)** | (9457) | (9557) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on other long-term debt | **-** | - | (97500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other sources/(uses) | **1125**  | (2024) | 490  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used by financing activities | **(432767)** | (359194) | (79825) |
| **(Decrease)/increase in cash and cash equivalents** | **(103835)** | (85608) | 189832  |
| Cash and cash equivalents at beginning of year | **178350**  | 263958  | 74126  |
| Cash and cash equivalents at end of year | $**74515**  | $178350  | $263958  |
| The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **CONSOLIDATED STATEMENTS OF CHANGES** | **CONSOLIDATED STATEMENTS OF CHANGES** | **CONSOLIDATED STATEMENTS OF CHANGES** | **CONSOLIDATED STATEMENTS OF CHANGES** | **CONSOLIDATED STATEMENTS OF CHANGES** | **CONSOLIDATED STATEMENTS OF CHANGES** | **CONSOLIDATED STATEMENTS OF CHANGES** |
| **IN STOCKHOLDERS' EQUITY** | **IN STOCKHOLDERS' EQUITY** | **IN STOCKHOLDERS' EQUITY** | **IN STOCKHOLDERS' EQUITY** | **IN STOCKHOLDERS' EQUITY** | **IN STOCKHOLDERS' EQUITY** | **IN STOCKHOLDERS' EQUITY** |
| Chemed Corporation and Subsidiary Companies |  |  |  |  |  |  |
| (in thousands, except per share data) |  |  |  |  | Deferred |  |
|  |  |  |  |  | Compensation |  |
|  |  |  |  | Treasury | Payable in |  |
|  | Capital | Paid-in | Retained | Stock- | Company |  |
|  | Stock | Capital | Earnings | at Cost | Stock | Total |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, 2022 | $36796  | $1149899  | $2197918  | $(2588145) | $2247  | $798715  |
| Net income | - | - | 272509  | - | - | 272509  |
| Dividends paid ($1.56 per share) | - | - | (23502) | - | - | (23502) |
| Stock awards and exercise of stock options (Note 4) | 388  | 190835  | - | (57796) | - | 133427  |
| Purchases of treasury stock (Note 19) | - | - | - | (73813) | - | (73813) |
| Other | - | 539  | - | 166  | (165) | 540  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, 2023 | $37184  | $1341273  | $2446925  | $(2719588) | $2082  | $1107876  |
| Net income | - | - | 301999  | - | - | 301999  |
| Dividends paid ($1.80 per share) | - | - | (27092) | - | - | (27092) |
| Stock awards and exercise of stock options (Note 4) | 238  | 144878  | - | (45947) | - | 99169  |
| Purchases of treasury stock (Note 19) | - | - | - | (358737) | - | (358737) |
| Excise tax on share repurchase | - | - | - | (2246) | - | (2246) |
| Other | - | (1975) | - | (142) | 141  | (1976) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Balance at December 31, 2024** | $**37422**  | $**1484176**  | $**2721832**  | $**(3126660)** | $**2223**  | $**1118993**  |
| **Net income** | **-** | **-** | **265238**  | **-** | **-** | **265238**  |
| **Dividends paid ($2.20 per share)** | **-** | **-** | **(31695)** | **-** | - | **(31695)** |
| **Stock awards and exercise of stock options (Note 4)** | **173**  | **106850**  | **-** | **(50010)** | **-** | **57013**  |
| **Purchases of treasury stock (Note 19)** | **-** | **-** | **-** | **(428035)** | **-** | **(428035)** |
| **Excise tax on share repurchase** | **-** | **-** | **-** | **(3282)** | **-** | **(3282)** |
| **Other** | **-** | **1171**  | **-** | **(130)** | **132**  | **1173**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Balance at December 31, 2025** | $**37595**  | $**1592197**  | $**2955375**  | $**(3608117)** | $**2355**  | $**979405**  |
| The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. | The Notes to Consolidated Financial Statements are integral parts of these statements. |

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.&nbsp;&nbsp;&nbsp;&nbsp;Summary of Significant Accounting Policies** 

*NATURE OF OPERATIONS*

We operate through our two wholly-owned subsidiaries: VITAS Healthcare Corporation ("VITAS") and Roto-Rooter Group, Inc. ("Roto-Rooter"). VITAS focuses on hospice care that helps make terminally ill patients' final days as comfortable as possible. Through its team of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter provides plumbing, drain cleaning, excavation and water restoration services to both residential and commercial customers. Through its network of company-owned branches, Independent Contractors and franchisees, Roto-Rooter offers plumbing, drain cleaning service and water restoration to over 90% of the U.S. population.

*PRINCIPLES OF ACCOUNTING* 

The consolidated financial statements have been prepared on a going-concern basis. The consolidated financial statements include the accounts of Chemed Corporation and its wholly owned subsidiaries. All intercompany transactions have been eliminated. We have analyzed the provisions of the Financial Accounting Standards Board ("FASB") authoritative guidance on the consolidation of variable interest entities relative to our contractual relationships with Roto-Rooter's Independent Contractors and franchisees. The guidance requires the primary beneficiary of a Variable Interest Entity ("VIE") to consolidate the accounts of the VIE. We have concluded that neither the Independent Contractors nor the franchisees are VIEs.

*CURRENT EXPECTED CREDIT LOSSES*

In June 2016, the FASB issued Accounting Standards Update "ASU No. 2016-13", Financial Instruments, Credit Losses. The Company's only material financial asset subject to ASU No. 2016-13 is accounts receivable, trade and other. The Company recognizes an allowance for credit losses related to accounts receivable to present the net amount expected to be collected as of the balance sheet date. Accounts receivable are written-off when it is determined that the amount is deemed uncollectible. The following presents a detailed discussion of the operating subsidiaries' accounts receivable and their evaluation of credit risk related to those accounts:

Roto-Rooter's trade accounts receivable are comprised mainly of amounts due from commercial entities and commercial insurance carriers. Roto-Rooter's accounts receivable are generally outstanding for 90 days or less and there are no significant amounts outstanding greater than one year. Roto-Rooter historically has not experienced significant write-offs due to credit losses. For amounts due from commercial entities, Roto-Rooter utilizes a provision matrix based on historical credit losses by aging category. For amounts due from commercial insurance carriers, mainly from water restoration revenue, Roto-Rooter periodically reviews published default tables related to commercial insurance carriers and provides an allowance. As further discussed below, Roto-Rooter assesses on a quarterly basis whether the historical rates used are expected to be representative of credit risk over the life of the account taking into consideration existing economic conditions.

In excess of 90% of VITAS' accounts receivable are from the Federal or state governments under Medicare and Medicaid. VITAS believes that it is reasonable to expect that the risk of non-payment as a result of credit issues from these government entities is zero. As such, there is no allowance for credit losses established related to these accounts. The remainder of VITAS' accounts are from commercial insurance carriers. VITAS' accounts are generally outstanding for 90 days or less and there are no significant amounts outstanding greater than one year. VITAS historically has not experienced significant write-offs due to credit losses. VITAS periodically reviews published default tables related to commercial insurance carriers and provides an allowance. VITAS assesses on a quarterly basis whether these default rates are expected to be representative of credit risk over the life of the account taking into consideration existing economic conditions.

As further discussed in Note 3, Chemed has $45.5 million in standby letters of credit outstanding. These letters of credit are with large, highly rated financial institutions. The Company periodically reviews published default tables related to these institutions to assess the need for an allowance. Chemed believes that any expected credit loss related to outstanding letters of credit based on current economic conditions is not material. The allowance for credit losses is not material at December 31, 2025.

*CASH EQUIVALENTS* 

Cash equivalents comprise short-term, highly liquid investments, including overnight deposits and money market funds that have original maturities of three months or less.

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*CONCENTRATION OF RISK*

As of December 31, 2025, and 2024, approximately 58% and 64%, respectively, of VITAS' total accounts receivable balances were from Medicare and 34% and 31%, respectively, of VITAS' total accounts receivable balances were due from various state Medicaid or managed Medicaid programs. Combined accounts receivable from Medicare, Medicaid, and managed Medicaid represent approximately 78% of the consolidated net accounts receivable in the accompanying consolidated balance sheets as of December 31, 2025.

VITAS has a pharmacy services contract with one service provider for specified pharmacy services related to its hospice operations. Similarly, VITAS obtains the majority of its medical supplies from a single vendor. A large majority of VITAS' pharmaceutical and medical supplies purchases are from these vendors. The pharmaceutical and medical supplies purchased by VITAS are available through many providers in the United States. However, a disruption from VITAS' main service providers could adversely impact VITAS' operations, including temporary logistical challenges and increased cost associated with getting medication and medical supplies to our patients.

*INVENTORIES* 

Substantially all of the inventories are either general merchandise or finished goods. Inventories are stated at the lower of cost or net realizable value. For determining the value of inventories, cost methods that reasonably approximate the first-in, first-out ("FIFO") method are used.

*DEPRECIATION AND PROPERTIES AND EQUIPMENT* 

Depreciation of properties and equipment is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the remaining lease terms (excluding option terms) or their useful lives. Expenditures for maintenance, repairs, renewals and betterments that do not materially prolong the useful lives of the assets are expensed as incurred. The cost of property retired or sold and the related accumulated depreciation are removed from the accounts, and the resulting gain or loss is reflected currently in other operating expenses/(income).

Expenditures for major software purchases and software developed for internal use are capitalized and depreciated using the straight-line method over the estimated useful lives of the assets. For software developed for internal use, external direct costs for materials and services and certain internal payroll and related fringe benefit costs are capitalized in accordance with the FASB's authoritative guidance on accounting for the costs of computer software developed or obtained for internal use.

The weighted average lives of our property and equipment at December 31, 2025, were:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buildings and building improvements | 13.9 | yrs.  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transportation equipment  | 8.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment  | 5.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computer software  | 3.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furniture and fixtures  | 4.5 |  |

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*GOODWILL AND INTANGIBLE ASSETS*

The table below shows a rollforward of goodwill (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  |  | **Roto-** |  |
|  | **Vitas** | **Rooter** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, 2023 | $334063  | $250954  | $585017  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business combinations | 70803  | 11062  | 81865  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency adjustments | - | (138) | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, 2024 | $404866  | $261878  | $666744  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Business combinations** |  | **185**  | **185**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Foreign currency adjustments** | **-** | **70**  | **70**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Balance at December 31, 2025** | $**404866**  | $**262133**  | $**666999**  |

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Identifiable, definite-lived intangible assets arise from purchase business combinations and are amortized using either an accelerated method or the straight-line method over the estimated useful lives of the assets. The selection of an amortization method is based on which method best reflects the economic pattern of usage of the asset. Reacquired franchise rights are amortized over the remaining term of the franchise agreement at the time of acquisition. The weighted average lives of our identifiable, definite-lived intangible assets at December 31, 2025, were:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Covenants not to compete  | 6.3 | yrs.  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reacquired franchise rights | 7.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Referral networks  | 14.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer lists  | 16.8 |  |

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The date of our annual goodwill and indefinite-lived intangible asset impairment analysis is October 1. The VITAS trade name is considered to have an indefinite life. We also capitalize the direct costs of obtaining licenses to operate either hospice programs or plumbing operations subject to a minimum capitalization threshold. These costs are amortized over the life of the license using the straight-line method. Certificates of Need ("CON"), which are required in certain states for hospice operations, are generally granted without expiration and thus, we believe them to be indefinite-lived assets subject to impairment testing.

We consider that Roto-Rooter Corp. ("RRC"), Roto-Rooter Services Co. ("RRSC") and VITAS are appropriate reporting units for testing goodwill impairment. We consider RRC and RRSC separate reporting units but one operating segment. This is appropriate as they each have their own set of general ledger accounts that can be analyzed at "one level below an operating segment" per the definition of a reporting unit in FASB guidance.

We completed our qualitative analysis for impairment of goodwill and our indefinite-lived intangible assets as of October 1, 2025. Based on our assessment, we do not believe that it is more likely than not that our reporting units or indefinite-lived assets fair values are less than their carrying values.

*LONG-LIVED ASSETS* 

If we believe a triggering event may have occurred that indicates a possible impairment of our long-lived assets, we perform an estimate and valuation of the future benefits of our long-lived assets (other than goodwill, the VITAS trade name and capitalized CON costs) based on key financial indicators. If the projected undiscounted cash flows of a major business unit indicate that properties and equipment or identifiable, definite-lived intangible assets' have been impaired, a write-down to fair value is made.

*LEASE ACCOUNTING*

In February 2016, the FASB issued Accounting Standards Update "ASU No. 2016-02 Leases" which introduced a lessee model that brings most leases onto the balance sheet and updates lessor accounting to align with changes in the lessee model and the revenue recognition standard. This standard is also referred to as Accountings Standards Codification No. 842 ("ASC 842").

Our leases have remaining terms of less than 1 year to 13 years, some of which include options to extend the lease for up to 5 years, and some of which include options to terminate the lease within 1 year. We made a policy election to exclude leases with a lease term less than 12 months from being recorded on the balance sheet. We adopted the practical expedient related to the combining of lease and non-lease components, which allows us to account for the lease and non-lease components as a single lease component. We do not currently have any finance leases, all lease information disclosed is related to operating leases.

Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for inpatient units ("IPUs") and/or contract beds within hospitals. Roto-Rooter mainly has leased office space.

Roto-Rooter purchases equipment and leases it to certain of its Independent Contractors. We analyzed these leases in accordance with ASC 842 and determined they are operating leases. As a result, Roto-Rooter will continue to capitalize the equipment underlying these leases, depreciate the equipment and recognize rental income. See Note 14 for the detail of lease accounting.

*CLOUD COMPUTING*

As of December 31, 2025, Roto-Rooter has no significant capitalized implementation cost related to cloud computing. There are two projects included in prepaid assets in the accompanying balance sheet which have implementation costs of $415,000. No amortization has been recorded for these two projects as they have not been placed into service.

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VITAS utilizes a human resource system that is considered a cloud computing arrangement. We have capitalized approximately $5.6 million related to implementation of this project which were included in prepaid assets in the accompanying balance sheets. The VITAS human resource system was placed into service in January 2020 and was amortized through August 2025. For each of the years ending December 31, 2025, 2024 and 2023, amortization expense of $663,000, $995,000, and $995,000 has been recognized, respectively.

*OTHER ASSETS*

Debt issuance costs are included in other assets. Issuance costs related to revolving credit agreements are amortized using the straight-line method, over the life of the agreement. All other issuance costs are amortized using the effective interest method over the life of the debt. See Note 12 for the detail of other assets.

*SALES TAX*

The Roto-Rooter segment collects sales tax from customers when required by state and federal laws. We record the amount of sales tax collected net in the accompanying consolidated statements of income.

*OPERATING EXPENSES*

Cost of services provided and goods sold (excluding depreciation) includes salaries, wages and benefits of service providers and field personnel, material costs, medical supplies and equipment, pharmaceuticals, insurance costs, service vehicle costs and other expenses directly related to providing service revenues or generating sales. Selling, general and administrative expenses include salaries, wages, stock-based compensation expense and benefits of selling, marketing and administrative employees, advertising expenses, communication expenses, office rent and operating costs, legal, banking and professional fees and other administrative costs. The cost associated with VITAS sales personnel is included in cost of services provided and goods sold (excluding depreciation).

*ADVERTISING* 

We expense the production costs of advertising the first time the advertising takes place. We pay for and expense the cost of internet advertising and placement on a "per click" basis. Similarly, the majority of our telephone directory listings and certain types of internet advertising are paid for and expensed on a "cost per call" basis. Advertising expense for the year ended December 31, 2025 was $83.1 million (2024 - $78.8 million; 2023 – $72.2 million).

*OTHER CURRENT LIABILITIES*

See Note 21 for the detail of other current liabilities.

*STOCK-BASED COMPENSATION PLANS*

Stock-based compensation cost is measured at the grant date, based on the fair value of the award and recognized as expense over the employee's requisite service period on a straight-line basis. See Note 4 for the detail on stock-based compensation.

*INSURANCE ACCRUALS* 

For our Roto-Rooter segment and Corporate Office, we initially self-insure for all casualty insurance claims (workers' compensation, auto liability and general liability). As a result, we closely monitor and frequently evaluate our historical claims experience to estimate the appropriate level of accrual for self-insured claims. Our third-party administrator ("TPA") processes and reviews claims on a monthly basis. Currently, our exposure on any single claim is capped by stop-loss coverage at $750,000, with the exception of auto liability claims which are capped at $3.0 million of stop-loss coverage. In developing our estimates, we accumulate historical claims data for the previous 10 years to calculate loss development factors ("LDF") by insurance coverage type. LDFs are applied to known claims to estimate the ultimate potential liability for known and unknown claims for each open policy year. LDFs are updated annually. Because this methodology relies heavily on historical claims data, the key risk is whether the historical claims are an accurate predictor of future claims exposure. The risk also exists that certain claims have been incurred and not reported on a timely basis. To mitigate these risks, in conjunction with our TPA, we closely monitor claims to ensure timely accumulation of data and compare claims trends with the industry experience of our TPA.

For the VITAS segment, we initially self-insure for workers' compensation claims. Currently, VITAS' exposure on any single claim is capped by stop-loss coverage at $1,000,000. For VITAS' self-insurance accruals for workers' compensation, the valuation methods used are similar to those used internally for our other business units. We are also insured for other risks with respect to professional liability with a deductible of $1,000,000.

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Our casualty insurance liabilities are recorded gross before any estimated recovery for amounts exceeding our stop loss limits. Estimated recoveries from insurance carriers are recorded as accounts receivable. Claims experience adjustments to our casualty and workers' compensation accrual for the years ended December 31, 2025, 2024 and 2023, were net pretax expense/(credits) of $81,000, ($10,374,000), and ($6,862,000) respectively.

*INCOME TAXES*

We adopted ASU 2023-09 for the year ending December 31, 2025, and applied a retrospective approach to all periods presented in our consolidated financial statements. In December 2023, the FASB issued Accounting Standards Update "ASU 2023-09 – Income Tax Disclosure". The guidance required a reconciliation between the amount of reported income tax expense from continuing operations and the amount computed from the income multiplied by the United States federal income tax rate. In addition, the guidance required an annual disaggregation between the income tax rate reconciliation and potential key categories: state and local income tax, tax credits, changes in valuation allowances, nontaxable or nondeductible tax items and changes in unrecognized tax benefits. Those not meeting the disaggregation conditions were aggregated within other adjustments. See Note 11 for the detail of income taxes.

Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amount of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred tax assets will not be realized due to insufficient taxable income within the carryback or carryforward period available under the tax laws. Deferred tax assets and liabilities are adjusted for the effects of changes in law and rates on the date of enactment.

We are subject to income taxes in Canada, U.S. federal and most state jurisdictions. Judgement is required to determine our provision for income taxes. Our financial statements reflect expected future tax consequences of such uncertain positions assuming the taxing authorities' full knowledge of the position and all relevant facts.

Our effective income tax rate was 25.4%, 24.4% and 22.2% for the years ended December 31, 2025, 2024, and 2023, respectively. Excess tax expense on stock compensation increased our income tax expense by $696,000 for the year ended December 31, 2025 and excess tax benefit on stock options reduced our income tax expenses by $4.4 million, and $4.3 million for the years ended December 31, 2024 and 2023, respectively.

During the third quarter of 2023, the Company recognized a tax benefit from realignment of its state and local corporate tax structure based on the location of operating resources and profitability by business segment. This benefit includes a reduction in current state and local tax expense and a one time benefit of $4.2 million in reduction of deferred tax liabilities reflecting the lower tax rates.

*CONTINGENCIES* 

As discussed in Note 18, we are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and reasonably estimable. We record legal fees associated with legal and regulatory actions as the costs are incurred. We disclose material loss contingencies that are probable but not reasonably estimable and those that are at least reasonably possible.

*BUSINESS COMBINATIONS*

We account for acquired businesses using the acquisition method of accounting. All assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. The determination of fair value involves estimates and the use of valuation techniques when market value is not readily available. We use various techniques to determine fair value in accordance with accepted valuation models, primarily the income approach. The significant assumptions used in developing fair values include, but are not limited to, revenue growth rates, the amount and timing of future cash flows, discount rates, useful lives, royalty rates and future tax rates. The excess of purchase price over the fair value of assets and liabilities acquired is recorded as goodwill. See Note 7 for discussion of recent acquisitions.

*ESTIMATES* 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

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**2.&nbsp;&nbsp;&nbsp;&nbsp;Revenue Recognition**

In May 2014, the FASB issued Accounting Standards Update "ASU No. 2014-09 – Revenue from Contracts with Customers." The standard and subsequent amendments are theoretically intended to develop a common revenue standard for removing inconsistencies and weaknesses, improve comparability, provide for more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. The standard is also referred to as Accounting Standards Codification No. 606 ("ASC 606").

*<u>VITAS</u>*

Service revenue for VITAS is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing patient care. These amounts are due from third-party payors, primarily commercial health insurers and government programs (Medicare and Medicaid), and includes variable consideration for revenue adjustments due to settlements of audits and reviews, as well as certain hospice-specific revenue capitations. Amounts are generally billed monthly or subsequent to patient discharge. Subsequent changes in the transaction price initially recognized are not significant.

Hospice services are provided on a daily basis and the type of service provided is determined based on a physician's determination of each patient's specific needs on that given day. Reimbursement rates for hospice services are on a per diem basis regardless of the type of service provided or the payor. Reimbursement rates from government programs are established by the appropriate governmental agency and are standard across all hospice providers. Reimbursement rates from health insurers are negotiated with each payor and generally structured to closely mirror the Medicare reimbursement model. The types of hospice services provided and associated reimbursement model for each are as follows:

*Routine Home Care* occurs when a patient receives hospice care in their home, including a nursing home setting. The routine home care rate is paid for each day that a patient is in a hospice program and is not receiving one of the other categories of hospice care. For Medicare patients, the routine home care rate reflects a two-tiered rate, with a higher rate for the first 60 days of a hospice patient's care and a lower rate for days 61 and after. In addition, there is a Service Intensity Add-on payment which covers direct home care visits conducted by a registered nurse or social worker in the last seven days of a hospice patient's life, reimbursed up to 4 hours per day in 15 minute increments at the continuous home care rate.

*General Inpatient Care* occurs when a patient requires services in a controlled setting for a short period of time for pain control or symptom management which cannot be managed in other settings. General inpatient care services must be provided in a Medicare or Medicaid certified hospital or long-term care facility or at a freestanding inpatient hospice facility with the required registered nurse staffing.

*Continuous Home Care* is provided to patients while at home, including a nursing home setting, during periods of crisis when intensive monitoring and care, primarily nursing care, is required in order to achieve palliation or management of acute medical symptoms. Continuous home care requires a minimum of 8 hours of care within a 24 hour day, which begins at midnight. The care must be predominantly nursing care provided by either a registered nurse or licensed nurse practitioner. While the published Medicare continuous home care rates are daily rates, Medicare pays for continuous home care in 15 minute increments. This 15 minute rate is calculated by dividing the daily rate by 96.

*Respite Care* permits a hospice patient to receive services on an inpatient basis for a short period of time in order to provide relief for the patient's family or other caregivers from the demands of caring for the patient. A hospice can receive payment for respite care for a given patient for up to five consecutive days at a time, after which respite care is reimbursed at the routine home care rate.

Each level of care represents a separate promise under the contract of care and is provided independently for each patient contingent upon the patient's specific medical needs as determined by a physician. However, the clinical criteria used to determine a patient's level of care is consistent across all patients, given that, each patient is subject to the same payor rules and regulations. As a result, we have concluded that each level of care is capable of being distinct and is distinct in the context of the contract. Furthermore, we have determined that each level of care represents a stand ready service provided as a series of either days or hours of patient care. We believe that the performance obligations for each level of care meet criteria to be satisfied over time. VITAS recognizes revenue based on the service output. VITAS believes this to be the most faithful depiction of the transfer of control of services as the patient simultaneously receives and consumes the benefits provided by our performance. Revenue is recognized on a daily or hourly basis for each patient in accordance with the reimbursement model for each type of service. VITAS' performance obligations relate to contracts with an expected duration of less than one year. Therefore, VITAS has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or

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partially unsatisfied at the end of the reporting period. The unsatisfied or partially satisfied performance obligations referred to above relate to bereavement services provided to patients' families for at least 12 months after discharge.

Care is provided to patients regardless of their ability to pay. Patients who meet our criteria for charity care are provided care without charge. There is no revenue or associated accounts receivable in the accompanying consolidated financial statements related to charity care. The cost of providing charity care during the years ended December 31, 2025, 2024 and 2023, was $8.6 million, $9.2 million and $8.1 million, respectively and is included in cost of services provided and goods sold. The cost of charity care is calculated by taking the ratio of charity care days to total days of care and multiplying by total cost of care.

Generally, patients who are covered by third-party payors are responsible for related deductibles and coinsurance which vary in amount. VITAS also provides service to patients without a reimbursement source and may offer those patients discounts from standard charges. VITAS estimates the transaction price for patients with deductibles and coinsurance, along with those uninsured patients, based on historical experience and current conditions. The estimate of any contractual adjustments, discounts or implicit price concessions reduces the amount of revenue initially recognized. Subsequent changes to the estimate of the transaction price are recorded as adjustments to patient service revenue in the period of change. Subsequent changes that are determined to be the result of an adverse change in the patients' ability to pay (i.e. change in credit risk) are recorded as bad debt expense. VITAS has no material adjustments related to subsequent changes in the estimate of the transaction price or subsequent changes as the result of an adverse change in the patient's ability to pay for any period reported.

Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation. Compliance with such laws and regulations may be subject to future government review and interpretation. Additionally, the contracts we have with commercial health insurance payors provide for retroactive audit and review of claims. Settlement with third party payors for retroactive adjustments due to audits, reviews or investigations are considered variable consideration and are included in the determination of the estimated transaction price for providing patient care. The variable consideration is estimated based on the terms of the payment agreement, existing correspondence from the payor and our historical settlement activity. These estimates are adjusted in future periods, as new information becomes available.

We are subject to certain limitations on Medicare payments for services which are considered variable consideration, as follows:

*Inpatient Cap*. If the number of inpatient care days any hospice program provides to Medicare beneficiaries exceeds 20% of the total days of hospice care such program provided to all Medicare patients for an annual period beginning September 28, the days in excess of the 20% figure may be reimbursed only at the routine homecare rate. None of VITAS' hospice programs exceeded the payment limits on inpatient services during the years ended December 31, 2025, 2024 and 2023.

*Medicare Cap*. We are also subject to a Medicare annual per-beneficiary cap ("Medicare cap"). Compliance with the Medicare cap is measured in one of two ways based on a provider election. The "streamlined" method compares total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by that Medicare provider number with the product of the per-beneficiary cap amount and the number of Medicare beneficiaries electing hospice care for the first time from that hospice program or programs from September 28 through September 27 of the following year. At December 31, 2025, all our programs except one are using the "streamlined" method.

The "proportional" method compares the total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by the Medicare provider number between September 28 and September 27 of the following year with the product of the per beneficiary cap amount and a pro-rated number of Medicare beneficiaries receiving hospice services from that program during the same period. The pro-rated number of Medicare beneficiaries is calculated based on the ratio of days the beneficiary received hospice services during the measurement period to the total number of days the beneficiary received hospice services.

We actively monitor each of our hospice programs, by provider number, as to their specific admission, discharge rate and median length of stay data, as well as differences between reimbursement rate increases versus the increase in the per beneficiary cap, in an attempt to determine whether revenues are likely to exceed the annual per-beneficiary Medicare cap. Should we determine that revenues for a program are likely to exceed the Medicare cap based on projected trends, we attempt to institute corrective actions, which include changes to the patient mix and increased patient admissions. However, should we project our corrective action will not prevent that program from exceeding its Medicare cap, we estimate revenue recognized during the government fiscal year that will require repayment to the Federal government under the Medicare cap and record an adjustment to revenue of an amount equal to a ratable portion of our best estimate for the year.

During the year ended December 31, 2025 we recorded $27.2 million in Medicare cap revenue reduction related to five programs' projected 2025 measurement period liability and five programs' 2026 measurement period liability.

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During the year ended December 31, 2024 we recorded $8.4 million in Medicare cap revenue reduction related to three programs' projected 2024 measurement period liability and five programs' 2025 measurement period liability.

During the year ended December 31, 2023 we recorded $8.0 million in Medicare cap revenue reduction related to two programs' projected 2023 measurement period liability and six programs' 2024 measurement period liability.

At December 31, 2025 and 2024, the Medicare cap liability included in other current liabilities on the accompanying balance sheets was $30.9 million and $13.6 million, respectively.

For VITAS' patients in the nursing home setting in which Medicaid pays the nursing home room and board, VITAS serves as a pass-through between Medicaid and the nursing home. We are responsible for paying the nursing home for that patient's room and board. Medicaid reimburses us for 95% of the amount we have paid. This results in a 5% net expense for VITAS related to nursing home room and board. This transaction creates a performance obligation in that VITAS is facilitating room and board being delivered to our patient. As a result, the 5% net expense is recognized as a contra-revenue account under ASC 606 in the accompanying financial statements.

The composition of patient care service revenue by payor and level of care for the year ended December 31, 2025 is as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Medicare** | **Medicaid** | **Commercial** | **Total** |
| **Routine home care** | $**1363503** | **46137** | **34854** | $**1444494** |
| **Inpatient care** | **115542** | **8553** | **8953** | **133048** |
| **Continuous care** | **79787** | **2601** | **4273** | **86661** |
|  | $**1558832** | $**57291** | $**48080** | $**1664203** |
| **All other revenue - self-pay, respite care, etc.** |  |  |  | **22926** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Subtotal** |  |  |  | $**1687129** |
| **Medicare cap adjustment** |  |  |  | **(27161)** |
| **Implicit price concessions** |  |  |  | **(14305)** |
| **Room and board, net** |  |  |  | **(15562)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net revenue** |  |  |  | $**1630101** |

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The composition of patient care service revenue by payor and level of care for the year ended December 31, 2024 is as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Medicare | Medicaid | Commercial | Total |
| Routine home care | $1249009 | 49807 | 27672 | $1326488 |
| Inpatient care | 103868 | 8900 | 7836 | 120604 |
| Continuous care | 92417 | 3375 | 3954 | 99746 |
|  | $1445294 | $62082 | $39462 | $1546838 |
| All other revenue - self-pay, respite care, etc. |  |  |  | 19455 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal |  |  |  | $1566293 |
| Medicare cap adjustment |  |  |  | (8414) |
| Implicit price concessions |  |  |  | (13597) |
| Room and board, net |  |  |  | (13304) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net revenue |  |  |  | $1530978 |

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The composition of patient care service revenue by payor and level of care for the year ended December 31, 2023 is as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Medicare | Medicaid | Commercial | Total |
| Routine home care | $1067629 | 44833 | 23975 | $1136437 |
| Inpatient care | 97873 | 8698 | 5848 | 112419 |
| Continuous care | 78994 | 3123 | 3557 | 85674 |
|  | $1244496 | $56654 | $33380 | $1334530 |
| All other revenue - self-pay, respite care, etc. |  |  |  | 13582 |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal |  |  |  | $1348112 |
| Medicare cap adjustment |  |  |  | (8000) |
| Implicit price concessions |  |  |  | (14196) |
| Room and board, net |  |  |  | (10851) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net revenue |  |  |  | $1315065 |

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*<u>Roto-Rooter</u>*

Roto-Rooter provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers primarily in the United States. Services are provided through a network of company-owned branches, Independent Contractors and franchisees. Service revenue for Roto-Rooter is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing services.

Roto-Rooter owns and operates branches focusing mainly on large population centers in the United States. Roto-Rooter's primary lines of business in company-owned branches consist of plumbing, sewer and drain cleaning, excavation and water restoration. For purposes of ASC 606 analysis, plumbing, sewer and drain cleaning, and excavation have been combined into one portfolio and are referred to as "short-term core services". Water restoration is analyzed as a separate portfolio. The following describes the key characteristics of these portfolios:

*Short-term Core Services* are plumbing, drain and sewer cleaning and excavation services. These services are provided to both commercial and residential customers. The duration of services provided in this category range from a few hours to a few days. There are no significant warranty costs or on-going obligations to the customer once a service has been completed. For residential customers, payment is usually received at the time of job completion before the Roto-Rooter technician leaves the residence. Commercial customers may be granted credit subject to internally designated authority limits and credit check guidelines. If credit is granted, payment terms are generally 30 days or less.

Each job in this category is a distinct service with a distinct performance obligation to the customer. Revenue is recognized at the completion of each job. Variable consideration consists of pre-invoice discounts and post-invoice discounts. Pre-invoice discounts are given in the form of coupons or price concessions. Post-invoice discounts consist of credit memos generally granted to resolve customer service issues. Variable consideration is estimated based on historical activity and recorded at the time service is completed.

*Water Restoration Services* involve the remediation of water and humidity after a flood. These services are provided to both commercial and residential customers. The duration of services provided in this category generally ranges from 3 to 5 days. There are no significant warranties or on-going obligations to the customer once service has been completed. The majority of these services are paid in part by the customer's insurance company. Variable consideration relates primarily to allowances taken by insurance companies upon payment. Variable consideration is estimated based on historical activity and recorded at the time service is completed.

For both short-term core services and water restoration services, Roto-Rooter satisfies its performance obligation at a point in time. The services provided generally involve fixing plumbing, drainage or flood-related issues at the customer's property. At the time service is complete, the customer acknowledges its obligation to pay for service and its satisfaction with the service performed. This provides evidence that the customer has accepted the service and Roto-Rooter is now entitled to payment. As such, Roto-Rooter recognizes revenue for these services upon completion of the job and receipt of customer acknowledgement. Roto-Rooter's performance obligations for short-term core services and water restoration services relate to contracts with an expected duration of less than a year. Therefore, Roto-Rooter has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Roto-Rooter does not have significant unsatisfied or partially unsatisfied performance obligations at the time of initial revenue recognition for short-term core or water restoration services.

------

Roto-Rooter owns the rights to certain territories and contracts with independent third-parties to operate the territory under Roto-Rooter's registered trademarks ("Independent Contractors"). Such contracts are for a specified term but cancellable by either party without penalty with 90 days' advance notice. Under the terms of these arrangements, Roto-Rooter provides certain back office support and advertising along with a limited license to use Roto-Rooter's registered trademarks. The Independent Contractor is responsible for all day-to-day management of the business including staffing decisions and pricing of services provided. All performance obligations of Roto-Rooter cease at the termination of the arrangement.

Independent Contractors pay Roto-Rooter a standard fee calculated as a percentage of their cash collection from weekly sales. The primary value for the Independent Contractors under these arrangements is the right to use Roto-Rooter's registered trademarks. Roto-Rooter recognizes revenue from Independent Contractors over-time (weekly) as the Independent Contractor's labor sales are completed and payment from customers are received. Payment from Independent Contractors is also received on a weekly basis. The use of Roto-Rooter's registered trademarks and advertising provides immediate value to the Independent Contractor as a result of Roto-Rooter's nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements.

Roto-Rooter has licensed the rights to operate under Roto-Rooter's registered trademarks in other territories to franchisees. The contract is for a 10 year term but cancellable by Roto-Rooter for cause with 60 day advance notice without penalty. The franchisee may cancel the contract for any reason with 60 days advance notice without penalty. Under the terms of the contract, Roto-Rooter provides national advertising and consultation on various aspects of operating a Roto-Rooter business along with the right to use Roto-Rooter's registered trademarks. The franchisee is responsible for all day-to-day management of the business including staffing decisions, pricing of services provided and local advertising spend and placement. All performance obligations of Roto-Rooter cease at the termination of the arrangement.

Franchisees pay Roto-Rooter a standard monthly fee based on the population within the franchise territory. The standard fee is revised on a yearly basis based on changes in the Consumer Price Index for All Urban Consumers. The primary value for the franchisees under this arrangement is the right to use Roto-Rooter's registered trademarks for plumbing, drain care cleaning and water restoration services. Roto-Rooter recognizes revenue from franchisees over-time (monthly). Payment from franchisees is also received on a monthly basis. The use of Roto-Rooter's registered trademarks and advertising provides immediate value to the franchisees as a result of Roto-Rooter's nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements.

The composition of disaggregated revenue for the years ended December 31, 2025, 2024 and 2023 is as follows (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | 2024 | 2023 |
| Drain cleaning | $**231794** | $237534 | $249069 |
| Plumbing | **182721** | 181370 | 196695 |
| Excavation | **238390** | 227413 | 233196 |
| Other  | **786** | 883 | 936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal - short term core | **653691** | 647200 | 679896 |
| Water restoration | **190216** | 178016 | 185550 |
| Independent contractors | **69405** | 72777 | 85749 |
| Franchisee fees | **5718** | 5814 | 5658 |
| Other | **18894** | 23329 | 19083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross revenue | $**937924** | $927136 | $975936 |
| Implicit price concessions and credit memos | **(38047)** | (26827) | (26584) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net revenue | $**899877** | $900309 | $949352 |

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**3.&nbsp;&nbsp;&nbsp;&nbsp;Long-Term Debt and Lines of Credit**

On June 28, 2022, we replaced our existing credit facility with a fifth amended and restated Credit Agreement ("2022 Credit Facilities"). Terms of the 2022 Credit Facilities consist of a five-year $450 million revolver as well as a five-year $100 million term loan. The 2022 Credit Facilities have a floating interest rate that is generally the secured overnight financing rate ("SOFR") plus an additional tiered rate which varies based on our current leverage ratio. As of December 31, 2025 and 2024, the interest rate is SOFR plus 100 basis points. The 2022 Credit Facilities include an expansion feature that provides the Company the opportunity to increase its revolver and/or term loan by an additional $250 million.

------

The term loan was repaid in 2023. This prepayment reduced the total borrowing capacity of the 2022 Credit Facilities from $550.0 million to $450.0 million There were no prepayment penalties associated with repayments. There are no significant deferred debt issuance costs capitalized related to the term loan.

Capitalized interest was not material for any of the periods shown. Summarized below are the total amounts of interest paid during the years ended December 31 (in thousands):

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| | |
|:---|:---|
| **2025** | $**1345** |
| 2024 | 1161 |
| 2023 | 2645 |

---

The 2022 Credit Facilities contains the following quarterly financial covenants effective as of December 31, 2025:

---

| | | |
|:---|:---|:---|
|  |  | Chemed |
| Description | Requirement | December 31, 2025 |
| Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) | < 3.50 to 1.00 | **(0.05) to 1.00** |
| Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense) | > 3.00 to 1.00 | **260.84 to 1.00** |

---

We are in compliance with all debt covenants as of December 31, 2025. We have issued $45.5 million in standby letters of credit as of December 31, 2025 for insurance purposes. Issued letters of credit reduce our available credit under the 2022 Credit Facilities. As of December 31, 2025, we have approximately $404.5 million of unused lines of credit available and eligible to be drawn down under our revolving credit facility.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Stock-Based Compensation Plans**

We have four stock incentive plans under which a total of 5.5 million shares were able to be issued to key employees and directors through a grant of stock options, stock awards and/or performance stock units ("PSUs"). The Compensation/Incentive Committee ("CIC") of the Board of Directors administers these plans.

We grant stock options, stock awards and PSUs to our officers, other key employees and directors to better align their long-term interests with those of our shareholders. We grant stock options at an exercise price equal to the market price of our stock on the date of grant. Options vest ratably annually over a three year period. Those granted after 2014 have a contractual life of 5 years. Unrestricted stock awards generally are granted to our non-employee directors annually at the time of our annual meeting. PSUs are contingent upon achievement of multi-year earnings per share ("EPS") targets or total shareholder return ("TSR") targets. Upon achievement of targets, PSUs are converted to unrestricted shares of stock.

At the end of 2023, the then Chief Financial Officer (CFO) transitioned to an employee advisor role. In early 2024, in connection with this change of roles, the CFO's employment agreement terminated, and the CFO was given a one-time grant of 6,424 PSUs to be paid based on the Company's TSR performance for the fiscal years 2024 to 2026. This one-time grant is structured the same as the Company's standard TSR-based PSU grants with the exception that there are no future service requirements to be satisfied by the employee and a minimum value of shares are guaranteed. Based on the structure of the one-time award, the entire value of the award, $5.3 million, was recognized as compensation expense in SG&A in the consolidated statements of income for the period ended March 31, 2024.

We recognize the cost of stock options, stock awards and PSUs on a straight-line basis over the service life of the award, generally the vesting period. We include the cost of all stock-based compensation in selling, general and administrative expense.

In May 2025, the CIC granted 1,939 unrestricted shares of stock to the Company's outside directors. In December 2025, the CIC granted 1,702 unrestricted shares of stock to one former VITAS executive as part of a severance agreement.

*PERFORMANCE AWARDS*

The CIC determines a targeted number of PSUs to be granted to each participant. A participant can ultimately receive up to 200% of the targeted PSUs based upon exceeding the respective EPS and TSR targets.

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In February 2023, 2024, and 2025, the CIC granted PSUs contingent upon the achievement of certain TSR targets as compared to the TSR of a group of peer companies for the three-year measurement period, at which date the awards may vest. We utilize a Monte Carlo simulation approach in a risk-neutral framework with inputs including historical volatility and the risk-free rate of interest to value these TSR awards. We amortize the total estimated cost over the service period of the award.

In February 2023, 2024, and 2025, the CIC granted PSUs contingent on the achievement of certain EPS targets over the three-year measurement period. At the end of each reporting period, we estimate the number of shares of stock we believe will ultimately vest and record that expense over the service period of the award.

Comparative data for the PSUs include:

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| | | | |
|:---|:---|:---|:---|
|  | **2025 Awards** | 2024 Awards | 2023 Awards |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TSR Awards** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of stock granted - target | **7920**  | 7133  | 8107  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per-share fair value | $**761.79**  | $673.71  | $633.32  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volatility | **22.0%** | 21.8% | 25.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk-free interest rate | **4.2%** | 4.4% | 4.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EPS Awards** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of stock granted - target | **7920**  | 7133  | 8107  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per-share fair value | $**557.31**  | $586.49  | $515.12  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TSR Awards - Former CFO One-Time Grant** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of stock granted - target | **-** | 6424  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per-share fair value | $**-** | $830.86  | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volatility | **-%** | 22.00% | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk-free interest rate | -<br>**%** | 4.07% | -% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Common Assumptions** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service period (years) | **2.9**  | 2.9  | 2.9  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three-year measurement period ends December 31, | **2027** | 2026 | 2025 |

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The following table summarizes total stock option, stock award and PSU activity during 2025:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Stock Options** | **Stock Options** | **Stock Options** | **Stock Options** | **Stock Awards** | **Stock Awards** | **Performance Units (PSUs)** | **Performance Units (PSUs)** |
|  |  |  |  |  |  | **Weighted** |  |  |
|  |  | **Weighted Average** | **Weighted Average** | **Aggregate** |  | **Average**  |  | **Weighted** |
|  |  |  | **Remaining** | **Intrinsic** |  | **Grant-Date** | **Number of** | **Average**  |
|  | **Number of** | **Exercise** | **Contractual** | **Value** | **Number of** | **Per-Share** | **Target** | **Grant-Date** |
|  | **Options** | **Price** | **Life (Years)** | **(thousands)** | **Awards** | **Fair Value** | **Units** | **Price** |
| Outstanding at December 31, 2024 | 1182181 | $508.85 |  |  | - | $- | 51720 | $606.99 |
| Granted | 441501 | 443.79 |  |  | 3641 | 514.42 | 23805 | 592.70 |
| Exercised/Vested | (148130) | 461.37 |  |  | (3641) | 514.42 | (20557) | 491.37 |
| Canceled/ Forfeited | (119041) | 496.32 |  |  | - | - | (6668) | 611.20 |
| Outstanding at December 31, 2025 | 1356511 | $493.96 | 3.3 | - | - | $- | 48300 | $648.58 |
| Vested and expected to vest |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;at December 31, 2025 | 1356511 | $493.96 | 3.3 | - | - | $- | 22674<br> \* | $621.91 |
| Exercisable at December 31, 2025 | 634160 | 494.62 | 2.2 | - | n.a. | n.a. | n.a. | n.a. |
| \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. | \* Amount includes 10,743 share units which vested and were converted to shares of stock and distributed in the first quarter of 2026. |

---

We estimate the fair value of stock options using the Black-Scholes valuation model. We determine expected term, volatility, and dividend yield and forfeiture rate based on our historical experience. We believe that historical experience is the best indicator of these factors.

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Comparative data for stock options, stock awards and PSUs include (in thousands, except per-share amounts):

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| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 | 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total compensation expense of stock-based compensation |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;plans charged against income | $**38680**  | $52110  | $40793  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income tax benefit recognized in income for stock |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;based compensation expense charged against income | **9705**  | 12730  | 9709  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intrinsic value of stock options exercised | **18197**  | 42914  | 54681  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total intrinsic value of stock awards vested during the period | **1873**  | 1282  | 1444  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per-share weighted average grant-date fair value of |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock awards granted | **514.42**  | 564.34  | 545.69  |

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The assumptions we used to value stock option grants are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | 2024 | 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock price on date of issuance | $**443.79** | $597.70 | $509.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grant date fair value per option | $**85.83** | $114.55 | $111.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of options granted | **441501** | 318015 | 315555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected term (years) | **3.5** | 3.5 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk free rate of return | **3.51%** | 4.02% | 4.99% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volatility | **20.2%** | 17.81% | 19.24% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend yield | **0.5%** | 0.3% | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeiture rate | **-** | - | - |

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Other data for stock options, stock awards and PSUs for 2025 include (dollar amounts in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Stock** | **Stock** |  |
|  | **Options** | **Awards** | **PSUs** |
| Total unrecognized compensation at the end of the year | $63432  | $- | $6024  |
| Weighted average period over which unrecognized compensation to be recognized (years) | 2.2  | - | 1.6  |
| Actual income tax benefit realized | $4040  | $416  | $891  |
| Aggregate intrinsic value vested and expected to vest | $- | $- | $9710  |

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*EMPLOYEE STOCK PURCHASE PLAN ("ESPP")*

The ESPP allows eligible participants to purchase shares of stock through payroll deductions at current market value. We pay administrative and broker fees associated with the ESPP. Shares of stock purchased for the ESPP are purchased on the open market and credited directly to participants' accounts. In accordance with the FASB's guidance, the ESPP is non-compensatory.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Segments and Nature of the Business** 

In November 2023, the FASB issued Accounting Standards Update "ASU 2023-07 – Improvements to Reportable Segment Disclosures". The guidance provides enhanced disclosures about significant segment expenses. The purpose of the amendment is to provide investors with a better understanding of an entity's overall performance and assess potential future cash flows. The ASU does not change how an entity identifies its operating segments. We adopted ASU 2023-07 for the year ending December 31, 2025, and applied a retrospective approach to all periods presented in our consolidated financial statements.

Our segments include the VITAS segment and the Roto-Rooter segment, which comprise the structure used by our President and Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker ("CODM") to make key operating decisions and assess performance. Relative contributions of each segment to service revenues and sales were 64% and 36% in 2025, 63% and 37% in 2024, and 58% and 42% in 2023. The vast majority of our service revenues and sales from continuing operations are generated from business within the United States. Service revenues and sales by business segment are shown in Note 2.

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The reportable segments have been defined along service lines, which is consistent with the way the businesses are managed. In determining reportable segments, the RRSC and RRC operating units of the Roto-Rooter segment have been aggregated on the basis of possessing similar operating and economic characteristics. The characteristics of these operating segments and the basis for aggregation are reviewed annually.

We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as "Corporate". Corporate administrative expense includes the stewardship, accounting and reporting, legal, tax and other costs of operating a publicly held corporation. Corporate investing and financing income and expenses include the costs and income associated with corporate debt and investment arrangements.

Our CODM evaluates the segments' operating performance based mainly on income/(loss) from operations. For each segment, the CODM compares segment income/(loss) from operations in the annual budgeting and monthly forecasting process to actual results. The CODM considers variances on a monthly basis for evaluating performance of each segment and making decisions about allocating resources to each segment.

Segment data are set forth below (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Reportable** |  | **Chemed**  |
| **2025 (in thousands)** | **VITAS** | **Roto-Rooter** | **Segments** | **Corporate** | **Consolidated** |
| **Service revenues and sales** | $**1630101**  | $**899877**  | $**2529978**  | $**-** | $**2529978**  |
| **Cost of services provided and goods sold** |  |  |  |  |  |
| **(excluding depreciation)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Wages** | **946833**  | **306619**  | **1253452**  | **-** | **1253452**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Patient care expense** | **166680**  | **-** | **166680**  | **-** | **166680**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other expenses** | **144191**  | **142471**  | **286662**  | **-** | **286662**  |
| **Total cost of services provided and goods sold** | **1257704**  | **449090**  | **1706794**  | **-** | **1706794**  |
| **Selling, general and administrative expense** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Wages** | **66845**  | **85858**  | **152703**  | **17355**  | **170058**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Advertising** | **-** | **77138**  | **77138**  | **-** | **77138**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Stock compensation** | **-** | **-** | **-** | **38296**  | **38296**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other expenses** | **33830**  | **84051**  | **117881**  | **13815**  | **131696**  |
| **Total selling, general and administrative expense** | **100675**  | **247047**  | **347722**  | **69466**  | **417188**  |
| **Depreciation** | **21308**  | **33200**  | **54508**  | **49**  | **54557**  |
| **Amortization** | **104**  | **10180**  | **10284**  | **-** | **10284**  |
| **Other operating expense/(income)** | **3375**  | **(466)** | **2909**  | **-** | **2909**  |
| **Total costs and expenses** | **1383166**  | **739051**  | **2122217**  | **69515**  | **2191732**  |
| **Income/(loss) from operations** | **246935**  | **160826**  | **407761**  | **(69515)** | **338246**  |
| **Interest expense** | **(185)** | **(611)** | **(796)** | **(954)** | **(1750)** |
| **Intercompany interest income/(expense)** | **22455**  | **16245**  | **38700**  | **(38700)** | **-** |
| **Other income - net** | **327**  | **70**  | **397**  | **18885**  | **19282**  |
| **Income/(expense) before income taxes** | **269532**  | **176530**  | **446062**  | **(90284)** | **355778**  |
| **Income taxes** | **(65523)** | **(41037)** | **(106560)** | **16020**  | **(90540)** |
| **Net income/(loss)** | $**204009**  | $**135493**  | $**339502**  | $**(74264)** | $**265238**  |
| **Identifiable assets** | $**784927**  | $**528587**  | $**1313514**  | $**224675**  | $**1538189**  |
| **Additions to long-lived assets** | $**32190**  | $**31602**  | $**63792**  | $**35**  | $**63827**  |

---

‎

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | Reportable |  | Chemed |
| 2024 (in thousands) | VITAS | Roto-Rooter | Segments | Corporate | Consolidated |
| Service revenues and sales | $1530978  | $900309  | $2431287  | $- | $2431287  |
| Cost of services provided and goods sold |  |  |  |  |  |
| (excluding depreciation) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wages | 860025  | 303458  | 1163483  | - | 1163483  |
| &nbsp;&nbsp;&nbsp;&nbsp;Patient care expense | 148165  | - | 148165  | - | 148165  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 138613  | 126678  | 265291  | - | 265291  |
| Total cost of services provided and goods sold | 1146803  | 430136  | 1576939  | - | 1576939  |
| Selling, general and administrative expense |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wages | 69139  | 81519  | 150658  | 17132  | 167790  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising | - | 73147  | 73147  | - | 73147  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation | - | - | - | 52185  | 52185  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 30425  | 78186  | 108611  | 22627  | 131238  |
| Total selling, general and administrative expense | 99564  | 232852  | 332416  | 91944  | 424360  |
| Depreciation | 20362  | 32452  | 52814  | 50  | 52864  |
| Amortization | 105  | 10080  | 10185  | - | 10185  |
| Other operating expense | 178  | 268  | 446  | - | 446  |
| Total costs and expenses | 1267012  | 705788  | 1972800  | 91994  | 2064794  |
| Income/(loss) from operations | 263966  | 194521  | 458487  | (91994) | 366493  |
| Interest expense | (171) | (431) | (602) | (1178) | (1780) |
| Intercompany interest income/(expense) | 20211  | 14397  | 34608  | (34608) | - |
| Other income - net | 227  | 69  | 296  | 34456  | 34752  |
| Income/(expense) before income taxes | 284233  | 208556  | 492789  | (93324) | 399465  |
| Income taxes | (67414) | (48510) | (115924) | 18458  | (97466) |
| Net income/(loss) | $216819  | $160046  | $376865  | $(74866) | $301999  |
| Identifiable assets | $839568  | $529076  | $1368644  | $299931  | $1668575  |
| Additions to long-lived assets | $108629  | $38274  | $146903  | $275  | $147178  |

---

‎

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | Reportable |  | Chemed |
| 2023 (in thousands) | VITAS | Roto-Rooter | Segments | Corporate | Consolidated |
| Service revenues and sales | $1315065  | $949352  | $2264417  | $- | $2264417  |
| Cost of services provided and goods sold |  |  |  |  |  |
| (excluding depreciation) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wages | 766264  | 307160  | 1073424  | - | 1073424  |
| &nbsp;&nbsp;&nbsp;&nbsp;Patient care expense | 126259  | - | 126259  | - | 126259  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 125100  | 140819  | 265919  | - | 265919  |
| Total cost of services provided and goods sold | 1017623  | 447979  | 1465602  | - | 1465602  |
| Selling, general and administrative expense |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wages | 62503  | 83070  | 145573  | 17993  | 163566  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising | - | 67709  | 67709  | - | 67709  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation | - | - | - | 41771  | 41771  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 30793  | 80808  | 111601  | 10473  | 122074  |
| Total selling, general and administrative expense | 93296  | 231587  | 324883  | 70237  | 395120  |
| Depreciation | 19959  | 30790  | 50749  | 53  | 50802  |
| Amortization | 104  | 9959  | 10063  | - | 10063  |
| Other operating (income)/expense | (12) | 2273  | 2261  | - | 2261  |
| Total costs and expenses | 1130970  | 722588  | 1853558  | 70290  | 1923848  |
| Income/(loss) from operations | 184095  | 226764  | 410859  | (70290) | 340569  |
| Interest expense | (180) | (442) | (622) | (2486) | (3108) |
| Intercompany interest income/(expense) | 19400  | 11918  | 31318  | (31318) | - |
| Other income - net | 1309  | 126  | 1435  | 11471  | 12906  |
| Income/(expense) before income taxes | 204624  | 238366  | 442990  | (92623) | 350367  |
| Income taxes | (46115) | (50125) | (96240) | 18382  | (77858) |
| Net income/(loss) | $158509  | $188241  | $346750  | $(74241) | $272509  |
| Identifiable assets | $778950  | $523450  | $1302400  | $365695  | $1668095  |
| Additions to long-lived assets | $17450  | $43514  | $60964  | $274  | $61238  |

---

**6.&nbsp;&nbsp;&nbsp;&nbsp;Intangible Assets** 

Amortization of definite-lived intangible assets for the years ended December 31, 2025, 2024 and 2023, was $10.3 million, $10.2 million and $10.1 million, respectively. The following is a schedule by year of projected amortization expense for definite-lived intangible assets (in thousands):

---

| | |
|:---|:---|
| 2026 | $9936  |
| 2027 | 616  |
| 2028 | 413  |
| 2029 | 238  |
| 2030 | 160  |
| Thereafter | 1397  |

---

‎

------

The balance in identifiable intangible assets comprises the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Gross**  | **Accumulated** | **Net Book**  |
|  | **Asset** | **Amortization** | **Value** |
| **December 31, 2025** |  |  |  |
| **Referral networks** | $**1178**  | $**(601)** | $**577**  |
| **Covenants not to compete** | **2634**  | **(2484)** | **150**  |
| **Customer lists** | **4745**  | **(2649)** | **2096**  |
| **Reacquired franchise rights** | **73635**  | **(63698)** | **9937**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Subtotal - definite-lived intangibles** | **82192**  | **(69432)** | **12760**  |
| **VITAS trade name** | **51300**  | **-** | **51300**  |
| **Roto-Rooter trade name** | **150**  | **-** | **150**  |
| **Operating licenses** | **18554**  | **-** | **18554**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**152196**  | $**(69432)** | $**82764**  |
| December 31, 2024 |  |  |  |
| Referral networks | $1228  | $(507) | $721  |
| Covenants not to compete | 2579  | (2422) | 157  |
| Customer lists | 4744  | (2433) | 2311  |
| Reacquired franchise rights | 73605  | (53785) | 19820  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal - definite-lived intangibles | 82156  | (59147) | 23009  |
| VITAS trade name | 51300  | - | 51300  |
| Roto-Rooter trade name | 150  | - | 150  |
| Operating licenses | 17747  | - | 17747  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $151353  | $(59147) | $92206  |

---

**7.&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions**

On January 3, 2025, Roto-Rooter completed the acquisition of one franchise in Michigan for $225,000 in cash.

On March 11, 2024, Roto-Rooter completed the acquisition of one franchise in New Jersey for $5.8 million in cash. On March 27, 2024, Roto-Rooter completed the acquisition of one franchise in Texas for $1.5 million in cash. On August 20, 2024, Roto-Rooter completed the acquisition of one franchise in Kentucky for $5.1 million in cash.

On April 17, 2024, VITAS completed the purchase of all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc d/b/a/ Covenant Care ("Covenant") for an aggregated purchase price of $85.0 million in cash.

The purchase price allocation of the acquired VITAS business is as follows (in thousands):

---

| | |
|:---|:---|
| Goodwill | $70803 |
| Operating licenses | 10960 |
| Property, plant, and equipment | 3237 |
|  | $85000 |

---

The pro forma revenue and earnings for the Company for the years ended December 31, 2025, 2024 and 2023 as if the Covenant acquisition made in 2024 was completed on January 1, 2023 are as follows (in thousands, except per share data):

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | 2024 | 2023 |
| Service revenues and sales | $**2529978**  | $2448419  | $2320177  |
| Net income | $**265238**  | $306224  | $279615  |
| Earnings per share | $**18.42**  | $20.38  | $18.58  |
| Diluted earnings per share | $**18.34**  | $20.16  | $18.40  |

---

Revenue and net income from other acquisitions made in 2025, 2024 and 2023 are not material.

------

In 2023, Roto-Rooter completed the acquisition of one franchise in South Carolina for $305,000 in cash and one franchise in Georgia for $3.689 million in cash.

Goodwill is assessed for impairment on a yearly basis as of October 1. The primary factor that contributed to the purchase price resulting in the recognition of goodwill is operational efficiencies expected as a result of consolidating stand- alone franchises and Roto-Rooter's network of nationwide branches. All goodwill recognized is deductible for tax purposes.

**8.&nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations** 

At December 31, 2025 and 2024, the accrual for our estimated liability for potential environmental cleanup and related costs arising from the 1991 sale of DuBois amounted to $1.7 million. Of the 2025 balance, $826,000 is included in other current liabilities and $882,000 is included in other liabilities (long-term).

We are contingently liable for additional DuBois-related environmental cleanup and related costs up to a maximum of $14.9 million. On the basis of a continuing evaluation of the potential liability, we believe it is not probable this additional liability will be paid. Accordingly, no provision for this contingent liability has been recorded. The potential liability is not insured, and the recorded liability does not assume the recovery of insurance proceeds. Also, the environmental liability has not been discounted because it is not possible to reliably project the timing of payments. We believe that any adjustments to our recorded liability will not materially adversely affect our financial position, results of operations or cash flows.

**9.&nbsp;&nbsp;&nbsp;&nbsp;Cash Overdrafts, Cash Equivalents, and Supplemental Cash Flow Disclosure** 

Included in the accompanying Consolidated Balance Sheets are $2.1 million, $1.1 million, and $690,000 of capitalized property and equipment which were not paid for as of December 31, 2025, 2024, and 2023, respectively. These amounts have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flows. There are no material non-cash amounts included in interest expense for any period presented.

There are $11.0 million of cash overdrafts included in accounts payable as of December 31, 2025. There were no cash overdrafts included in accounts payable as of December 31, 2024.

From time to time throughout the year, we invest excess cash in money market funds directly with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. In 2023, Chemed began investing excess cash in a money market fund holding US Treasuries. Deposits and withdrawals are made daily, based on the Company's excess cash balance. There are no penalties associated with withdrawals. The accounts bear interest at a normal market rate.

**10.&nbsp;&nbsp;&nbsp;&nbsp;Other Income -- Net** 

Other income -- net comprises the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,**  | **For the Years Ended December 31,**  | **For the Years Ended December 31,**  |
|  | **2025** | 2024 | 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market value gains related to deferred |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compensation trusts | $**10550**  | $20139  | $6404  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **8745**  | 14610  | 6270  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **(13)** | 3  | 232  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income - net | $**19282**  | $34752  | $12906  |

---

The market value gain relates to realized and unrealized activity on the assets in the deferred compensation trust. There is an offsetting amount in selling, general and administrative expense to reflect the corresponding increase in the liability.

‎

------

**11.&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes** 

The provision for income taxes comprises the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | 2024 | 2023 |
| Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. federal | $**83410**  | $85802  | $75333  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. state and local | **12667**  | 15301  | 9983  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | **406**  | 501  | 569  |
| Deferred |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. federal, state and local | **(5940)** | (4140) | (8029) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | **(3)** | 2  | 2  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**90540**  | $97466  | $77858  |

---

A summary of the temporary differences that give rise to deferred tax assets/ (liabilities) follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | 2024 |
| Accrued liabilities | $**45738**  | $42411  |
| Lease liabilities | **34613**  | 33982  |
| Stock compensation expense | **13017**  | 11229  |
| Implicit price concessions | **5234**  | 8115  |
| State net operating loss carryforwards | **2384**  | 1839  |
| Other | **836**  | 1214  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets | **101822**  | 98790  |
| Amortization of intangible assets | **(45259)** | (42754) |
| Accelerated tax depreciation | **(33490)** | (29814) |
| Right of use lease assets | **(31535)** | (30679) |
| Currents assets | **(4689)** | (4244) |
| State income taxes | **(2134)** | (2042) |
| Market valuation of investments | **(3902)** | (3661) |
| Deposit with OAS | **-** | (11413) |
| Other | **(126)** | (128) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liabilities | **(121135)** | (124735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred income tax liabilities | $**(19313)** | $(25945) |

---

At December 31, 2025 and 2024, state net operating loss carryforwards were $52.0 million and $39.4 million, respectively. These net operating losses will expire, in varying amounts, between 2026 and 2045. Based on our history of operating earnings, we have determined that our operating income will, more likely than not, be sufficient to ensure realization of our deferred income tax assets.

A reconciliation of the beginning and ending of year amount of our unrecognized tax benefit is as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | 2024 | 2023 |
| Balance at January 1, | $**1709**  | $1221  | $1313  |
| Decrease due to expiration of statute of limitations | **(284)** | (207) | (355) |
| Unrecognized tax benefits due to positions taken in current year | **(138)** | 695  | 263  |
| Balance at December 31, | $**1287**  | $1709  | $1221  |

---

We file tax returns in the U.S. federal jurisdiction and various states. The years ended December 31, 2022 and forward remain open for review for federal income tax purposes. The earliest open year relating to any of our major state jurisdictions is the fiscal year ended December 31, 2021.

We classify interest related to our accrual for uncertain tax positions in separate interest accounts. As of December 31, 2025, and 2024, we have approximately $180,000 and $275,000, respectively, accrued in interest payable related to uncertain tax positions. These accruals are included in other current liabilities in the accompanying consolidated balance sheet. Net interest expense related to uncertain tax positions included in interest expense in the accompanying consolidated statement of income is not material.

------

The difference between the actual income tax provision for continuing operations and the income tax provision calculated at the statutory U.S. federal tax rate is explained as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2025** | 2024 | 2024 | 2023 | 2023 |
| U.S. federal tax at statutory rate | $**74713**  | **21.0%** | $83888  | 21.0% | $73577  | 21.0% |
| State and local income taxes, net of federal income tax effect (1) | **8752**  | **2.5** | 11811  | 3.0  | 2306  | 0.7  |
| Nontaxable and nondeductible expenses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Limitation on executive compensation | **4427**  | **1.2** | 6012  | 1.5  | 5268  | 1.5  |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess stock compensation tax provision/(benefits) | **696**  | **0.2** | (4442) | (1.1) | (4330) | (1.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **1472**  | **0.4** | 1426  | 0.3  | 1332  | 0.3  |
| Other adjustments--net | **480**  | **0.1** | (1229) | (0.3) | (295) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Effective income tax rate | $**90540**  | **25.4%** | $97466  | 24.4% | $77858  | 22.2% |

---

(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Florida and Illinois for 2025 and 2024, and 2023.

During the third quarter of 2023, the Company recognized a tax benefit from realignment of its state and local corporate tax structure based on the location of operating resources and profitability by business segment. This benefit includes a reduction in current state and local tax expense and a one-time benefit of $4.2 million in reduction of deferred tax liabilities reflecting the lower tax rates.

Summarized below are the total amounts of income taxes paid (net of refunds received) during the years ended December 31 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | 2024 | 2023 |
| Federal | $**88500**  | $85000  | $63550  |
| State | **13795**  | 13110  | 9856  |
| Foreign | **409**  | 618  | 470  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total (1) | $**102704**  | $98728  | $73876  |

---

(1) In 2025, 2024, and 2023, there were no individual jurisdictions with cash taxes paid (net of refunds received) that equaled or exceeded 5% of total income taxes paid.

Provision has not been made for additional taxes on $35.1 million of undistributed earnings of our domestic subsidiaries. Should we elect to sell our interest in these businesses rather than to affect a tax-free liquidation, additional taxes amounting to approximately $8.0 million would be incurred based on current income tax rates.

**12. Other Assets**

Other assets comprise of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | 2024 |
| Deposit with OAS (Note 18) | $**-** | $46968  |
| Other  | **8650**  | 8789  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other assets | $**8650**  | $55757  |

---

 **‎** 

------

**13.&nbsp;&nbsp;&nbsp;&nbsp;Properties and Equipment** 

A summary of properties and equipment follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | 2024 |
| Land | $**11656**  | $12348  |
| Buildings and building improvements | **139219**  | 140656  |
| Transportation equipment | **97960**  | 93025  |
| Machinery and equipment | **166142**  | 167767  |
| Computer software | **79948**  | 76251  |
| Furniture and fixtures | **86281**  | 83184  |
| Projects under development | **12560**  | 9607  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total properties and equipment | **593766**  | 582838  |
| Less accumulated depreciation | **(388104)** | (382001) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net properties and equipment | $**205662**  | $200837  |

---

The net book value of computer software at December 31, 2025 and 2024, was $9.9 million and $8.1 million, respectively. Depreciation expense for computer software was $4.3 million, $4.3 million, and $4.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

**14.&nbsp;&nbsp;&nbsp;&nbsp;Leases**

Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for IPUs and/or contract beds within hospitals. Roto-Rooter has leased office space.

The components of balance sheet information related to leases were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | 2024 |
| **<u>Assets</u>** |  |  |
| Operating lease assets | $**131151**  | $127323  |
| **<u>Liabilities</u>** |  |  |
| Current operating leases | **40892**  | 42306  |
| Noncurrent operating leases | **102867**  | 98538  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating lease liabilities | $**143759**  | $140844  |

---

The components of lease expense were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2025** | 2024 | 2023 |
| **<u>Lease Expense (a)</u>** |  |  |  |
| Operating lease expense | $**68226**  | $64228  | $59769  |
| Sublease income | **(123)** | (311) | (93) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net lease expense | $**68103**  | $63917  | $59676  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Includes short-term leases and variable lease costs, which are immaterial. Included in both cost of services provided and goods sold and selling, general and administrative expenses.

‎

------

The components of cash flow information related to leases were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | 2024 |
| **<u>Cash paid for amounts included in the measurement of lease liabilities</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows from leases | $**55598**  | $51762  |
| **<u>Leased assets obtained in exchange for new operating lease liabilities</u>** | $**52669**  | $49883  |

---

---

| | | |
|:---|:---|:---|
| **<u>Weighted Average Remaining Lease Term</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases | **4.82** | **yrs** |
| **<u>Weighted Average Discount Rate</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases | **4.14** | **%** |

---

---

| | |
|:---|:---|
| **Maturity of Operating Lease Liabilities (in thousands)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2026** | $**48403**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2027 | 33662  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2028 | 26848  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2029 | 20655  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2030 | 12535  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thereafter | 17832  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lease payments | $159935  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: interest | (16176) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liability recognized on the balance sheet | $143759  |

---

For leases commencing prior to 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $8.4 million related to extended lease terms that are reasonably certain of being exercised and exclude $1.1 million of lease payments for leases signed but not yet commenced.

**15.&nbsp;&nbsp;&nbsp;&nbsp;Retirement Plans** 

Retirement obligations under various plans cover substantially all full-time employees who meet age and/or service eligibility requirements. All plans providing retirement benefits to our employees are defined contribution plans. Expenses for our retirement and profit-sharing plans, excess benefit plans and other similar plans are as follows (in thousands):

---

| | | |
|:---|:---|:---|
| **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| **2025** | 2024 | 2023 |
| $**32378**  | $39134  | $26475  |

---

These expenses include the impact of market gains and losses on assets held in deferred compensation plans. Trust assets invested in shares of our stock are included in treasury stock, and the corresponding liability is included in a separate component of stockholders' equity. At December 31, 2025, these trusts held 54,648 shares at historical average cost of $2.3 million (2024 – 55,072 shares or $2.2 million).

We have excess benefit plans for key employees whose participation in the qualified plans is limited by U.S. Employee Retirement Income Security Act requirements. Benefits are determined based on theoretical participation in the qualified plans. Benefits are only invested in mutual funds, and participants are not permitted to diversify accumulated benefits in shares of our capital stock.

‎

------

**16.&nbsp;&nbsp;&nbsp;&nbsp;Earnings Per Share** 

The computation of earnings per share follows (in thousands, except per share data):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **For the Years Ended December 31,** | **For the Years Ended December 31,** | **Net Income** | **Shares** | **Earnings per Share** |
| **2025** |  |  |  |  |
|  | **Earnings** | $**265238**  | **14398**  | $**18.42**  |
|  | **Dilutive stock options** | **-** | **35**  |  |
|  | **Nonvested stock awards** | **-** | **27**  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Diluted earnings** | $**265238**  | **14460**  | $**18.34**  |
| 2024 |  |  |  |  |
|  | Earnings | $301999  | 15024  | $20.10  |
|  | Dilutive stock options | - | 114  |  |
|  | Nonvested stock awards | - | 48  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings | $301999  | 15186  | $19.89  |
| 2023 |  |  |  |  |
|  | Earnings | $272509  | 15050  | $18.11  |
|  | Dilutive stock options | - | 103  |  |
|  | Nonvested stock awards | - | 47  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings | $272509  | 15200  | $17.93  |

---

During 2025, 1.0 million stock options were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price during most of the year. During 2024, 619,000 stock options were excluded. During 2023, 601,000 stock options were excluded.

**17. Financial Instruments** 

FASB's authoritative guidance on fair value measurements defines a hierarchy which prioritizes the inputs in fair value measurements. Level 1 measurements are measurements using quoted prices in active markets for identical assets or liabilities. Level 2 measurements use significant other observable inputs. Level 3 measurements are measurements using significant unobservable inputs which require a company to develop its own assumptions. In recording the fair value of assets and liabilities, companies must use the most reliable measurement available.

The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2025 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Fair Value Measure** | **Fair Value Measure** | **Fair Value Measure** |
|  | **Carrying Value** | **Quoted Prices in Active Markets for Identical Assets (Level 1)** | **Significant Other Observable Inputs (Level 2)** | **Significant Unobservable Inputs (Level 3)** |
| **Investments of deferred compensation plans held in trust** | $**140347**  | $**140347**  | $**-** | $**-** |
| **Cash equivalents** | **94273**  | **94273**  | **-** | **-** |

---

‎

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The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | Fair Value Measure | Fair Value Measure | Fair Value Measure |
|  | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) |
| Investments of deferred compensation plans held in trust | $130960 | $130960 | $- | $- |
| Cash equivalents | 188379 | 188379 | - | - |

---

For cash and cash equivalents, accounts receivable and accounts payable, the carrying amount is a reasonable estimate of fair value because of the liquidity and short-term nature of these instruments. As further described in Note 3, our outstanding long-term debt and current portion of long-term debt have floating interest rates that are reset at short-term intervals, generally 30 or 60 days. The interest rate we pay also includes an additional amount based on our current leverage ratio. As such, we believe our borrowings reflect significant nonperformance risks, mainly credit risk. Based on these factors, we believe the fair value of our long-term debt and current portion of long-term debt approximate the carrying value.

**18.&nbsp;&nbsp;&nbsp;&nbsp;Legal and Regulatory Matters**

The VITAS segment of the Company's business operates in a heavily-regulated industry. As a result, the Company is subjected to inquiries and investigations by various government agencies, which can result in penalties including repayment obligations, funding withholding, or debarment, as well as to lawsuits, including *qui tam* actions. The following describes the material lawsuits and investigations of which the Company is currently aware.

***Regulatory Matters and Litigation***

VITAS was one of a group of hospice providers selected by the Office of the Inspector General's ("OIG") Office of Audit Services ("OAS") for inclusion in an audit of the provision of elevated level-of-care hospice services, which reviewed 100 out of a total population of 50,850 inpatient and continuous care claims.

On August 29, 2022, VITAS received a demand letter from its Medicare Administrative Contractor ("MAC") seeking repayment of $50.3 million. VITAS appealed the overpayment decision and deposited $50.3 million under the "Immediate Recoupment" process. The amount deposited was recorded as an "other long-term asset" in the consolidated balance sheets, as detailed in Note 12.

On February 3, 2025, an Administrative Law Judge ("ALJ") ruled that VITAS' care met Medicare's hospice standards for the applicable higher level of care as originally billed for all but one of the claims appealed, and therefore VITAS was entitled to receive payment for all such claims. With respect to the one claim that the judge did not fully side with VITAS, the judge found that four of the five days billed met the applicable standard and only one day did not.

In a letter dated March 18, 2025, VITAS' MAC provided notice that due to the ALJ's ruling the total overpayment amount was reduced to a de minimis amount, and on April 1, 2025 refunded VITAS all previously unreturned deposited amounts in excess of that dollar figure.

As a result of the cybersecurity incident and data breach on October 24, 2025 referenced in Item 1C above, multiple class action lawsuits have been filed against VITAS alleging various causes of action and seeking damages resulting from the breach. The Company intends to defend against the allegations in these lawsuits. The Company is not able to reasonably estimate the probability of loss or range of loss for any of these lawsuits at this time.

Regardless of the outcome of the preceding matters, dealing with the various regulatory agencies and opposing parties can adversely affect us through defense costs, potential payments, withholding of governmental funding, diversion of management time, and related publicity.

‎

------

**19.&nbsp;&nbsp;&nbsp;&nbsp;Capital Stock Transactions**

We repurchased the following capital stock:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | 2024 | 2023 |
| Total cost of repurchased shares (in thousands): | $**428035**  | $358737  | $73813  |
| Shares repurchased | **932500**  | 638235  | 132969  |
| Weighted average price per share | $**459.02**  | $562.08  | $555.12  |

---

In August 2025, the Board of Directors authorized $300.0 million for additional stock repurchase under the February 2011 repurchase program. In November 2024 and 2023, the Board of Directors authorized $300.0 million for additional stock repurchase under the February 2011 repurchase program. We currently have $127.3 million of authorization remaining under this share purchase plan.

**20.&nbsp;&nbsp;&nbsp;&nbsp;Other Operating Expenses**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2025** | 2024 | 2023 |
| Legal settlements | $**3071**  | $- | $2050  |
| (Gain)/loss on disposal of property and equipment | **(162)** | 446  | 211  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other operating expenses | $**2909**  | $446  | $2261  |

---

**21. Other Current Liabilities**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | 2024 |
| Medicare cap | $**30914**  | $13579  |
| All other  | **27978**  | 29295  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other current liabilities  | $**58892**  | $42874  |

---

There are no individual amounts exceeding 5% of the total current liabilities in the "all other" line item for either period presented.

**22. Recent Accounting Standards**

In November 2024, the FASB issued Accounting Standards Update "ASU 2024-03 – Disaggregation of Income Statement Expenses". The guidance provides enhanced disclosures about commonly presented expense categories such as cost of sales, selling, general and administrative expenses and research and development. The objective is to provide investors with a better understanding of the entity's performance, assess potential future cash flows and comparability with other entities. The guidance is effective for fiscal periods beginning December 15, 2026, and interim periods within fiscal years beginning December 15, 2027. The Company is finalizing the impact of the ASU, and expects to incorporate within our footnote disclosures in our 2026 Annual Report on Form 10-K.

In September 2025, the FASB issued Accounting Standards Update "ASU 2025-06 – Intangibles – Goodwill and Other – Internal – Use Software". The guidance seeks to modernize the accounting guidance for the costs to develop software for internal use. The guidance amends the existing standard to better align with current software development methods. Entities will start capitalizing eligible costs when management has authorized and committed to funding software projects and when it is probable that the projects will be completed and used as intended. The guidance is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. The Company is currently analyzing the impact of the ASU on the consolidated financial statements.

‎

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| | | | | |
|:---|:---|:---|:---|:---|
| **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** |
| **UNAUDITED CONSOLIDATING STATEMENTS OF INCOME** | **UNAUDITED CONSOLIDATING STATEMENTS OF INCOME** | **UNAUDITED CONSOLIDATING STATEMENTS OF INCOME** | **UNAUDITED CONSOLIDATING STATEMENTS OF INCOME** | **UNAUDITED CONSOLIDATING STATEMENTS OF INCOME** |
| **FOR THE YEAR ENDED DECEMBER 31, 2025** | **FOR THE YEAR ENDED DECEMBER 31, 2025** | **FOR THE YEAR ENDED DECEMBER 31, 2025** | **FOR THE YEAR ENDED DECEMBER 31, 2025** | **FOR THE YEAR ENDED DECEMBER 31, 2025** |
| **(in thousands)(unaudited)** | **(in thousands)(unaudited)** | **(in thousands)(unaudited)** | **(in thousands)(unaudited)** | **(in thousands)(unaudited)** |
|  |  | **Roto-** |  | **Chemed** |
|  | **VITAS** | **Rooter** | **Corporate** | **Consolidated** |
| **2025** |  |  |  |  |
| **Service revenues and sales** | $**1630101**  | $**899877**  | $**-** | $**2529978**  |
| **Cost of services provided and goods sold** | **1257704**  | **449090**  | **-** | **1706794**  |
| **Selling, general and administrative expenses** | **100675**  | **247047**  | **69466**  | **417188**  |
| **Depreciation** | **21308**  | **33200**  | **49**  | **54557**  |
| **Amortization** | **104**  | **10180**  | **-** | **10284**  |
| **Other operating expense/(income)** | **3375**  | **(466)** | **-** | **2909**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total costs and expenses** | **1383166**  | **739051**  | **69515**  | **2191732**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income/(loss) from operations** | **246935**  | **160826**  | **(69515)** | **338246**  |
| **Interest expense** | **(185)** | **(611)** | **(954)** | **(1750)** |
| **Intercompany interest income/(expense)** | **22455**  | **16245**  | **(38700)** | **-** |
| **Other income—net** | **327**  | **70**  | **18885**  | **19282**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income/(loss) before income taxes (a)** | **269532**  | **176530**  | **(90284)** | **355778**  |
| **Income taxes** | **(65523)** | **(41037)** | **16020**  | **(90540)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income/(loss) (a)** | $**204009**  | $**135493**  | $**(74264)** | $**265238**  |
| **(a) The following amounts are included in income from continuing operations (in thousands):** | **(a) The following amounts are included in income from continuing operations (in thousands):** | **(a) The following amounts are included in income from continuing operations (in thousands):** | **(a) The following amounts are included in income from continuing operations (in thousands):** | **(a) The following amounts are included in income from continuing operations (in thousands):** |
|  |  | **Roto-** |  | **Chemed** |
|  | **VITAS** | **Rooter** | **Corporate** | **Consolidated** |
| **Pretax benefit/(cost):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Stock option expense** | $**-** | $**-** | $**(32671)** | $**(32671)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Amortization of reacquired franchise agreements** | **-** | **(9408)** | **-** | **(9408)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Long-term incentive compensation** | **-** | **-** | **(5625)** | **(5625)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Legal settlements** | **(3071)** | **-** | **-** | **(3071)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other** | **(500)** | **(530)** | **(2690)** | **(3720)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**(3571)** | $**(9938)** | $**(40986)** | $**(54495)** |
|  |  | **Roto-** |  | **Chemed** |
|  | **VITAS** | **Rooter** | **Corporate** | **Consolidated** |
| **After-tax benefit/(cost):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Stock option expense** | $**-** | $**-** | $**(27659)** | $**(27659)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Amortization of reacquired franchise agreements** | **-** | **(7216)** | **-** | **(7216)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Long-term incentive compensation** | **-** | **-** | **(4972)** | **(4972)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Legal settlements** | **(2325)** | **-** | **-** | **(2325)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other** | **(378)** | **(406)** | **(2690)** | **(3474)** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Excess tax expense on stock compensation** | **-** | **-** | **(696)** | **(696)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**(2703)** | $**(7622)** | $**(36017)** | $**(46342)** |

---

‎

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| | | | | |
|:---|:---|:---|:---|:---|
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES |
| UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME |
| FOR THE YEAR ENDED DECEMBER 31, 2024 | FOR THE YEAR ENDED DECEMBER 31, 2024 | FOR THE YEAR ENDED DECEMBER 31, 2024 | FOR THE YEAR ENDED DECEMBER 31, 2024 | FOR THE YEAR ENDED DECEMBER 31, 2024 |
| (in thousands)(unaudited) | (in thousands)(unaudited) | (in thousands)(unaudited) | (in thousands)(unaudited) | (in thousands)(unaudited) |
|  |  | Roto- |  | Chemed |
|  | VITAS | Rooter | Corporate | Consolidated |
| 2024 |  |  |  |  |
| Service revenues and sales | $1530978  | $900309  | $- | $2431287  |
| Cost of services provided and goods sold | 1146803  | 430136  | - | 1576939  |
| Selling, general and administrative expenses | 99564  | 232852  | 91944  | 424360  |
| Depreciation | 20362  | 32452  | 50  | 52864  |
| Amortization | 105  | 10080  | - | 10185  |
| Other operating expenses | 178  | 268  | - | 446  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 1267012  | 705788  | 91994  | 2064794  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income/(loss) from operations | 263966  | 194521  | (91994) | 366493  |
| Interest expense | (171) | (431) | (1178) | (1780) |
| Intercompany interest income/(expense) | 20211  | 14397  | (34608) | - |
| Other income—net | 227  | 69  | 34456  | 34752  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income/(loss) before income taxes (a) | 284233  | 208556  | (93324) | 399465  |
| Income taxes | (67414) | (48510) | 18458  | (97466) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income/(loss) (a) | $216819  | $160046  | $(74866) | $301999  |
| (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): |
|  |  | Roto- |  | Chemed |
|  | VITAS | Rooter | Corporate | Consolidated |
| Pretax benefit/(cost): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | $- | $- | $(32033) | $(32033) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | - | - | (20152) | (20152) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of reacquired franchise agreements | - | (9408) | - | (9408) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | (1099) | (34) | - | (1133) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(1099) | $(9442) | $(52185) | $(62726) |
|  |  | Roto- |  | Chemed |
|  | VITAS | Rooter | Corporate | Consolidated |
| After-tax benefit/(cost): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | $- | $- | $(27053) | $(27053) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | - | - | (18504) | (18504) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of reacquired franchise agreements | - | (7216) | - | (7216) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | (832) | (26) | - | (858) |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefits on stock compensation | - | - | 4442  | 4442  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(832) | $(7242) | $(41115) | $(49189) |

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| | | | | |
|:---|:---|:---|:---|:---|
| CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES | CHEMED CORPORATION AND SUBSIDIARY COMPANIES |
| UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME | UNAUDITED CONSOLIDATING STATEMENTS OF INCOME |
| FOR THE YEAR ENDED DECEMBER 31, 2023 | FOR THE YEAR ENDED DECEMBER 31, 2023 | FOR THE YEAR ENDED DECEMBER 31, 2023 | FOR THE YEAR ENDED DECEMBER 31, 2023 | FOR THE YEAR ENDED DECEMBER 31, 2023 |
| (in thousands)(unaudited) | (in thousands)(unaudited) | (in thousands)(unaudited) | (in thousands)(unaudited) | (in thousands)(unaudited) |
|  |  | Roto- |  | Chemed |
|  | VITAS | Rooter | Corporate | Consolidated |
| 2023 |  |  |  |  |
| Service revenues and sales | $1315065  | $949352  | $- | $2264417  |
| Cost of services provided and goods sold | 1017623  | 447979  | - | 1465602  |
| Selling, general and administrative expenses | 93296  | 231587  | 70237  | 395120  |
| Depreciation | 19959  | 30790  | 53  | 50802  |
| Amortization | 104  | 9959  | - | 10063  |
| Other operating expenses/(income) | (12) | 2273  | - | 2261  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 1130970  | 722588  | 70290  | 1923848  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income/(loss) from operations | 184095  | 226764  | (70290) | 340569  |
| Interest expense | (180) | (442) | (2486) | (3108) |
| Intercompany interest income/(expense) | 19400  | 11918  | (31318) | - |
| Other income—net | 1309  | 126  | 11471  | 12906  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income/(loss) before income taxes (a) | 204624  | 238366  | (92623) | 350367  |
| Income taxes | (46115) | (50125) | 18382  | (77858) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income/(loss) (a) | $158509  | $188241  | $(74241) | $272509  |
| (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): | (a) The following amounts are included in income from continuing operations (in thousands): |
|  |  | Roto- |  | Chemed |
|  | VITAS | Rooter | Corporate | Consolidated |
| Pretax benefit/(cost): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | $- | $- | $(30082) | $(30082) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | - | - | (11689) | (11689) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of reacquired franchise agreements | - | (9408) | - | (9408) |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal settlements | - | (2056) | - | (2056) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $- | $(11464) | $(41771) | $(53235) |
|  |  | Roto- |  | Chemed |
|  | VITAS | Rooter | Corporate | Consolidated |
| After-tax benefit/(cost): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | $- | $- | $(25405) | $(25405) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | - | - | (10379) | (10379) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of reacquired franchise agreements | - | (7216) | - | (7216) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact of deferred rate tax change | 1772  | 3559  | (1090) | 4241  |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal settlements | - | (1577) | - | (1577) |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefits on stock compensation | - | - | 4330  | 4330  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1772  | $(5234) | $(32544) | $(36006) |

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

### **EXECUTIVE SUMMARY** 
We operate through our two wholly owned subsidiaries: VITAS Healthcare Corporation ("VITAS") and Roto-Rooter Group, Inc. ("Roto-Rooter"). VITAS focuses on hospice care that helps make terminally ill patients' final days as comfortable as possible. Through its team of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter is focused on providing plumbing, drain cleaning, excavation, water restoration and other related services to both residential and commercial customers. Through its network of company-owned branches, Independent Contractors and franchisees, Roto-Rooter offers plumbing and drain cleaning service to over 90% of the U.S. population.

The vast majority of the Company's operations are located in the United States. As both operations are service companies, our employees are the most critical resource of the Company. We have very little or no exposure related to customers, vendors or employees in other regions of the world.

The following is a summary of the key operating results for the years ended December 31, 2025, 2024 and 2023 (in thousands except percentages and per share amounts):

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | 2024 | 2023 |
| Consolidated service revenues and sales | $**2529978**  | $2431287  | $2264417  |
| Consolidated net income | $**265238**  | $301999  | $272509  |
| Diluted EPS | $**18.34**  | $19.89  | $17.93  |
| Adjusted net income | $**311580**  | $351188  | $308515  |
| Adjusted diluted EPS | $**21.55**  | $23.13  | $20.30  |
| Adjusted EBITDA | $**458710**  | $503002  | $451897  |
| Adjusted EBITDA as a % of revenue | **18.1** % | 20.7% | 20.0% |

---

Adjusted net income, adjusted diluted EPS, earnings before interest, taxes and depreciation and amortization ("EBITDA") and Adjusted EBITDA are not measures derived in accordance with GAAP. We use Adjusted EPS as a measure of earnings for certain long-term incentive awards. We use adjusted EBITDA to determine compliance with certain debt covenants. We provide non-GAAP measures to help readers evaluate our operating results and compare our operating performance with that of similar companies that have different capital structures. Our non-GAAP measures should not be considered in isolation or as a substitute for comparable measures presented in accordance with GAAP. Reconciliations of our non-GAAP measures are presented in tables following the Critical Accounting Policies section.

**2025 versus 2024**

The increase in consolidated service revenues and sales from 2025 to 2024 was a result of a 6.5% increase at VITAS with Roto-Rooter being essentially flat. The increase in service revenues at VITAS is comprised primarily of a 5.2% increase in days-of-care, and a geographically weighted average Medicare reimbursement rate increase of approximately 3.4%. Acuity mix shift negatively impacted revenue growth by 110-basis points when compared to prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 100-basis points.

The service revenues at Roto-Rooter were essentially flat for 2025 compared to 2024. The plumbing revenue increase of 0.7% for 2025 versus 2024 is attributable to a 3.6% increase in job count offset by a 2.9% decrease in price and service mix shift. The drain cleaning revenue decrease of 2.4% for 2025 versus 2024 is attributable to a 2.1% increase in price and service mix shift offset by a 4.5% decrease in job count. Excavation and water restoration jobs are generally sold as a result of initial calls from customers regarding drain cleaning issues. As a result, the 4.8% increase in excavation revenue and 6.9% increase in water restoration revenue are mainly a function of plumbing and drain cleaning jobs. Contractor operations decreased 4.6%. Implicit price concessions and credit memos increased 41.8% mainly related to the water restoration business.

On April 17, 2024, VITAS completed the purchase of all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc d/b/a/ Covenant Care ("Covenant") for an aggregated purchase price of $85.0 million in cash.

‎

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The pro forma revenue and earnings for the Company for the years ended December 31, 2025 and 2024 as if the Covenant acquisition made in 2024 was completed on January 1, 2024 are as follows (in thousands, except per share data):

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | 2024 |
| Service revenues and sales | $**2529978**  | $2448419  |
| Net income | $**265238**  | $306224  |
| Earnings per share | $**18.42**  | $20.38  |
| Diluted earnings per share | $**18.34**  | $20.16  |

---

In late September and early October 2024, Hurricanes Helene and Milton impacted the panhandle of Florida and other parts of the southeastern United States. They did not result in any significant property loss or damage to VITAS. However, as with other similar events, we did experience a slowdown in admission activity while health systems prepared for the hurricane and then dealt with the aftermath.

**2024 versus 2023**

The increase in consolidated service revenues and sales from 2024 to 2023 was a result of a 16.4% increase at VITAS and a 5.2% decrease at Roto-Rooter. The increase in service revenues at VITAS is comprised primarily of a 14.1% increase in days-of-care, and a geographically weighted average Medicare reimbursement rate increase of approximately 2.8%. Acuity mix shift negatively impacted revenue growth by 110-basis points when compared to prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes increased revenue growth by 60-basis points. The decrease in service revenues at Roto-Rooter was driven by a decrease in all lines of service.

The pandemic created a significant shortage of licensed healthcare workers industry wide. VITAS was not immune to this shortage. As a result, on July 1, 2022, VITAS implemented a hiring and retention bonus program for its licensed healthcare workers. It is a temporary program intended to help VITAS attract and retain licensed healthcare workers in light of the pandemic induced healthcare worker shortage. An eligible employee must continue in employment for a period of one-year from July 1<sup>st</sup> to receive a bonus. Additionally, employees hired between July 1, 2022 and June 30, 2023 are eligible if they continue employment for a one-year period from their hire date. Total payments for the retention bonus program were $39.2 million paid through 2024.

On April 17, 2024, VITAS completed the purchase of all hospice operations and an assisted living facility from Covenant Health and Community Services, Inc d/b/a/ Covenant Care ("Covenant") for an aggregated purchase price of $85.0 million in cash.

Revenue for the Covenant acquisition for 2024, was approximately $31.0 million to $32.0 million and this translated to net income of approximately $5.0 million to $6.0 million. Adjusted EBITDA for 2024 attributed to Covenant is between $7.0 million and $8.0 million.

The pro forma revenue and earnings for the Company for the years ended December 31, 2024 and 2023 as if the Covenant acquisition made in 2024 was completed on January 1, 2023 are as follows (in thousands, except per share data):

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2024** | 2023 |
| Service revenues and sales | $**2448419**  | $2320177  |
| Net income | $**306224**  | $279615  |
| Earnings per share | $**20.38**  | $18.58  |
| Diluted earnings per share | $**20.16**  | $18.40  |

---

In late September and early October 2024, Hurricanes Helene and Milton impacted the panhandle of Florida and other parts of the southeastern United States. They did not result in any significant property loss or damage to VITAS. However, as with other similar events, we did experience a slowdown in admission activity while health systems prepared for the hurricane and then dealt with the aftermath.

 **<u>‎</u>** 

------

*LIQUIDITY AND CAPITAL RESOURCES* 

Material changes in the balance sheet accounts from December 31, 2024 to December 31, 2025 include the following:

An $11.4 million increase in accounts receivable due to the timing of payments. Other significant changes in our accounts receivable balances are typically driven by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $60.0 million from the Federal government for hospice services every other Friday. The timing of a period end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year.

A $47.1 million decrease in other assets primarily related to the refund of the OAS deposit.

A $20.3 million increase in accounts payable due to timing.

A $33.7 million decline in accrued compensation due primarily to lower bonus expense in 2025 and timing of year end payroll at VITAS.

A $16.0 million increase in other current liabilities due primarily to the increase in Medicare Cap liability.

A $10.1 million increase in deferred compensation liabilities due to market valuation gains. This resulted in a similar increase in the assets associated with deferred compensation plans.

Management continually evaluates cash utilization alternatives, including share repurchase, debt repurchase, acquisitions and increased dividends to determine the most beneficial use of available capital resources.

We anticipate that our operating income and cash flows will be sufficient to operate our business and meet any commitments for the foreseeable future.

The Company had no debt outstanding at December 31, 2025 and 2024. Our current ratio was 1.1 and 1.4 at December 31, 2025 and 2024, respectively.

On June 28, 2022, we replaced our existing credit facility with a fifth amended and restated Credit Agreement ("2022 Credit Facilities"). Terms of the 2022 Credit Facilities consist of a five-year $450.0 million revolver as well as a five-year $100.0 million term loan. The 2022 Credit Facilities have a floating interest rate that is generally SOFR plus an additional tiered rate which varies based on our current leverage ratio. As of December 31, 2025 the interest rate is SOFR plus 100 basis points. The 2022 Credit Facilities include an expansion feature that provides the Company the opportunity to increase its revolver and/or term loan by an additional $250.0 million.

The term loan was repaid in 2023. This prepayment reduced the total borrowing capacity of the 2022 Credit Facilities from $550.0 million to $450.0 million There were no prepayment penalties associated with repayments. There are no significant deferred debt issuance costs capitalized related to the term loan.

The 2022 Credit Facilities contains the following quarterly financial covenants effective as of December 31, 2025:

---

| | | |
|:---|:---|:---|
|  |  | Chemed |
| Description | Requirement | December 31, 2025 |
| Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) | < 3.50 to 1.00 | **(0.05) to 1.00** |
| Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense) | > 3.00 to 1.00 | **260.84 to 1.00** |

---

We forecast to be in compliance with all debt covenants through fiscal 2026.

We have issued $45.5 million in standby letters of credit as of December 31, 2025, mainly for insurance purposes. Issued letters of credit reduce our available credit under the revolving credit agreement. As of December 31, 2025, we have approximately $404.5 million of unused lines of credit available and eligible to be drawn down under our revolving credit facility. We believe our cash flow from operating activities and our unused eligible lines of credit are sufficient to fund our obligations and operate our business in the near and long term. We continually evaluate cash utilization alternatives, including share repurchase, debt repayment, acquisitions, and increased dividends to determine the most beneficial use of available capital resources.

------

### **CASH FLOW** 
Our cash flows for 2025, 2024 and 2023 are summarized as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | 2024 | 2023 |
| Net cash provided by operating activities | $**388.3**  | $417.5  | $330.3  |
| Capital expenditures | **(62.8)** | (49.5) | (56.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided for operating activities after capital expenditures | **325.5**  | 368.0  | 273.4  |
| Purchase of treasury stock in the open market | **(431.5)** | (361.4) | (67.7) |
| Dividends paid | **(31.7)** | (27.1) | (23.5) |
| Proceeds from exercise of stock options | **27.2**  | 56.5  | 102.2  |
| Change in cash overdraft payable | **11.0**  | (15.7) | 15.7  |
| Capital stock surrendered to pay taxes on stock-based compensation | **(8.8)** | (9.5) | (9.6) |
| Business combinations | **(0.2)** | (97.4) | (4.0) |
| Net decrease in long-term debt | **-** | - | (97.5) |
| Other--net | **4.7**  | 1.0  | 0.8  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease)/increase in cash and cash equivalents | $**(103.8)** | $(85.6) | $189.8  |

---

**<u>2025 versus 2024</u>**

Net cash provided by operating activities decreased $29.2 million from the year ended December 31, 2024 to the year ended December 31, 2025. The main drivers are a decrease in earnings of $36.8 million combined with working capital changes. Significant changes in our accounts receivable balances are driven mainly by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $60.0 million from the Federal government from hospice services every other Friday. The timing of year end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year. The swing in accounts receivable increased cash flow by $22.3 million between 2025 and 2024.

In 2025, we repurchased 932,500 shares of Chemed capital stock at a weighted average price of $459.02 per share. In 2024, we repurchased 638,235 shares of Chemed capital stock at a weighted average price of $562.08 per share. Based on our current operations and our current sources of capital, we believe we have the ability to continue our current share repurchase program into the foreseeable future.

**<u>2024 versus 2023</u>**

Net cash provided by operating activities increased $87.2 million from the year ended December 31, 2023 to the year ended December 31, 2024. The main drivers are an increase in earnings of $29.5 million combined with working capital changes. Significant changes in our accounts receivable balances are driven mainly by the timing of payments received from the Federal government at our VITAS subsidiary. We typically receive a payment in excess of $55.0 million from the Federal government from hospice services every other Friday. The timing of year end will have a significant impact on the accounts receivable at VITAS. These changes generally normalize over a two-year period, as cash flow variations in one year are offset in the following year. The swing in accounts receivable increased cash flow by $52.2 million between 2024 and 2023.

In 2024, we repurchased 638,235 shares of Chemed capital stock at a weighted average price of $562.08 per share. In 2023, we repurchased 132,969 shares of Chemed stock at a weighted average price of $555.12 per share. Based on our current operations and our current sources of capital, we believe we have the ability to continue our current share repurchase program into the foreseeable future.

*COMMITMENTS AND CONTINGENCIES* 

We are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and estimable. We disclose the existence of regulatory and legal actions when we believe it is reasonably possible that a loss could occur in connection with the specific action. In most instances, we are unable to make a reasonable estimate of any reasonably possible liability due to the uncertainty of the outcome and stage of litigation. We record legal fees associated with legal and regulatory actions as the costs are incurred.

------

Please see Note 18 in the Notes to the Consolidated Financial Statements for a description of current material legal and regulatory matters.

**CONTRACTUAL OBLIGATIONS**

The table below summarizes our debt and contractual obligations as of December 31, 2025 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Less than |  |  | After |
|  | Total | 1 year | 1-3 Years | 3-5 Years | 5 Years |
| Lease liabilities | 143759  | 43349  | 54269  | 30498  | 15643  |
| Purchase obligations (a) | 64459  | 64459  | - | - | - |
| Other long-term obligations (b) | 147448  | 2827  | 5654  | 2827  | 136140  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total contractual cash obligations | $355666  | $110635  | $59923  | $33325  | $151783  |
| (a) Purchase obligations consist of accounts payable at December 31, 2025. | (a) Purchase obligations consist of accounts payable at December 31, 2025. | (a) Purchase obligations consist of accounts payable at December 31, 2025. | (a) Purchase obligations consist of accounts payable at December 31, 2025. | (a) Purchase obligations consist of accounts payable at December 31, 2025. | (a) Purchase obligations consist of accounts payable at December 31, 2025. |
| (b) Other long-term obligations comprise largely excess benefit obligations. | (b) Other long-term obligations comprise largely excess benefit obligations. | (b) Other long-term obligations comprise largely excess benefit obligations. | (b) Other long-term obligations comprise largely excess benefit obligations. | (b) Other long-term obligations comprise largely excess benefit obligations. | (b) Other long-term obligations comprise largely excess benefit obligations. |

---

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*<u>RESULTS OF OPERATIONS</u>*

**<u>2025 Versus 2024 – Consolidated Results</u>**

Set forth below are the year-to-year changes in the components of the statement of operations relating to income for 2025 versus 2024 (in thousands, except percentages):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2025** | 2024 | **Percent** |
| Service revenues and sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;VITAS | $**1630101**  | $1530978  | 6.5  |
| &nbsp;&nbsp;&nbsp;&nbsp;Roto-Rooter | **899877**  | 900309  | (0.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **2529978**  | 2431287  | 4.1  |
| Cost of services provided and goods sold | **1706794**  | 1576939  | 8.2  |
| Selling, general and administrative expenses | **417188**  | 424360  | (1.7) |
| Depreciation | **54557**  | 52864  | 3.2  |
| Amortization | **10284**  | 10185  | 1.0  |
| Other operating expenses | **2909**  | 446  | 552.2  |
| Total cost and expenses | **2191732**  | 2064794  | 6.1  |
| Income from operations | **338246**  | 366493  | (7.7) |
| Interest expense | **(1750)** | (1780) | 1.7  |
| Other income - net | **19282**  | 34752  | (44.5) |
| Income before income taxes | **355778**  | 399465  | (10.9) |
| Income taxes | **(90540)** | (97466) | 7.1  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $**265238**  | $301999  | (12.2) |

---

The VITAS segment revenue is as follows (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2025** | 2024 | **Percent** |
| Routine homecare | $**1444494**  | $1326488  | 8.9  |
| Inpatient care | **133048**  | 120604  | 10.3  |
| Continuous care | **86661**  | 99746  | (13.1) |
| Other | **22926**  | 19455  | 17.8  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal | **1687129**  | 1566293  | 7.7  |
| Medicare cap adjustment | **(27161)** | (8414) | (222.8) |
| Implicit price concessions | **(14305)** | (13597) | (5.2) |
| Room and board, net | **(15562)** | (13304) | (17.0) |
| Net revenue | $**1630101**  | $1530978  | 6.5  |

---

Days of care are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2025** | 2024 | **Percent** |
| Routine homecare | **6685968**  | 6277961  | 6.5  |
| Nursing home | **1228789**  | 1230726  | (0.2) |
| Respite | **45221**  | 37961  | 19.1  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal routine homecare and respite | **7959978**  | 7546648  | 5.5  |
| Continuous care | **113891**  | 106299  | 7.1  |
| General inpatient | **79639**  | 95524  | (16.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total days of care | **8153508**  | 7748471  | 5.2  |

---

The increase in service revenues at VITAS is comprised primarily of a 5.2% increase in days-of-care, and a geographically weighted average Medicare reimbursement rate increase of approximately 3.4%. Acuity mix shift negatively impacted revenue growth

------

by 110-basis points when compared to prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes decreased revenue growth by 100-basis points.

The Roto-Rooter segment revenue is as follows (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2025** | 2024 | **Percent** |
| Drain cleaning | $**231794**  | $237534  | (2.4) |
| Plumbing | **182721**  | 181370  | 0.7  |
| Excavation | **238390**  | 227413  | 4.8  |
| Other  | **786**  | 883  | (11.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal - short term core | **653691**  | 647200  | 1.0  |
| Water restoration | **190216**  | 178016  | 6.9  |
| Independent contractors | **69405**  | 72777  | (4.6) |
| Franchisee fees | **5718**  | 5814  | (1.7) |
| Other | **18894**  | 23329  | (19.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross revenue | **937924**  | 927136  | 1.2  |
| Implicit price concessions and credit memos | **(38047)** | (26827) | (41.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net revenue | $**899877**  | $900309  | (0.0) |

---

The increase in plumbing revenues for 2025 versus 2024 is attributable to a 3.6% increase in job count offset by a 2.9% decrease in price and service mix shift. The decrease in drain cleaning revenues for 2025 versus 2024 is attributable to a 2.1% increase in price and service mix shift offset by a 4.5% decrease in job count. Excavation and water restoration jobs are generally sold as a result of initial calls from customers regarding drain cleaning issues. As a result, the 4.8% increase in excavation revenue and 6.9% increase in water restoration revenue are mainly a function of plumbing and drain cleaning jobs. Contractor operations decreased 4.6%. Implicit price concessions and credit memos increased 41.8% mainly related to the water restoration business.

The consolidated gross margin excluding depreciation was 32.5% in 2025 versus 35.1% in 2024. On a segment basis, VITAS' gross margin excluding depreciation was 22.8% in 2025 and 25.1% in 2024. The decline was primarily due to an increase in Medicare Cap liability of $18.7 million and an increase in variable patient care expenses and wages. Roto-Rooter's gross margin excluding depreciation was 50.1% in 2025 and 52.2% in 2024. The decline is primarily due to a $5.3 million increase in casualty insurance expense and a 41.8% increase in implicit price concessions and credit memos primarily related to the water restoration business line as well as an increase in variable expenses.

Selling, general and administrative expenses ("SG&A") for 2025 and 2024 comprise (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | 2024 |
| SG&A expenses before long-term incentive compensation, and the impact of market |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;value adjustments related to deferred compensation trusts | $**401013**  | $384069  |
| Impact of market value adjustments related to assets held in deferred compensation trusts | **10550**  | 20139  |
| Long-term incentive compensation | **5625**  | 20152  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total SG&A expenses | $**417188**  | $424360  |

---

SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for 2025 were up 4.4% when compared to 2024. This increase was mainly a result of a $2.4 million increase in legal expenses mainly at VITAS, and a $2.7 million severance accrual related to one former VITAS executive. The remaining increase is related to normal salary increases and an increase in variable selling expenses, primarily internet marketing costs at Roto-Rooter.

Included in the allocation of the purchase price for Roto-Rooter's 2019 acquisitions was $59.2 million related to reacquired franchise rights. Reacquired franchise rights, included in identifiable intangibles on the Consolidated Balance Sheets, are amortized over the period remaining in each individual franchise agreement. The average amortization period for reacquired franchise rights for the acquisitions made in 2019 is 7.4 years. In 2025 and 2024, amortization expense from the reacquired franchise rights for these two acquisitions was $8.1 million compared to the franchise fee revenue recognized from all other Roto-Rooter franchises, nationwide, of $1.8 million and $1.7 million, respectively.

‎

------

Other operating expense for 2025 and 2024 comprise (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | 2024 |
| Legal settlements | $**3071**  | $- |
| (Gain)/loss on disposal of property and equipment | **(162)** | 446  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other operating expenses | $**2909**  | $446  |

---

Other income-net for 2025 and 2024 comprise (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | 2024 |
| Market value adjustments related to deferred compensation trusts | $**10550**  | $20139  |
| Interest income | **8745**  | 14610  |
| Other  | **(13)** | 3  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income - net | $**19282**  | $34752  |

---

Our effective tax rate reconciliation is as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | 2024 |
| Income tax provision calculated using the statutory rate  | $**74713**  | $83888  |
| State and local income taxes, less federal income tax effect | **8752**  | 11811  |
| Nondeductible expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Limitation on executive compensation | **4427**  | 6012  |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess stock compensation tax provision/(benefit) | **696**  | (4442) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **1472**  | 1426  |
| Other-net | **480**  | (1229) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax provision | $**90540**  | $97466  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effective tax rate | **25.4** % | 24.4% |

---

Net income for both periods include the following after-tax adjustments that increased/(reduced) after-tax earnings (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | 2024 |
| VITAS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlements | $**(2325)** | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | **-** | (832) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **(378)** | - |
| Roto-Rooter |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of reacquired franchise agreements | **(7216)** | (7216) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | **-** | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **(406)** | - |
| Corporate |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | **(27659)** | (27053) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | **(4972)** | (18504) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **(2690)** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax (expense)/benefit on stock compensation | **(696)** | 4442  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $**(46342)** | $(49189) |

---

 **<u>‎</u>** 

------

**<u>2025 Versus 2024– Segment Results</u>**

Net income/(loss) for 2025 versus 2024 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | 2024 |
| VITAS | $**204009**  | $216819  |
| Roto-Rooter | **135493**  | 160046  |
| Corporate | **(74264)** | (74866) |
|  | $**265238**  | $301999  |

---

VITAS' after-tax earnings decreased mainly due to an increase in Medicare Cap liability of $18.7 million and an increase in legal expense of $3.9 million. After-tax earnings as a percent of revenue at VITAS in 2025 was 12.5% as compared to 14.2% in 2024.

Roto-Rooter's net income was negatively impacted in 2025 compared to 2024 due primarily to an increase in casualty insurance expense of $5.3 million and increased variable expenses combined with essentially flat revenue. Roto-Rooter's after-tax earnings as a percent of revenue in 2025 was 15.1% as compared to 17.8% in 2024.

After-tax Corporate expenses for 2025 decreased 0.8% when compared to 2024 due primarily to a $12.9 million decrease in stock-based compensation offset by $2.7 million in severance expense recorded for one former VITAS executive, a $5.9 million decrease in interest income and a $5.1 million decrease in excess tax benefit on stock compensation.

‎

------

*<u>RESULTS OF OPERATIONS</u>*

**<u>2024 Versus 2023 – Consolidated Results</u>**

Set forth below are the year-to-year changes in the components of the statement of operations relating to income for 2024 versus 2023 (in thousands, except percentages):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2024** | 2023 | **Percent** |
| Service revenues and sales |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;VITAS | $**1530978**  | $1315065  | 16.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Roto-Rooter | **900309**  | 949352  | (5.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **2431287**  | 2264417  | 7.4  |
| Cost of services provided and goods sold | **1576939**  | 1465602  | 7.6  |
| Selling, general and administrative expenses | **424360**  | 395120  | 7.4  |
| Depreciation | **52864**  | 50802  | 4.1  |
| Amortization | **10185**  | 10063  | 1.2  |
| Other operating expenses | **446**  | 2261  | (80.3) |
| Total cost and expenses | **2064794**  | 1923848  | 7.3  |
| Income from operations | **366493**  | 340569  | 7.6  |
| Interest expense | **(1780)** | (3108) | 42.7  |
| Other income - net | **34752**  | 12906  | 169.3  |
| Income before income taxes | **399465**  | 350367  | 14.0  |
| Income taxes | **(97466)** | (77858) | (25.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $**301999**  | $272509  | 10.8  |

---

The VITAS segment revenue is as follows (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2024** | 2023 | **Percent** |
| Routine homecare | $**1326488**  | $1136437  | 16.7  |
| Inpatient care | **120604**  | 112419  | 7.3  |
| Continuous care | **99746**  | 85674  | 16.4  |
| Other | **19455**  | 13582  | 43.2  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal | **1566293**  | 1348112  | 16.2  |
| Medicare cap adjustment | **(8414)** | (8000) | (5.2) |
| Implicit price concessions | **(13597)** | (14196) | 4.2  |
| Room and board, net | **(13304)** | (10851) | (22.6) |
| Net revenue | $**1530978**  | $1315065  | 16.4  |

---

Days of care are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2024** | 2023 | **Percent** |
| Routine homecare | **6277961**  | 5457963  | 15.0  |
| Nursing home | **1230726**  | 1118728  | 10.0  |
| Respite | **37961**  | 26605  | 42.7  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subtotal routine homecare and respite | **7546648**  | 6603296  | 14.3  |
| Continuous care | **106299**  | 101905  | 4.3  |
| General inpatient | **95524**  | 88631  | 7.8  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total days of care | **7748471**  | 6793832  | 14.1  |

---

The increase in service revenues at VITAS is comprised primarily of a 14.1% increase in days-of-care, and a geographically weighted average Medicare reimbursement rate increase of approximately 2.8%. Acuity mix shift negatively impacted revenue growth by 110-basis points when compared to prior year revenue and level-of-care mix. The combination of Medicare cap and other contra revenue changes increased revenue growth by 60-basis points.

------

The Roto-Rooter segment revenue is as follows (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Increase/(Decrease)** |
|  | **2024** | 2023 | **Percent** |
| Drain cleaning | $**237534**  | $249069  | (4.6) |
| Plumbing | **181370**  | 196695  | (7.8) |
| Excavation | **227413**  | 233196  | (2.5) |
| Other  | **883**  | 936  | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal - short term core | **647200**  | 679896  | (4.8) |
| Water restoration | **178016**  | 185550  | (4.1) |
| Independent contractors | **72777**  | 85749  | (15.1) |
| Franchisee fees | **5814**  | 5658  | 2.8  |
| Other | **23329**  | 19083  | 22.3  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross revenue | **927136**  | 975936  | (5.0) |
| Implicit price concessions and credit memos | **(26827)** | (26584) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net revenue | $**900309**  | $949352  | (5.2) |

---

The decrease in plumbing revenues for 2024 versus 2023 is attributable to a 1.6% decrease in price and service mix shift and a 6.2% decrease in job count. The decrease in drain cleaning revenues for 2024 versus 2023 is attributable to a 2.9% increase in price and service mix shift offset by a 7.5% decrease in job count. Excavation and water restoration jobs are generally sold as a result of initial calls from customers regarding drain cleaning issues. As a result, the 2.5% decrease in excavation revenue and 5.7% decrease in water restoration revenue are mainly a function of the decreased plumbing and drain cleaning jobs. Contractor operations decreased 15.1%.

The consolidated gross margin excluding depreciation was 35.1% in 2024 versus 35.3% in 2023. On a segment basis, VITAS' gross margin excluding depreciation was 25.1% in 2024 and 22.6% in 2023. The increase in gross margin at VITAS is mostly the result of the increased revenues and expiration of the retention bonus program. Roto-Rooter's gross margin excluding depreciation was 52.2% in 2024 and 52.8% in 2023.

Selling, general and administrative expenses ("SG&A") for 2024 and 2023 comprise (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| SG&A expenses before long-term incentive compensation, and the impact of market |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;value adjustments related to deferred compensation trusts | $**384069**  | $377027  |
| Long-term incentive compensation | **20152**  | 11689  |
| Impact of market value adjustments related to assets held in deferred compensation trusts | **20139**  | 6404  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total SG&A expenses | $**424360**  | $395120  |

---

SG&A expenses before long-term incentive compensation and the impact of market value adjustments related to deferred compensation trusts for 2024 were up 1.9% when compared to 2023. This increase was mainly a result of normal salary increases and an increase in variable selling expenses, primarily increased marketing expenses at Roto-Rooter.

Included in the allocation of the purchase price for Roto-Rooter's 2019 acquisitions was $59.2 million related to reacquired franchise rights. Reacquired franchise rights, included in identifiable intangibles on the Consolidated Balance Sheets, are amortized over the period remaining in each individual franchise agreement. The average amortization period for reacquired franchise rights for the acquisitions made in 2019 is 7.4 years. In 2024 and 2023, amortization expense from the reacquired franchise rights for these two acquisitions was $8.1 million compared to the franchise fee revenue recognized from all other Roto-Rooter franchises, nationwide, of $1.7 million and $1.6 million, respectively.

Other operating expense for 2024 and 2023 comprise (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| Loss on disposal of property and equipment | $**446**  | $211  |
| Legal settlements | **-** | 2050  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other operating expenses | $**446**  | $2261  |

---

‎

------

Other income-net for 2024 and 2023 comprise (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| Market value gains on assets held in deferred |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;compensation trusts | $**20139**  | $6404  |
| Interest income | **14610**  | 6270  |
| Other  | **3**  | 232  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense)/income | $**34752**  | $12906  |

---

Our effective tax rate reconciliation is as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| Income tax provision calculated using the statutory rate  | $**83888**  | $73577  |
| State and local income taxes, less federal income tax effect | **11811**  | 2306  |
| Nondeductible expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Limitation on executive compensation | **6012**  | 5268  |
| &nbsp;&nbsp;&nbsp;&nbsp;Excess stock compensation tax benefits | **(4442)** | (4330) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | **1426**  | 1332  |
| Other-net | **(1229)** | (295) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax provision | $**97466**  | $77858  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effective tax rate | **24.4** % | 22.2% |

---

During the third quarter of 2023, the Company recognized a tax benefit from realignment of its state and local corporate tax structure based on the location of operating resources and profitability by business segment. This benefit includes a reduction in current state and local tax expense and a one time benefit of $4.2 million in reduction of deferred tax liabilities reflecting the lower tax rates.

Net income for both periods include the following after-tax adjustments that increased/(reduced) after-tax earnings (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| VITAS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | $**(832)** | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impact of deferred rate tax change | **-** | 1772  |
| Roto-Rooter |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of reacquired franchise agreements | **(7216)** | (7216) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | **(26)** | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impact of deferred rate tax change | **-** | 3559  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlements | **-** | (1577) |
| Corporate |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | **(27053)** | (25405) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | **(18504)** | (10379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impact of deferred rate tax change | **-** | (1090) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefits on stock compensation | **4442**  | 4330  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $**(49189)** | $(36006) |

---

**<u>2024 Versus 2023 – Segment Results</u>**

Net income/(loss) for 2024 versus 2023 (in thousand):

---

| | | |
|:---|:---|:---|
|  | **2024** | 2023 |
| VITAS | $**216819**  | $158509  |
| Roto-Rooter | **160046**  | 188241  |
| Corporate | **(74866)** | (74241) |
|  | $**301999**  | $272509  |

---

------

VITAS' after-tax earnings increased mainly to higher revenue and the expiration of the retention bonus program. After-tax earnings as a percent of revenue at VITAS in 2024 was 14.2% as compared to 12.1% in 2023.

Roto-Rooter's after-tax earnings decreased due to lower revenue and a $3.6 million tax benefit due to the impact of the deferred rate tax change in 2023 which did not recur in 2024. Roto-Rooter's after-tax earnings as a percent of revenue at Roto-Rooter in 2024 was 17.8% as compared to 19.8% in 2023.

After-tax Corporate expenses for 2024 increased 0.8% when compared to 2023 due mainly to a $5.3 million severance agreement in 2024 and a $1.1 million tax expense due to the impact of the deferred rate tax change in 2023, which did not recur in 2024.

‎

------

*<u>CRITICAL ACCOUNTING ESTIMATES</u>*

**VITAS Revenue Implicit Price Concessions**

Service revenue for VITAS is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing patient care. These amounts are due from third-party payors, primarily government programs (Medicare and Medicaid) or commercial health insurers. Revenue is recorded at the government-mandated service level rate or the contractually agreed-upon service level rate, whichever is applicable for the patient being served. At the same time, a reduction in revenue is estimated and recorded for expected contractual adjustments. These contractual adjustments are referred to as "implicit price concessions". Implicit price concessions at VITAS are considered critical accounting estimates as they involve a significant amount of judgment by management. Over 95% of VITAS' revenue is from Medicare or Medicaid, resulting in the majority of implicit price concessions being related to Federal or state payors. The remainder of this discussion focuses on the process related to these Federal or state related implicit price concessions.

The laws and regulations governing hospice services are voluminous. Federal and state agencies, or their designated intermediaries, scrutinize hospice claims under various review initiatives to determine their validity and appropriateness. These reviews generally target specific categories of patients and are not statistically chosen. The Company has processes and procedures in place to help ensure compliance. The estimate of implicit price concessions is based on two main assumptions, as follows:

There are a small percentage of claims that are rejected by the payor soon after billing. These claims generally contain a minor non-medical, documentation defect in the billing process. The estimated implicit price concession for this type of claim is based mainly on historical experience which is relatively consistent from year-to-year. The implicit price concession estimate relating to this assumption is not material.

There are claims subject to the review process described above which are initially denied by the reviewer. There are many reasons that a claim may be denied including, but not limited to: defects in the non-medical documentation; a difference of opinion with respect to the medical condition of the patient; or a perceived lack of adequate medical documentation. Each denial is researched by a team of internal VITAS employees. There is a standard appeal process for any claim we believe was inappropriately denied. The appeal for these claims may take several months if not years to make it through the entire appeal process. The estimated implicit price concession for this type of claim is based on a number of key factors, including our historical success rate of appeal, settlement history for similar reviews, the types of reviews being conducted and the overall current review environment.

Our estimate currently assumes that we ultimately do not receive consideration for approximately 20% to 30% of claims currently selected for review or expected to be selected for review. If our current estimate changes by 1%, there would be a $2.8 million impact on our estimate of implicit price concessions.

Our estimates of implicit price concessions at VITAS are updated and reviewed quarterly based on the most recent facts available. Subsequent changes in facts and circumstances are recorded in the period they become known. There have been no changes to the assumptions that would significantly impact our estimate of implicit price concessions.

**Insurance Accruals** 

For the Roto-Rooter segment and Chemed's Corporate Office, we initially self-insure for all casualty insurance claims (workers' compensation, auto liability and general liability). As a result, we closely monitor and frequently evaluate our historical claims experience to estimate the appropriate level of accrual for self-insured claims. Our third-party administrator ("TPA") processes and reviews claims on a monthly basis. Currently, our exposure on any single claim is capped by stop-loss coverage at $750,000, with the exception of auto liability claims which are capped at $3.0 million of stop-loss coverage. In developing our estimates, we accumulate historical claims data for the previous 10 years to calculate loss development factors ("LDF") by insurance coverage type. LDFs are applied to known claims to estimate the ultimate potential liability for known and unknown claims for each open policy year. LDFs are updated annually. Because this methodology relies heavily on historical claims data, the key risk is whether the historical claims are an accurate predictor of future claims exposure. The risk also exists that certain claims have been incurred and not reported on a timely basis. To mitigate these risks, in conjunction with our TPA, we closely monitor claims to ensure timely accumulation of data and compare claims trends with the industry experience of our TPA.

For the VITAS segment, we initially self-insure for workers' compensation claims. Currently, VITAS' exposure on any single claim is capped at $1,000,000, due to stop loss insurance held with a commercial insurance carrier. For VITAS' self-insurance accruals for workers' compensation, the valuation methods used are similar to those used internally for our other business units. We are also insured for other risks with respect to professional liability with a deductible of $1,000,000.

------

Our casualty insurance liabilities are recorded gross before any estimated recovery for amounts exceeding our stop loss limits. Estimated recoveries from insurance carriers are recorded as accounts receivable. Claims experience adjustments to our casualty and workers' compensation accrual for the years ended December 31, 2025, 2024 and 2023, were net pretax expense/(credits) of $81,000, ($10,374,000), and ($6,862,000), respectively.

As an indication of the sensitivity of the accrued liability to reported claims, our analysis indicates that a 1% across-the-board increase or decrease in the amount of projected losses would increase or decrease the accrued insurance liability at December 31, 2025 by $5.4 million or 8.7%. While the amount recorded represents our best estimate of the casualty and workers' compensation insurance liability, we have calculated, based on historical claims experience, the actual loss could reasonably be expected to increase or decrease by approximately $500,000 as of December 31, 2025.

‎

------

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Chemed Corporation and Subsidiary Companies** | **Chemed Corporation and Subsidiary Companies** | **Chemed Corporation and Subsidiary Companies** | **Chemed Corporation and Subsidiary Companies** | **Chemed Corporation and Subsidiary Companies** | **Chemed Corporation and Subsidiary Companies** |
| **Unaudited Consolidating Summaries and Reconciliations of Adjusted EBITDA (in thousands)** | **Unaudited Consolidating Summaries and Reconciliations of Adjusted EBITDA (in thousands)** | **Unaudited Consolidating Summaries and Reconciliations of Adjusted EBITDA (in thousands)** | **Unaudited Consolidating Summaries and Reconciliations of Adjusted EBITDA (in thousands)** | **Unaudited Consolidating Summaries and Reconciliations of Adjusted EBITDA (in thousands)** | **Unaudited Consolidating Summaries and Reconciliations of Adjusted EBITDA (in thousands)** |
|  |  |  |  |  | **Chemed** |
| **2025**  |  | **VITAS** | **Roto-Rooter** | **Corporate** | &nbsp;&nbsp;&nbsp;&nbsp;**Consolidated** |
|  | **Net income/(loss)** | $**204009**  | $**135493**  | $**(74264)** | $**265238**  |
|  | **Add/(deduct):** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Interest expense** | **185**  | **611**  | **954**  | **1750**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income taxes** | **65523**  | **41037**  | **(16020)** | **90540**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Depreciation** | **21308**  | **33200**  | **49**  | **54557**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amortization** | **104**  | **10180**  | **-** | **10284**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EBITDA** | **291129**  | **220521**  | **(89281)** | **422369**  |
|  | **Add/(deduct):** |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Intercompany interest/(expense)** | **(22455)** | **(16245)** | **38700**  | **-** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Interest income** | **(334)** | **(77)** | **(8335)** | **(8746)** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Stock option expense** | **-** | **-** | **32671**  | **32671**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Long-term incentive compensation** | **-** | **-** | **5625**  | **5625**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Legal settlements** | **3071**  | **-** | **-** | **3071**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other** | **500**  | **530**  | **2690**  | **3720**  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Adjusted EBITDA** | $**271911**  | $**204729**  | $**(17930)** | $**458710**  |
|  |  |  |  |  | Chemed |
| 2024  |  | VITAS | Roto-Rooter | Corporate | &nbsp;&nbsp;&nbsp;&nbsp;Consolidated |
|  | Net income/(loss) | $216819  | $160046  | $(74866) | $301999  |
|  | Add/(deduct): |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 171  | 431  | 1178  | 1780  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 67414  | 48510  | (18458) | 97466  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 20362  | 32452  | 50  | 52864  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 105  | 10080  | - | 10185  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA | 304871  | 251519  | (92096) | 464294  |
|  | Add/(deduct): |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intercompany interest/(expense) | (20211) | (14397) | 34608  | - |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | (224) | (69) | (14317) | (14610) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | - | - | 32033  | 32033  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | - | - | 20152  | 20152  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | 1099  | 34  | - | 1133  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $285535  | $237087  | $(19620) | $503002  |
|  |  |  |  |  | Chemed |
| 2023  |  | VITAS | Roto-Rooter | Corporate | &nbsp;&nbsp;&nbsp;&nbsp;Consolidated |
|  | Net income/(loss) | $158509  | $188241  | $(74241) | $272509  |
|  | Add/(deduct): |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 180  | 442  | 2486  | 3108  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 46115  | 50125  | (18382) | 77858  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 19959  | 30790  | 53  | 50802  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 104  | 9959  | - | 10063  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA | 224867  | 279557  | (90084) | 414340  |
|  | Add/(deduct): |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intercompany interest/(expense) | (19400) | (11918) | 31318  | - |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | (1078) | (125) | (5067) | (6270) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | - | - | 30082  | 30082  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | - | - | 11689  | 11689  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlements | - | 2056  | - | 2056  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $204389  | $269570  | $(22062) | $451897  |

---

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------

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| | | | |
|:---|:---|:---|:---|
| **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** |
| **RECONCILIATION OF ADJUSTED NET INCOME** | **RECONCILIATION OF ADJUSTED NET INCOME** | **RECONCILIATION OF ADJUSTED NET INCOME** | **RECONCILIATION OF ADJUSTED NET INCOME** |
| **(in thousands, except per share data)(unaudited)** | **(in thousands, except per share data)(unaudited)** | **(in thousands, except per share data)(unaudited)** | **(in thousands, except per share data)(unaudited)** |
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025**  | 2024  | 2023  |
| Net income as reported | $**265238**  | $301999  | $272509  |
| Add/(deduct) pre-tax cost of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense | **32671**  | 32033  | 30082  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of reacquired franchise agreements | **9408**  | 9408  | 9408  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term incentive compensation | **5625**  | 20152  | 11689  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlements | **3071**  | - | 2056  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition expense | **-** | 1133  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **3720**  | - | - |
| Add/(deduct) tax impacts: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax impact of the above pre-tax adjustments (1) | **(8849)** | (9095) | (8658) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax impact of deferred tax rate change | **-** | - | (4241) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax expense/(benefit) on stock compensation | **696**  | (4442) | (4330) |
| Adjusted net income | $**311580**  | $351188  | $308515  |
| Diluted Earnings Per Share As Reported |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $**18.34**  | $19.89  | $17.93  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average number of shares outstanding | **14460**  | 15186  | 15200  |
| Adjusted Diluted Earnings Per Share |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $**21.55**  | $23.13  | $20.30  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average number of shares outstanding | **14460**  | 15186  | 15200  |
| (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated. | (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated. | (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated. | (1) The tax impact of pre-tax adjustments was calculated using the effective tax rate of the operating unit for which each adjustment is associated. |
| The "Footnotes to Financial Statements" are integral parts of this financial information. | The "Footnotes to Financial Statements" are integral parts of this financial information. | The "Footnotes to Financial Statements" are integral parts of this financial information. | The "Footnotes to Financial Statements" are integral parts of this financial information. |

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| | | | | |
|:---|:---|:---|:---|:---|
| **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** | **CHEMED CORPORATION AND SUBSIDIARY COMPANIES** |
| **OPERATING STATISTICS FOR VITAS SEGMENT(unaudited)** | **OPERATING STATISTICS FOR VITAS SEGMENT(unaudited)** | **OPERATING STATISTICS FOR VITAS SEGMENT(unaudited)** | **OPERATING STATISTICS FOR VITAS SEGMENT(unaudited)** | **OPERATING STATISTICS FOR VITAS SEGMENT(unaudited)** |
|  | Three Months Ended December 31, | Three Months Ended December 31, | Year Ended December 31, | Year Ended December 31, |
| OPERATING STATISTICS | **2025** | 2024 | **2025** | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net revenue ($000)  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homecare | $**372480** | $358507 | $**1444494** | $1326488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inpatient | **32903** | 31307 | **133048** | 120604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuous care | **18438** | 25451 | **86661** | 99746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **6029** | 5556 | **22926** | 19455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | $**429850** | $420821 | $**1687129** | $1566293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Room and board, net | **(4285)** | (3867) | **(15562)** | (13304) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual allowances | **(4430)** | (3521) | **(14305)** | (13597) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medicare cap allowance | **(2375)** | (2425) | **(27161)** | (8414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $**418760** | $411008 | $**1630101** | $1530978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net revenue as a percent of total before Medicare cap allowance |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homecare | **86.7%** | 85.2% | **85.6%** | 84.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inpatient | **7.7** | 7.4 | **7.9** | 7.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuous care | **4.3** | 6.0 | **5.1** | 6.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **1.3** | 1.4 | **1.4** | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal | **100.0** | 100.0 | **100.0** | 100.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Room and board, net | **(0.9)** | (0.9) | **(0.9)** | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual allowances | **(1.0)** | (0.8) | **(0.9)** | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medicare cap allowance | **(0.6)** | (0.6) | **(1.6)** | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **97.5%** | 97.7% | **96.6%** | 97.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Days of Care |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homecare | **1705085** | 1656206 | **6685968** | 6277961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nursing home | **305331** | 322713 | **1228789** | 1230726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Respite | **11602** | 11155 | **45221** | 37961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal routine homecare and respite | **2022018** | 1990074 | **7959978** | 7546648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inpatient | **27444** | 27235 | **113891** | 106299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuous care | **17063** | 23189 | **79639** | 95524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **2066525** | 2040498 | **8153508** | 7748471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of days in relevant time period | **92** | 92 | **365** | 366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average daily census ("ADC") (days) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Homecare | **18533** | 18002 | **18318** | 17153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nursing home | **3319** | 3508 | **3367** | 3363 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Respite | **126** | 121 | **123** | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal routine homecare and respite | **21978** | 21631 | **21808** | 20620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inpatient | **298** | 296 | **312** | 290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuous care | **186** | 252 | **218** | 261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **22462** | 22179 | **22338** | 21171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Admissions | **17419** | 16427 | **70817** | 67447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Discharges | **17599** | 16333 | **70530** | 64618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average length of stay (days) | **115.1** | 105.5 | **120.2** | 103.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Median length of stay (days) | **17.0** | 18.0 | **18.0** | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADC by major diagnosis |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cerebro | **44.3%** | 44.2% | **44.6%** | 44.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neurological | **11.4** | 12.9 | **11.7** | 13.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancer | **10.0** | 9.9 | **9.8** | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cardio | **16.0** | 16.2 | **16.0** | 16.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Respiratory | **7.6** | 6.9 | **7.4** | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **10.7** | 9.9 | **10.5** | 9.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **100.0%** | 100.0% | **100.0%** | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admissions by major diagnosis |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cerebro | **27.3%** | 28.0% | **27.4%** | 27.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neurological | **6.8** | 7.0 | **6.9** | 7.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancer | **26.4** | 25.9 | **26.0** | 25.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cardio | **14.6** | 15.3 | **14.7** | 15.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Respiratory | **10.8** | 9.8 | **10.9** | 9.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **14.1** | 14.0 | **14.1** | 13.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | **100.0%** | 100.0% | **100.0%** | 100.0% |
| &nbsp;&nbsp;&nbsp;Bad debt expense as a percent of revenues | **1.1%** | 0.9% | **1.0**% | 0.9% |
| &nbsp;&nbsp;&nbsp;Accounts receivable --Days of revenue outstanding- excluding unapplied Medicare payments | **38.7** | 40.0 | **N.A.** | N.A. |
| &nbsp;&nbsp;&nbsp;Accounts receivable--Days of revenue outstanding- including unapplied Medicare payments | **28.9** | 28.5 | **N.A.** | N.A. |

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*<u>SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 REGARDING FORWARD-LOOKING INFORMATION</u>*

In addition to historical information, this report contains forward-looking statements and performance trends that are based upon assumptions subject to certain known and unknown risks, uncertainties, contingencies and other factors. Such forward-looking statements and trends include, but are not limited to, the impact of laws and regulations on our operations, our estimate of future effective income tax rates and the recoverability of deferred tax assets. Variances in any or all of the risks, uncertainties, contingencies, and other factors from our assumptions could cause actual results to differ materially from these forward-looking statements and trends. Our ability to deal with the unknown outcomes of these events, many of which are beyond our control, may affect the reliability of our projections and other financial matters.

## Exhibit 10.19

#### CHEMED CORPORATION CHANGE IN CONTROL SEVERANCE PLAN AS AMENDED AUGUST 3 , 2018
 **<u>ARTICLE I <br>ESTABLISHMENT and amendment OF PLAN</u>**<br>

As of the Effective Date, the Company (as such term is hereinafter defined) established the Chemed Corporation Change in Control Severance Plan, as set forth in this document. As of the Amendment Date, the Company amended the Plan to provide that the tax gross-up provisions in Section 6.3 shall apply only to those individuals who were Participants in the Plan on the Amendment Date and not to anyone designated as a Participant following the Amendment Date (all such terms are hereinafter defined).

 **<u>ARTICLE II <br>PURPOSE</u>**<br>

Chemed Corporation, by means of this Change in Control Severance Plan, desires to provide Participants (as such term is hereinafter defined) with certain severance protections in the event of a Change in Control of the Company (as both terms are hereinafter defined) in order to minimize the personal financial concerns and to promote the best interests of the Company and any successor.

 **<u>ARTICLE III <br>DEFINITIONS</u>**<br>

As used herein, the following words and phrases shall have meanings set forth below (unless the context clearly indicates otherwise):

SECTION 3.1. "<u>Administrative Committee</u>" shall mean the Compensation/ Incentive Committee of the Board of Directors or such other committee as determined by the Board of Directors.

SECTION 3.2. "<u>Affiliate</u>" shall mean an entity directly or indirectly controlled by, controlling, or under common control with the Company.

SECTION 3.3. "<u>Amendment Date</u>" shall mean August 3, 2018.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 3.4. "<u>Annual Bonus</u>" shall mean the average of the amounts of the Participant's bonuses under an Employer's annual bonus plan paid or payable for the last three full fiscal years prior to the Change in Control Date, or if more favorable to the Participant, the Date of Termination. The amount shall include any annual bonus or portion thereof which has been earned but deferred, and in the event that the Participant was not employed by an Employer for the whole of a particular fiscal year and such amount received by the Participant was reduced pro-rata to reflect this fact, the amount shall be annualized.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 3.5. "<u>Base Salary</u>" shall mean the amount a Participant is entitled to receive from an Employer in cash as wages or salary on an annualized basis in consideration for his or her services, including any such amounts which may have been deferred, but excluding all other elements of compensation such as, without limitation, any bonus, commissions, overtime, health benefits, perquisites, and incentive compensation.<br>

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SECTION 3.6. "<u>Beneficiary</u>" shall mean those designated by the Participant, or if not so designated:

(a) with respect to a Participant who was married at the time of death, his or her surviving spouse; and

(b) with respect to a Participant who was not married at the time of death, the legal representative of the Participant's estate under the laws of the state of the Participant's domicile at the time of death.

SECTION 3.7. "<u>Board</u>" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 3.8. "<u>Cause</u>" shall mean, with respect to a Participant's termination of employment: (a) the willful and repeated failure of the Participant to perform substantially the Participant's duties with an Employer (other than any such failure resulting from incapacity due to physical or mental illness); (b) the Participant's conviction of, or plea of guilty or nolo contendere to, which through lapse of time or otherwise is not subject to appeal, a felony which is materially and demonstrably injurious to an Employer; or (c) the Participant's engagement in willful gross misconduct or gross negligence in connection with his or her employment.<br>

SECTION 3.9. "<u>Change in Control</u>" shall mean the first to occur of any of the following events after the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the direct or indirect acquisition by any person, corporation, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the "Exchange Act")) (a "Person") of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either the then outstanding capital stock of the Company ("Outstanding Capital Stock") or the combined voting power of the then outstanding voting securities of the Company entitled to vote in the election of members of the Board ("Outstanding Voting Securities") in a single transaction or series of transactions; provided, however, that the following acquisitions shall not constitute a Change in Control:<br>

(i) an acquisition from the Company or an Affiliate;

(ii) an acquisition by the Company or an Affiliate;

(iii) an acquisition by an employee benefit plan or related trust sponsored or maintained by the Company or an Affiliate; or

(iv) an acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii), and (iii) of Subsection (c) of this Section 3.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Individuals who, as of the Effective Date, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board, provided, however, that any individual becoming a Board member subsequent to the Effective Date whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least a majority of the Board members then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of Board members or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) the consummation of a reorganization, merger, consolidation, or similar transaction to which the Company is a party (a "Business Combination"), unless following such Business Combination: (i) the Company is the surviving corporation of such Business Combination, (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan or related trust of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding capital stock or the combined voting power of the then outstanding voting securities entitled to vote in the election of members of the board, as the case may be, of the corporation resulting from such Business Combination, except to the extent that such ownership existed prior to such Business Combination; and (iii) individuals who were members of the Incumbent Board constitute at least a majority of the members of the board of the corporation resulting from such Business Combination;<br>

(d) the approval by the shareholders of the Company of a plan for the complete liquidation or dissolution of the Company or the sale of all or substantially all of the assets of the Company; or

(e) any other transaction that the Administrative Committee deems to be a Change in Control, which the Administrative Committee can deem to apply to all Participants or only those Participants it selects.

SECTION 3.10. "<u>Change in Control Date</u>" shall mean the date on which a Change in Control occurs.

SECTION 3.11. "<u>Company</u>" shall mean Chemed Corporation and any successor thereto.

SECTION 3.12. "<u>Date of Termination</u>" shall mean the date on which a Participant's employment with all Employers terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 3.13. "Disability" shall mean, with respect to a Participant's termination of employment due to Disability: (a) a disability entitling the Participant to long-term disability benefits under the applicable long-term disability plan of the Company or an Affiliate or such other long-term disability plan under which the Participant is entitled to long-term disability benefits; or (b) if the Participant is not covered by such a plan, a physical or mental condition or illness that renders a Participant totally and permanently incapable of performing the Participant's duties for the Company or an Affiliate for a total of 180 days or more during any consecutive 12-month period.<br>

SECTION 3.14. "<u>Effective Date</u>" shall mean December 1, 2006.

SECTION 3.15. "<u>Employee</u>" shall mean any full-time employee of an Employer.

SECTION 3.16. "<u>Employer</u>" shall mean the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 3.17. "<u>Good Reason</u>" shall mean, with respect to any Participant, the occurrence of any of the following events after expiration of a 30-day cure period afforded the Company to remedy any of the following events claimed by the Participant following a Change in Control Date, or prior to a Change in Control Date if any such events can be reasonably demonstrated to have occurred in connection with, or in anticipation of, a Change in Control:<br>

(a) a material diminution in the nature and scope of the Participant's responsibilities, authorities, powers, functions, or duties from the most significant of those responsibilities, 3

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorities, powers, functions, or duties exercised by, and assigned to, the Participant at any time during the 120-day period prior to the Change in Control Date, other than an isolated, insubstantial, and inadvertent action not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Participant;<br>

(b) a material reduction in the Participant's Base Salary below the Required Base Salary, other than an isolated, insubstantial, and inadvertent reduction not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Participant;

(c) a material reduction in bonus under any current or subsequent annual bonus plan available to the Participant below the average of the Participant's bonuses under an Employer's annual bonus plan for the last three full fiscal years prior to the Change in Control Date;

(d) a material reduction in equity-based or other long-term incentive compensation opportunity below that in effect for the Participant during the 120-day period prior to the Change in Control Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) a material reduction in the aggregate level of employee benefits offered to the Participant in comparison to the most favorable of such employee benefit programs and arrangements in effect for the Participant during the 120-day period prior to the Change in Control Date, other than any across-the-board reduction applicable to all Employees and other than an isolated, insubstantial, and inadvertent reduction not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Participant; or<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) a change at the request of an Employer in the Participant's principal work location to a work location that is more than 50 miles from any location where the Participant was based during the 120-day period prior to the Change in Control Date, or an Employer's requiring the Participant to travel on Employer business to a substantially greater extent than required during the 120-day period prior to the Change in Control Date; or<br>

(g) receipt of notice of Company's intention to cancel or not renew any employment agreement of a Tier 1 Participant during the first year following a Change in Control.

SECTION 3.18. "<u>Participant</u>" shall mean an Employee who is designated in Appendix A hereto to participate in the Plan or who may be added to such appendix from time to time by the Administrative Committee.

SECTION 3.19. "<u>Plan</u>" shall mean the Chemed Corporation Change in Control Severance Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 3.20. "<u>Required Base Salary</u>" shall mean, with respect to any Participant, the higher of: (a) the Participant's highest Base Salary as in effect during the 120-day period prior to the Change in Control Date; and (b) the Participant's highest Base Salary in effect at any time thereafter.<br>

SECTION 3.21. "<u>Severance Benefits</u>" shall mean the payments and benefits provided in accordance with Section 6.2 of the Plan.

SECTION 3.22. "<u>Severance Period</u>" shall mean a period beginning on the Date of Termination with a duration in years equal to the severance multiple the Participant is entitled to receive under Section 6.2(a).

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 **<u>ARTICLE IV <br>ADMINISTRATION</u>**<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 4.1. <u>Administration</u>. Subject to the express provisions of the Plan, the Administrative Committee shall have the authority to interpret the Plan, to prescribe, amend, and rescind rules and regulations relating to it, and to make all other determinations deemed necessary or advisable for the administration of the Plan. The determinations of the Administrative Committee pursuant to its authority under the Plan shall be conclusive and binding.<br>

 **<u>ARTICLE V <br>DURATION OF PARTICIPATION</u>**<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 5.1. <u>Duration of Participation</u>. A Participant shall cease to be a Participant in the Plan when he or she no longer is an Employee of any Employer. Notwithstanding the foregoing, a Participant who is entitled, as a result of ceasing to be an Employee of an Employer, to receipt of Severance Benefits or any other amounts under the Plan shall remain a Participant in the Plan until the full amount of the Severance Benefits and any other amounts payable under the Plan have been paid to the Participant.<br>

 **<u>ARTICLE VI <br>SEVERANCE BENEFITS</u>**<br>

SECTION 6.1. <u>Right to Severance Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) <u>Terminations Which Give Rise to Severance Benefits</u>. A Participant shall be entitled to receive Severance Benefits as provided in Section 6.2, if a Change in Control has occurred and the Participant's employment with an Employer is terminated under the following circumstances: (i) by action of the Employer, unless the termination is for Cause; or (ii) by action of the Participant within 90 days after the occurrence of an event constituting Good Reason; provided, in either event, that (x) such termination occurs after such Change in Control and on or before the second anniversary thereof, or (y) the termination described in clause (i) above or the event constituting Good Reason giving rise to the termination described in clause (ii) above, as applicable, occurs before such Change in Control but the Participant can reasonably demonstrate that such termination or event, as applicable, occurred in connection with, or in anticipation of, a Change in Control. Severance Benefits or any other amounts otherwise payable to a Participant under the Plan shall be conditioned upon execution of a general release of claims in favor of the Company in a form satisfactory to the Company's counsel.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) <u>Terminations Which Do Not Give Rise to Severance Benefits</u>. If a Participant's employment is terminated: (i) by an Employer for Cause; (ii) due to the Participant's death or Disability; or (iii) by the Participant other than for Good Reason, the Participant shall not be entitled to the Severance Benefits under the Plan, regardless of the occurrence of a Change in Control.<br>

SECTION 6.2. <u>Severance Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) <u>In General</u>. If a Participant's employment is terminated in circumstances entitling him or her to Severance Benefits as provided in Section 6.1(a), the Company shall pay such Participant (or in the event of a Participant's death following entitlement to Severance Benefits, his or her Beneficiary), an amount equal to three times for Tier 1 Participants and two times for Tier 2 Participants, the sum of the Participant's: (i) Required Base Salary; and (ii) Annual Bonus. In addition, Participant shall receive an amount equal to the product of the Participant's: (x) Annual Bonus; and (ii) a fraction, the numerator of which is the number of days in the fiscal year through the Date of Termination and the denominator of which is 365, if such termination occurs in a fiscal year other than the fiscal year of the Change in <br>5 <br>

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Control. All such payments shall be made in a lump sum in cash within 10 days after the Date of Termination, but in no event later than the following March 15. Regardless of termination, a Participant shall receive an amount equal to the Participant's Annual Bonus within 10 days after the Change in Control Date.<br>

(b) Payment shall be made in a lump sum in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) <u>Welfare Benefits; Retirement Plans; Perquisites</u>. In addition, a Participant entitled to Severance Benefits pursuant to Section 6.1(a) will continue to be provided with health insurance, life insurance, long-term care insurance and long-term disability benefits comparable to the benefits provided to the Participant immediately prior to the Date of Termination, or if more favorable to the Participant, the Change in Control, for the duration of the Severance Period, with no increase in the Employee's contribution rate on the Date of Termination (without giving effect to any rate increase after the Change in Control which constitutes or may constitute Good Reason); provided that if the Participant is precluded from continuing his or her participation in any applicable plan, program, or arrangement, the Participant shall be provided with the after-tax cost of continuation of such coverage, including premiums under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, ("COBRA Premiums"), for the Participant with respect to the benefits provided under such plan, program, or arrangement, paid as a lump sum payment within 10 days after Termination, but in no event later than the following March 15. Any benefits so provided shall not be considered a continuation of coverage as provided under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. A Participant entitled to Severance Benefits pursuant to Section 6.1(a) shall also receive a lump sum payment in cash within 10 days after the Change in Control but in no event later than the following March 15, equal to the Employer contributions that would have been made on the Participant's behalf pursuant to the Company's qualified and non-qualified defined contribution retirement plans, assuming continued participation on the same basis as immediately prior to the Date of Termination, or if more favorable to the Participant, the Change in Control, which the Participant would have received if the Participant's employment had continued during the Severance Period, assuming that the Participant's compensation for each year during such period is as in effect immediately prior to the Date of Termination, or if more favorable to the Participant, the Change in Control, and that the Employer contributions are determined pursuant to the applicable plans as in effect immediately prior to the Date of Termination, or if more favorable to the Participant, the Change in Control. A Participant entitled to Severance Benefits pursuant to Section 6.1(a) will continue to be provided with a cash payment equal to the value to the Participant of perquisites comparable to those provided to the Participant immediately prior to the Date of Termination, or if more favorable to the Participant, the Change in Control, for the duration of the Severance Period. Such cash payment shall be paid in a lump sum within 10 days of Termination, but in no event later than the following March 15. If the Participant becomes reemployed with another employer and is eligible to receive health insurance, life insurance, long-term care insurance or long-term disability coverage under another employer-provided plan (regardless of whether the Participant elects such coverage), the health insurance, life insurance, and long-term disability benefits provided pursuant to this section shall be secondary to those provided under such other plan during the applicable period of eligibility. Long-term care insurance vests by its terms upon a Change in Control.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) <u>Equity Vesting</u>. In the event of a Change in Control (whether or not a Participant's employment terminates): (i) any unvested portions of stock awards or options granted under the Company's equity-based plans shall become fully vested upon the Change in Control; and (ii) any shares then unallocated under the Company's equity-based plans shall then be allocated and distributed to such plan's participants by the Compensation/Incentive Committee of the Company's Board of Directors upon the Change in Control.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) <u>Outplacement</u>. A Participant entitled to Severance Benefits under Section 6.1(a) shall be entitled to receive outplacement assistance at an agency of his or her choice, in an amount not to exceed <br>6 <br>

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$25,000.00. Such outplacement services must be used no later than December 31 of the second year following the year in which the Date of Termination occurred.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 6.3. <u>Certain Additional Payments by the Company</u> <u>to Grandfathered Participants</u>. This Section 6.3 shall apply only to those individuals who were Participants in the Plan on the Amendment Date and not to anyone designated as a Participant following the Amendment Date, other than with respect to defined terms that are used in Section 6.4.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) In the event that any payment or benefit to the Participant or for the Participant's benefit paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise in connection with, or arising out of, the Participant's employment with an Employer or a change in ownership or effective control of the Company or of a substantial portion of its assets (a "Payment"), would be subject to the excise tax imposed by Section 4999 of the Code or any tax imposed by Section 409A of the Code, or any interest or penalties are incurred by the Participant with respect to such tax (such tax, together with any such interest and penalties, are hereinafter collectively referred to herein as the "Excise Tax"), then the Participant will be entitled to receive an additional payment (a "Gross-Up Payment") in an amount such that after payment by the Participant of all taxes (including any income, payroll, interest or penalties imposed with respect to such taxes and the Excise Tax, other than interest and penalties imposed by reason of the Participant's failure to file timely a tax return or pay taxes shown due on the Participant's return, and including any Excise Tax imposed upon the Gross-Up Payment), the Participant retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) An initial determination as to whether a Gross-Up Payment is required pursuant to this Plan and the amount of such Gross-Up Payment will be made at the Company's expense by an accounting firm of recognized national standing selected by the Company (the "Accounting Firm"). The Accounting Firm will provide its determination (the "Determination"), together with detailed supporting calculations and documentation, to the Company and the Participant within five days prior to a Change in Control, or such other time as requested by the Company or by the Participant (provided the Participant reasonably believes that any of the Payments may be subject to the Excise Tax). If the Accounting Firm determines that no Excise Tax is payable by the Participant with respect to a Payment or Payments, it will furnish the Participant with an opinion reasonably acceptable to the Participant that no Excise Tax will be imposed with respect to any such Payment or Payments. Within 10 days of the delivery of the Determination to the Participant, the Participant will have the right to dispute the Determination (the "Dispute"). The Gross-Up Payment, if any, as determined pursuant to this Section 6.3(b) will be paid by the Company to the Participant within 5 days of the receipt of the Determination. The existence of the Dispute will not in any way affect the Participant's right to receive the Gross-Up Payment in accordance with the Determination. If there is no Dispute, the Determination will be binding, final and conclusive upon the Company and the Participant, subject to the application of Section 6.3(c).<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) As a result of uncertainty in the application of Sections 280G, 409A, and 4999 of the Code, it is possible that a Gross-Up Payment (or a portion thereof) will be paid which should not be paid (an "Excess Payment") or that a Gross-Up Payment (or a portion thereof) which should be paid will not be paid (an "Underpayment"). An Underpayment will be deemed to have occurred (i) upon notice (formal or informal) to the Participant from any governmental taxing authority that the Participant's tax liability (whether in respect of the Participant's current taxable year or in respect of any prior taxable year) may be increased by reason of the imposition of the Excise Tax on a Payment or Payments with respect to which the Company has failed to make a sufficient Gross-Up Payment, (ii) upon a determination by a court, (iii) by reason of a determination by the Company (which will include the position taken by the Company on its federal income tax return) or (iv) upon the resolution of the Dispute to the Participant's satisfaction. If an Underpayment occurs, the Participant will promptly notify the Company and the Company will promptly, but in any event at least 5 days prior to the date on which the applicable government taxing authority has <br>7 <br>

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requested payment, pay to the Participant an additional Gross-Up Payment equal to the amount of the Underpayment plus any interest and penalties (other than interest and penalties imposed by reason of the Participant's failure to file timely a tax return or pay taxes shown due on the Participant's return) imposed on the Underpayment. An Excess Payment will be deemed to have occurred upon a Final Determination (as hereinafter defined) that the Excise Tax will not be imposed upon a Payment or Payments (or portion thereof) with respect to which the Participant had previously received a Gross-Up Payment. A "Final Determination" will be deemed to have occurred when the Participant has received from the applicable government taxing authority a refund of taxes or other reduction in the Participant's tax liability by reason of the Excise Payment and upon either (x) the date a determination is made by, or an agreement is entered into with, the applicable governmental taxing authority which finally and conclusively binds the Participant and such taxing authority, or in the event that a claim is brought before a court of competent jurisdiction, the date upon which a final determination has been made by such court and either all appeals have been taken and finally resolved or the time for all appeals has expired or (y) the statute of limitations with respect to the Participant's applicable tax return has expired. If an Excess Payment is determined to have been made, the Participant will pay to the Company (but not less than 10 days after the determination of such Excess Payment and written notice has been delivered to the Participant) the amount of the Excess Payment plus interest at an annual rate equal to the Applicable Federal Rate provided for in Section 1274(d) of the Code from the date the Gross-Up Payment (to which the Excess Payment relates) was paid to the Participant until the date of repayment to the Company. The Participant will use reasonable cooperative efforts at the request of the Company to assist in the determination of the amount of any Excess Payment or Underpayment made to the Participant pursuant to this Plan.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) All Payments are intended by Company and Participant to meet the requirements of Section 409A of the Code. Consistent with the foregoing, all Gross-Up Payments payable pursuant to this Section 6.3 and any other amounts payable to any Participant pursuant to this Plan in respect of taxes shall be paid to the Participant as soon as practicable after the amount of the relevant tax has been determined and, in any event, no later than December 31 of the year immediately following the year in which the Participant remits the relevant taxes.<br>

SECTION 6.4. <u>Certain Terms Applicable to Non-Grandfathered Participants</u>. This Section 6.4 shall apply only to those individuals who are designated as a Participant following the Amendment Date and not to anyone who was a Participant on the Amendment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) In the event it is determined by the Accounting Firm that part or all of any Payment to a Participant is subject to the Excise Tax, the amounts constituting "parachute payments" (within the meaning of Section 280G of the Code) which would otherwise be payable to the Participant or for the Participant's benefit shall be reduced to the maximum amount that would not be subject to the Excise Tax (the "Reduced Amount"); provided that such amounts shall not be so reduced if the Accounting Firm determines that without such reduction, the Participant would be entitled to receive and retain, on a net after-tax basis (including, without limitation, any Excise Tax), an amount which is greater than the amount, on a net after-tax basis, that the Participant would be entitled to retain upon receipt of the Reduced Amount. In connection with making determinations under this Section 6.3(a), the Accounting Firm shall take into account any positions to mitigate any Excise Tax, such as the value of any reasonable compensation for services to be rendered by the Participant before or after the Change in Control.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) An initial determination by the Accounting Firm as to whether an Excise Tax would otherwise be payable and whether a Reduced Amount is applicable is required pursuant to this Plan. The Accounting Firm will provide its Determination, together with detailed supporting calculations and documentation, to the Company and the Participant within five days prior to the Change in Control, or such other time as requested by the Company or by the Participant (provided the Company or the Participant reasonably believes that any of the Payments may be subject to the Excise Tax). Within 10 days of the <br>8 <br>

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delivery of any Determination to the Participant, the Participant will have the right to Dispute. If there is no Dispute, the Determination will be binding, final and conclusive upon the Company and the Participant, subject to the application of Section 6.4(d).<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) If the Determination results in a reduction of the Payments that would otherwise be paid to the Participant, such reduction shall be first applied to reduce any cash Payments that the Participant would otherwise be entitled to receive (whether pursuant to this Plan or otherwise) and shall thereafter be applied to reduce other Payments (including benefits), in each case, in reverse order beginning with the Payments that are to be paid the furthest in time from the date of such Determination, unless, to the extent permitted by Section 409A of the Code, the Participant elects to have the reduction in Payments applied in a different order; provided that, in no event may such Payments be reduced in a manner that would result in subjecting the Participant to additional taxation under Section 409A of the Code. Within ten business days following such Determination (or, if applicable, within ten business days following resolution of any Dispute pursuant to Section 6.4(b)), the Company shall pay or distribute to the Participant or for the Participant's benefit such amounts as are then due to the Participant under this Plan or otherwise and shall promptly pay or distribute to the Participant or for the Participant's benefit in the future such amounts as become due to the Participant under this Plan or otherwise.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a Determination, it is possible that an Excess Payment or Underpayment may occur, in each case, consistent with the calculation of the Reduced Amount (if applicable) hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or the Participant which the Accounting Firm believes has a high probability of success, determines that an Excess Payment has been made, any such Excess Payment paid or distributed by the Company to or for the Participant's benefit shall be repaid by the Participant to the Company together with interest at the applicable federal rate provided for in Section 1274(d) of the Code; provided, however, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which the Participant is subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the Participant's benefit together with interest at the applicable federal rate provided for in Section 1274(d) of the Code. The Participant will use reasonable cooperative efforts at the request of the Company to assist in the determination of the amount of any Excess Payment or Underpayment made to the Participant pursuant to this Plan.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 6.5. <u>Other Benefits Payable</u>. The Severance Benefits provided pursuant to Section 6.2 above shall be provided in addition to, and not in lieu of, all other accrued or vested or earned but deferred compensation, rights, stock options, or other benefits which may be owed to a Participant by an Employer, with the exception of payments to be made under (a) the Chemed Corporation Senior Executive Severance Policy and (b) employment agreements for Tier 1 Participants.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 6.6. <u>Payment Obligations Absolute</u>. The obligations of the Company to pay the Severance Benefits described in Section 6.2 shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense, or other right which the Company or any Affiliate may have against any Participant. In no event shall a Participant be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to a Participant under any of the provisions of this Plan, nor shall the amount of any payment hereunder be reduced by any compensation earned by a Participant as a result of employment by another employer, except with respect to the welfare benefits as provided under Section 6.2(c).<br>

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 **<u>ARTICLE VII <br>SUCCESSOR TO COMPANY</u>**<br>

This Plan shall bind any successor of the Company, its assets, or its businesses (whether direct or indirect, by purchase, merger, consolidation, or otherwise), in the same manner and to the same extent that the Company would be obligated under this Plan if no succession had taken place. In the case of any transaction in which a successor would not, by the foregoing provision or by operation of law, be bound by this Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company's obligations under this Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. The term "Company," as used in this Plan, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by this Plan.

 **<u>ARTICLE VIII <br>AMENDMENT AND TERMINATION</u>**<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 8.1. <u>Amendment and Termination</u>. The Plan may be terminated or amended in any respect by resolution adopted by a majority of the Administrative Committee, unless a Change in Control has previously occurred. However, after the Administrative Committee has knowledge of a transaction or event that, if consummated, would constitute a Change in Control, this Plan may not be terminated or amended in any manner which would adversely affect the rights or potential rights of Participants, unless and until the Administrative Committee has determined that such potential Change in Control has been abandoned and will not be consummated, and the Administrative Committee does not have knowledge of another transaction or event that, if consummated, would constitute a Change in Control. If a Change in Control occurs, the Plan shall no longer be subject to amendment or termination in any respect which adversely affects the rights of Participants.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 8.2. <u>Form of Amendment</u>. The form of any amendment or termination of the Plan shall be a written instrument signed by a duly authorized officer or officers of the Company, certifying that the amendment or termination has been approved by the Administrative Committee. An amendment of the Plan in accordance with the terms hereof shall automatically effect a corresponding amendment to all Participants' rights hereunder. A termination of the Plan, subject to the terms hereof, shall automatically effect a termination of all Participants' rights and benefits hereunder.<br>

 **<u>ARTICLE IX <br>MISCELLANEOUS</u>**<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.1. <u>Legal Fees and Expenses, Arbitration</u>. Each party shall pay their own legal fees incurred in connection with any enforcement of rights under this Plan. Disputes arising under this Plan shall be subject to arbitration according to the rules of the American Arbitration Association. The Company and Participant shall share equally any third party costs of such arbitration.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.2. <u>Employment Status</u>. This Plan does not constitute a contract of employment or impose on a Participant's Employer any obligation to retain the Participant as an Employee, to change the status of the Participant's employment, or to change the Company's policies or those of its Affiliates regarding termination of employment.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.3. <u>Validity and Severability</u>. The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.4. <u>Waiver</u>. The Company's or a Participant's failure to insist upon strict compliance with any provision of this Plan or the failure to assert any right the Company or a Participant may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Plan.<br>

SECTION 9.5. <u>Governing Law</u>. The validity, interpretation, construction, and performance of the Plan shall in all respects be governed by the laws of the State of Ohio, without reference to its principles of conflict of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.6. <u>Claims Procedure</u>. If an Employee or former Employee makes a written request alleging a right to receive benefits under the Plan or alleging a right to receive an adjustment in benefits being paid under the Plan, the Company shall treat it as a claim for benefits. All claims for Severance Benefits under the Plan shall be sent to the Legal Department of the Company and must be received within 30 days after the Date of Termination. If the Company determines that any individual who has claimed a right to receive Severance Benefits under the Plan is not entitled to receive all or any part of the benefits claimed, it will inform the claimant in writing of its determination and the reasons therefor in terms calculated to be understood by the claimant. The notice will be sent within 30 days of the written request, unless the Company determines additional time, not exceeding 45 days, is needed. The notice shall make specific reference to the pertinent Plan provisions on which the denial is based, and describe any additional material or information that is necessary. Such notice shall, in addition, inform the claimant what procedure the claimant should follow to take advantage of the review procedures set forth below in the event the claimant desires to contest the denial of the claim. The claimant may, within 90 days thereafter, submit in writing to the Company a notice that the claimant contests the denial of his or her claim by the Company and desires a further review. The Company shall, within 30 days thereafter, review the claim and authorize the claimant to appear personally and review pertinent documents and submit issues and comments relating to the claim to the persons responsible for making the determination on behalf of the Company. The Company will render its final decision with specific reasons therefor in writing and will transmit it to the claimant within 30 days of the written request for review, unless the Company determines additional time, not exceeding 45 days, is needed, and so notifies the Participant. If the Company fails to respond to a claim filed in accordance with the foregoing within 30 days or any such extended period, the Company shall be deemed to have denied the claim.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.7. <u>Indemnification of Administrative Committee</u>. No member or agent of the Administrative Committee shall be personally liable for any action, determination, or interpretation made with respect to the Plan, and each member of the Administrative Committee shall be indemnified by the Company to the fullest extent permitted by applicable law and the governing instruments of the Company.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.8. <u>Unfunded Plan Status</u>. This Plan is intended to be an unfunded plan. All payments pursuant to the Plan shall be made from the general funds of the Company, and no special or separate fund shall be established or other segregation of assets made to assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company as a result of participating in the Plan. Notwithstanding the foregoing, the Company may (but shall not be obligated to) create one or more grantor trusts, the assets of which are subject to the claims of the Company's creditors, to assist it in accumulating funds to pay its obligations under the Plan.<br>

SECTION 9.9. <u>Tax Withholding</u>. Any payment provided for hereunder shall be paid net of any applicable tax withholding required under federal, state, local, or foreign law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 9.10. <u>Nonalienation of Benefits</u>. Except as otherwise specifically provided herein, amounts payable under the Plan shall not be subject to any manner of anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or <br>11 <br>

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involuntary, including any liability which is for alimony or other payments for the support of a spouse or former spouse, or for any other relative of a Participant, prior to actually being received by the person entitled to payment under the terms of the Plan. Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, garnish, execute, or levy upon, otherwise dispose of any right to amounts payable hereunder, shall be null and void.<br>

SECTION 9.11. <u>Facility of Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) If a Participant is declared an incompetent, and a conservator, guardian, or other person legally charged with his or her care has been appointed, any Severance Benefits to which such Participant is entitled may be paid to such conservator, guardian, or other person legally charged with his or her care;<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) If a Participant is declared an incompetent and a conservator, guardian, or other person charged with his or her care has not been appointed, the Administrative Committee may: (i) require the appointment of a conservator or guardian; (ii) distribute any Severance Benefits to which such Participant is entitled to his or her spouse, with respect to a Participant who is married, or to such other relative of an unmarried Participant for the benefit of such Participant; or (iii) distribute any Severance Benefits to which such Participant is entitled directly to or for the benefit of such Participant.<br>

SECTION 9.12. <u>Gender and Number</u>. Except when the context indicates to the contrary, when used herein masculine terms shall be deemed to include the feminine, and the plural shall be deemed to include the singular.

SECTION 9.13. <u>Headings</u>. The headings of Articles and Sections are included solely for convenience of reference and are not to be used in the interpretation of the provisions of the Plan.

SECTION 9.14. <u>Equity-Based Plans</u>. No provision hereunder is intended to restrict acceleration of any interests granted under equity-based plans of the Company, in accordance with the terms of said plans.

SECTION 9.15. <u>Section 409A Matter</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) The payments and benefits under this Plan are intended to be exempt from, or comply with, Section 409A of the Code, and to the maximum extent permitted this Plan shall be limited, construed and interpreted in accordance with such intent. Except as specifically set forth in Section 6.3 in respect of individuals who were Participants as of the Amendment Date, in no event whatsoever shall the Company or its Affiliates or their respective officers, directors, employees or agents be liable for any additional tax, interest or penalties that may be imposed on a Participant or damages for failing to comply with Section 409A of the Code under this Plan.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Notwithstanding any other provision of this Plan to the contrary, to the extent that any reimbursement of expenses constitutes nonqualified deferred compensation subject to Section 409A of the Code, such reimbursement shall be provided no later than December 31 of the year following the year in which the expense was incurred (or, where applicable, no later than such earlier time required by this Plan). To the extent required by Section 409A of the Code, (i) the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, (ii) the amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year and (iii) any right to such reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. <br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), the right to receive payments in the form of installment payments shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) Notwithstanding any other provision of this Plan to the contrary, if, at the time of a Participant's separation from service (as defined in Section 409A of the Code), the Participant is a "Specified Employee", then the Company will defer the payment or commencement of any nonqualified deferred compensation subject to Section 409A of the Code payable upon separation from service (without any reduction in such payments or benefits ultimately paid or provided to the Participant) until the date that is six months following separation from service or, if earlier, the earliest other date as is permitted under Section 409A of the Code (and any amounts that otherwise would have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six-month period or such shorter period, if applicable).<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) Notwithstanding anything in this Plan or elsewhere to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts or benefits that constitute nonqualified deferred compensation subject to Section 409A of the Code upon or following a termination of the Participant's employment unless such termination is also a "separation from service" within the meaning of Section 409A of the Code and, for purposes of any such provision of this Plan, references to a "termination," "termination of employment" or like terms shall mean "separation from service" and the date of such separation from service shall be the date of termination for purposes of any such payment or benefits.<br>

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Appendix A

Chemed Corporation

**Change in Control Severance Plan**

**Tier 1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; K. J. McNamaraPresident and Chief Executive Officer

**Tier 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M. D. WitzemanEVP, CFO and Controller

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; T. C. HuttonVice President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; L. A. ReinhardVP and Chief Administrative Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G. A. ZarickVice President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. C. Judkins (a)Vice President and Chief Legal Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; H. R. Schmidt (a)Vice President and Asst Controller

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; N. J. McNamara (a)Vice President and Chief Strategy Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J. WherleyVitas President and Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A. Fernandez (a)Vitas Executive VP and Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P. HaleVitas Executive VP and Chief Information Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P. HustedVitas EVP of Patient and Family Supportive Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J. Shega (a)Vitas Executive VP and Chief Medical Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. Stock (a)Vitas Sr VP Strategy & Innovation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. Wysong (a)Vitas Executive VP Operational Performance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S. S. LeeRoto-Rooter Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; R. P. GoldschmidtRoto-Rooter President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M. A. ConnersRoto-Rooter Executive VP - Contractors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S. Ratterman (a)Roto-Rooter CFO

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. Demaline (a) Roto-Rooter Sr. Vice President – Operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S. Bayer (a) Roto-Rooter Vice President – Marketing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J. Payne (a)Roto-Rooter VP – Chief Technology Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Denotes Participant Designation added to the Plan  ***After*** August 3, 2018 Plan Amendment which eliminated gross-up payments for excise taxes for future participants, as approved by the Committee.

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## Exhibit 10.20

#### CHEMED CORPORATION SENIOR EXECUTIVE SEVERANCE POLICY AS AMENDED AUGUST 3 , 201 8
As of December 1, 2006, Chemed Corporation established the Chemed Corporation Senior Executive Severance Policy ("<u>the Policy</u>"). As of August 3, 2018 (the "Amendment Date"), the Company amended the Policy to provide that the tax gross-up provisions in Section 3.1 shall apply only to those individuals who were Participants in the Policy on the Amendment Date and not to anyone designated as a Participant following the Amendment Date.

 **<u>ARTICLE 1 <br>PARTICIPATION</u>**<br>

Participants in the Policy shall consist of those officers designated from time to time on Attachment A to this Policy by the Compensation/Incentive Committee of the Board of Directors, as may be approved by the Board of Directors. The Compensation/Incentive Committee and/or the Board shall have the ability to add or remove Participants at its discretion.

 **<u>ARTICLE 2 <br>TERMINATION OF EMPLOYMENT</u>**<br>

SECTION 2.1. <u>Termination of Employment</u>. The employment of a Participant shall terminate upon the occurrence of any of the following:

(a) The death of the Participant;

(b) The termination of the Participant's employment due to the Participant's disability pursuant to §2.2;

(c) The termination by the Company of the Participant's employment for Cause pursuant to §2.3;

(d) The retirement of the Participant under a retirement plan of the Company; or

(e) The resignation of the Participant.

The termination by the Company of the Participant's employment for any reason other than those specified in this §2.1 shall hereinafter be referred to as a termination "Without Cause".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 2.2. <u>Disability</u>. If, by reason of physical or mental disability, the Participant is unable to carry out his or her duties pursuant to this Policy for four (4) consecutive months, the Participant's may be terminated by the Company upon two (2) months' written notice to be given to the Participant at any time after the period of four (4) continuous months of disability and while such disability continues. If, prior to the expiration of the two (2) months after the giving of such notice, the Participant shall recover from such disability and return to the active discharge of his or her duties, then such notice shall be of no further force and effect and the Participant's employment shall continue as if such disability had not occurred. If the Participant shall not so recover from his or her disability and return to his or her duties, then the Participant's services shall terminate at the expiration date of such two (2) months' notice. In the event a dispute arises between the Participant and the Company concerning the Participant's physical or mental ability to continue or return to the performance of his or her duties as aforesaid, the Participant <br>1 <br>

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shall submit to examination by a competent physician mutually agreeable to both parties, and such physician's opinion as to the Participant's ability to so perform will be final and binding.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 2.3. <u>For Cause</u>. The Company may, at any time by written notice to the Participant, terminate his or her services for Cause. Such notice shall specify the event or events and the actions or failure to act constituting Cause. "<u>Cause</u>" shall mean, with respect to a Participant's termination of employment: (a) the willful and repeated failure of the Participant to perform substantially the Participant's duties with Company (other than any such failure resulting from incapacity due to physical or mental illness); (b) the Participant's conviction of, or plea of guilty or nolo contendere to, which through lapse of time or otherwise is not subject to appeal, a felony which is materially and demonstrably injurious to Company; or (c) the Participant's engagement in willful gross misconduct or gross negligence in connection with his or her employment.<br>

If the basis for discharge is pursuant to paragraph (c) above, the Participant shall have thirty (30) days from receipt of the notice of termination for Cause to cure, if curable, the actions or failure to act specified in such notice and, in the event of any such cure within such period, such conduct shall not constitute Cause hereunder.

SECTION 2.4. <u>Consequences of Termination</u>.

(a) If the Participant's employment shall terminate pursuant to any of the provisions of this Article 2, the Participant's base salary and all incentive compensation shall cease to accrue forthwith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) If the Company shall terminate the Participant's employment Without Cause, the Company shall pay the Participant within 10 days of termination but in no event later than the following March 15 a lump sum amount in cash equal to one and one-half times the Participant's then annual base salary plus a lump sum amount in cash equal to the product of: (i) the average amount of the Participant's annual incentives under the Company's annual incentive plan paid or payable for the last three full fiscal years prior to termination; and (ii) a fraction, the numerator of which is the number of days in the fiscal year through the date of termination and the denominator of which is 365. The Participant shall also be eligible to participate in the Company's welfare benefits plans such as health insurance, life insurance, long-term care insurance, and long-term disability benefits plans for twelve months following termination, at the then current employee contribution rates; provided that if the Participant is precluded from continuing his or her participation in any applicable plan, program, or arrangement, the Participant shall be provided with the after-tax cost of continuation of such coverage, including premiums under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, ("<u>COBRA Premiums</u>"), for the Participant with respect to the benefits provided under such plan, program, or arrangement, paid as a lump sum within 10 days of termination, but in no event later than the following March 15. If the Participant becomes reemployed with another employer and is eligible to receive health insurance, life insurance, long-term care insurance or long-term disability coverage under another employer-provided plan (regardless of whether the Participant elects such coverage), the welfare benefits provided pursuant to this Policy shall be secondary to those provided under such other plan.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) In the event that the Participant's employment shall terminate pursuant to any of the provisions of this Article 2, the rights of the Participant under any incentive compensation plan of the Company, under any executive or employee benefit plans or arrangements, or otherwise shall be determined, subject to this Article 2, in accordance with the terms and provisions of such plans, arrangements and options applicable to an employee whose employment has terminated in the manner that occurred, except that a termination Without Cause shall be treated as a retirement under a retirement plan of the Company for the purposes of the Company stock incentive plans.<br>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) If the Participant's employment shall terminate pursuant to §2.1(a), (b), or (d), the Company shall pay the Participant, during the period from the 183rd to the 190th day following termination, in lieu of any amounts that may be due and payable under the Company's annual incentive plan for the fiscal year of termination a lump sum amount in cash equal to the product of: (i) the average amount of the Participant's annual incentives under the Company's annual incentive plan paid or payable for the last three full fiscal years prior to termination; and (ii) a fraction, the numerator of which is the number of days in the fiscal year through the date of termination and the denominator of which is 365.<br>

(e) If the Participant's employment shall terminate pursuant to §2.1(e) or if the Company shall terminate Participant's employment with Cause pursuant to §2.1(c), Participant's annual incentive bonus shall then be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) Participant shall not be required to offset against amounts due from the Company under this Article 2 for any salary, bonus or other benefits (other than welfare benefits described above) received by the Participant from a third-party, and the Participant shall be under no duty to mitigate by seeking or accepting another position.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) Any amounts paid or benefits received under this Policy are conditioned upon execution of a waiver of liability in favor of the Company executed by the Participant, in the form approved by the Company's counsel.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h) Any amounts paid or benefits received under this Policy are also conditioned, other than a termination under Section 2.1(a), upon execution of the following in a form approved by the Company's counsel: (i) an agreement prohibiting directly or indirectly publishing or disclosing any confidential information of the Company or any of its affiliates, or using such confidential information for the Participant's own use or making it available to others; (ii) a one-year post termination non-compete agreement under which the Participant will not directly or indirectly engage in or become interested in any business providing or arranging for any products or services that directly or indirectly are in competition with the Company or any of its subsidiaries; and (iii) an agreement prohibiting solicitation during such one-year period of the employment of any employees or other personnel providing services to the Company or any of its subsidiaries or soliciting the business of any customer of the Company or any of its subsidiaries.<br>

 **<u>ARTICLE 3 <br>APPLICATION OF SECTION 409A OF THE INTERNAL REVENUE CODE.</u>**<br>

SECTION 3.1. This Section 3.1 shall apply only to those individuals who were Participants in the Policy on the Amendment Date and not to anyone designated as a Participant following the Amendment Date.

In the event that any payment or benefit to the Participant or for the Participant's benefit paid or payable or distributed or distributable under this Policy ("<u>Payment</u>"), would be subject to the excise tax imposed by Section 409A of the Internal Revenue Code ("<u>Code</u>"), or any interest or penalties are incurred by the Participant with respect to such excise tax (collectively, "<u>Excise Tax</u>"), the Participant will be entitled to receive an additional payment ("<u>Gross-Up Payment</u>") in an amount such that after payment by the Participant of all taxes (including any income or payroll tax, interest or penalties imposed with respect to such taxes and the Excise Tax, other than interest and penalties imposed by reason of the Participant's failure to file timely a tax return or pay taxes shown due on the Participant's return, and including any Excise Tax imposed upon the Gross-Up Payment), the Participant retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

------

An initial determination as to whether and in what amount a Gross-Up Payment is required will be made at the Company's expense by an accounting firm of recognized national standing selected by the Company ("<u>Accounting Firm</u>"). The Accounting Firm will provide its determination ("<u>Determination</u>"), together with detailed supporting calculations and documentation, to the Company and the Participant within five days of the date of termination, if applicable, or such other time as requested by the Company or by the Participant (provided the Participant reasonably believes that any of the Payments may be subject to the Excise Tax). If the Accounting Firm determines that no Excise Tax is payable by the Participant with respect to a Payment or Payments, it will furnish the Participant an opinion reasonably acceptable to the Participant that no Excise Tax will be imposed. Within 10 days of the delivery of the Determination, the Participant will have the right to dispute the Determination (the "<u>Dispute</u>"). The Gross-Up Payment, if any, as determined pursuant to this Section will be paid by the Company to the Participant within 5 days of the receipt of the Determination. The existence of the Dispute will not in any way affect the Participant's right to receive the Gross-Up Payment in accordance with the Determination. If there is no Dispute, the Determination will be binding upon the Company and the Participant, subject to the following paragraph.

As a result of uncertainty in the application of Section 409A of the Code, it is possible that a Gross-Up Payment will be paid which should not be paid ("<u>Excess Payment</u>") or that a Gross-Up Payment which should be paid will not be paid ("<u>Underpayment</u>"). An Underpayment will be deemed to have occurred (i) upon notice to the Participant from any governmental taxing authority that the Participant's tax liability (whether in respect of the Participant's current taxable year or in respect of any prior taxable year) may be increased by reason of the imposition of the Excise Tax on a Payment or Payments with respect to which the Company has failed to make a sufficient Gross-Up Payment, (ii) upon a determination by a court, (iii) by reason of a determination by the Company (which will include the position taken by the Company on its federal income tax return) or (iv) upon the resolution of the Dispute to the Participant's satisfaction. If an Underpayment occurs, the Participant will promptly notify the Company and the Company will promptly, but in any event at least 5 days prior to the date on which the applicable government taxing authority has requested payment, pay to the Participant an additional Gross-Up Payment equal to the amount of the Underpayment plus any interest and penalties (other than interest and penalties imposed by reason of the Participant's failure to file timely a tax return or pay taxes shown due on the Participant's return) imposed on the Underpayment.

An Excess Payment will be deemed to have occurred upon a Final Determination (as hereinafter defined) that the Excise Tax will not be imposed upon a Payment or Payments (or portion thereof) with respect to which the Participant had previously received a Gross-Up Payment. A "Final Determination" will be deemed to have occurred when the Participant has received from the applicable government taxing authority a refund of taxes or other reduction in the Participant's tax liability by reason of the Excise Payment and upon either (x) the date a determination is made by, or an agreement is entered into with, the applicable governmental taxing authority which finally binds the Participant and such taxing authority, or if a claim is brought before a court, the date a final determination has been made by such court and either all appeals have been finally resolved or the time for all appeals has expired or (y) the statute of limitations with respect to the Participant's applicable tax return has expired. If an Excess Payment is determined to have been made, the Participant will pay to the Company (but not less than 10 days after the determination of such Excess Payment and written notice has been delivered to the Participant) the amount of the Excess Payment plus interest at an annual rate equal to the Applicable Federal Rate provided for in Section 1274(d) of the Code from the date the Gross-Up Payment was paid until the date of repayment. The Participant will use reasonable cooperative efforts at the request of the Company to assist in the determination of the amount of any Excess Payment or Underpayment made to the Participant pursuant to this Policy.

------

All Gross-Up Payments payable pursuant to this Section 3.1 and any other amounts payable to any Participant pursuant to this Policy in respect of taxes shall be paid to the Participant as soon as practicable after the amount of the relevant tax has been determined and, in any event, no later than December 31 of the year immediately following the year in which the Participant remits the relevant taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION 3.2. The payments and benefits under this Policy are intended to be exempt from, or comply with, Section 409A of the Code, and to the maximum extent permitted this Policy shall be limited, construed and interpreted in accordance with such intent. Except as specifically set forth in Section 3.1 in respect of individuals who were Participants as of the Amendment Date, in no event whatsoever shall the Company or its Affiliates or their respective officers, directors, employees or agents be liable for any additional tax, interest or penalties that may be imposed on a Participant or damages for failing to comply with Section 409A of the Code under this Policy.<br>

Notwithstanding any other provision of this Policy to the contrary, to the extent that any reimbursement of expenses constitutes nonqualified deferred compensation subject to Section 409A of the Code, such reimbursement shall be provided no later than December 31 of the year following the year in which the expense was incurred (or, where applicable, no later than such earlier time required by this Policy). To the extent required by Section 409A of the Code, (i) the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, (ii) the amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year and (iii) any right to such reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), the right to receive payments in the form of installment payments shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment.

Notwithstanding any other provision of this Policy to the contrary, if, at the time of a Participant's separation from service (as defined in Section 409A of the Code), the Participant is a "Specified Employee", then the Company will defer the payment or commencement of any nonqualified deferred compensation subject to Section 409A of the Code payable upon separation from service (without any reduction in such payments or benefits ultimately paid or provided to the Participant) until the date that is six months following separation from service or, if earlier, the earliest other date as is permitted under Section 409A of the Code (and any amounts that otherwise would have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six-month period or such shorter period, if applicable).

Notwithstanding anything in this Policy or elsewhere to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Policy providing for the payment of any amounts or benefits that constitute nonqualified deferred compensation subject to Section 409A of the Code upon or following a termination of the Participant's employment unless such termination is also a "separation from service" within the meaning of Section 409A of the Code and, for purposes of any such provision of this Policy, references to a "termination," "termination of employment" or like terms shall mean "separation from service" and the date of such separation from service shall be the date of termination for purposes of any such payment or benefits.

------

 **<u>ARTICLE 4 <br>LEGAL FEES AND EXPENSES, ARBITRATION.</u>**<br>

Each party shall pay their own legal fees incurred in connection with any enforcement of rights under this Policy. All disputes arising hereunder shall be subject to arbitration according to the rules of the American Arbitration Association. The Company and the Participant shall share equally in any third party costs of such arbitration.

 **<u>ARTICLE 5 <br>GOVERNING LAW.</u>**<br>

This Policy, the rights and obligations hereunder, and any related claims shall be governed by and construed in accordance with the laws of the State of Ohio.

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Attachment A

Chemed Corporation

**Senior Executive Severance Plan**

**Tier 1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; K. J. McNamaraPresident and Chief Executive Officer

**Tier 2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M. D. WitzemanEVP, CFO and Controller

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; T. C. HuttonVice President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; L. A. ReinhardVP and Chief Administrative Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G. A. ZarickVice President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. C. Judkins (a)Vice President and Chief Legal Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; H. R. Schmidt (a)Vice President and Asst Controller

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; N. J. McNamara (a)Vice President and Chief Strategy Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J. WherleyVitas President and Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A. Fernandez (a)Vitas Executive VP and Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P. HaleVitas Executive VP and Chief Information Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; P. HustedVitas EVP of Patient and Family Supportive Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J. Shega (a)Vitas Executive VP and Chief Medical Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. Stock (a)Vitas Sr Vice President Strategy & Innovation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. Wysong (a)Vitas Executive VP Operational Performance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S. S. LeeRoto-Rooter Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; R. P. GoldschmidtRoto-Rooter President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; M. A. ConnersRoto-Rooter Executive VP - Contractors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S. Ratterman (a)Roto-Rooter CFO

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. Demaline (a) Roto-Rooter Sr. Vice President – Operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S. Bayer (a) Roto-Rooter Vice President – Marketing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J. Payne (a) Roto-Rooter VP – Chief Technology Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Denotes Participant Designation added to the Plan  ***After*** August 3, 2018 Plan Amendment which eliminated gross-up payments for excise taxes for future participants, as approved by the Committee.

------

## Exhibit 10.29

**EXHIBIT 10.29**

**Chemed Corporation**

**Form of Stock Option Grant - 2025**

Name

Address

City, State ZIP Code

Dear ,

In accordance with the 2025 Stock Incentive Plan (the "Plan") of Chemed Corporation (the "Corporation"), you are hereby granted an option to purchase ______ shares of the capital stock, par value $1.00 per share, of the Corporation upon the following terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) The purchase price shall be $______ per share. Payment thereof shall be made in cash or, subject to the next sentence, by delivery to the Corporation of shares of capital stock of the Corporation which shall be valued at their Fair Market Value on the date of exercise, or in a combination of cash and such shares. Your right to pay the purchase price, in whole or in part, by delivery to the Corporation of shares of capital stock of the Corporation is expressly subject to temporary or permanent revocation or withdrawal at any time and from time to time by action of the Board of Directors of the Corporation without any requirement that advance notice of such revocation or withdrawal be given to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) Subject to the provisions of paragraphs (3) and (7), this option is exercisable in whole or in part at any time and from time to time as follows:

__________ Shares on or after [Date]

__________ Shares on or after [Date]

__________ Shares on or after [Date]

Once an installment becomes exercisable, it may be exercised at any time in whole or part until the expiration or termination of this option. Neither this option nor any right hereunder may be assigned or transferred by you, except by will, the laws of descent and distribution, pursuant to a qualified Domestic Relations order, or to a permitted transferee. It may be exercised during your life only by you or by a permitted transferee. Within fifteen (15) months after your death it may be exercised only by your estate, by a permitted transferee, or by a person who acquired the right to exercise the option by bequest or inheritance or by reason of your death. At the time of each exercise of this option, you or the person or persons exercising the option shall, if requested by the Corporation, give assurances, satisfactory to counsel to the Corporation, that the shares are being acquired for investment and not with a view to resale or distribution thereof and assurances in respect of such other matters as the Corporation may deem desirable to assure compliance with all applicable legal requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) This option, to the extent that it shall not have been exercised, shall terminate when you cease to be an employee of the Corporation or a subsidiary, unless you cease to be an employee because of your resignation with the consent of the Committee or because of your death, incapacity or retirement under a retirement plan of the Corporation or a subsidiary. If you cease to be an employee because of such resignation, this option shall terminate upon the expiration of three months after you cease to be an employee, except as provided in the next sentence. If you cease to be an employee because of your death, incapacity or retirement under a retirement plan of the Corporation or a subsidiary, or if you cease to be an employee because of your resignation with the consent of the Committee and die during the three-month period referred to in the preceding sentence, this option shall terminate fifteen (15) months after you ceased to be an employee. Where this option is exercised more than three months after termination of employment, as aforesaid, only those installments which shall have become exercisable prior to the expiration of three months after you ceased to be an employee, whether by death or otherwise, may be exercised. A leave of absence for military or governmental service or for other purposes shall not, if approved by the Committee be deemed a termination of employment within the meaning of this paragraph (3), provided, however, that this option may not be exercised during any such leave of absence. Notwithstanding the foregoing provisions of this paragraph (3) or any provision of the Plan, this option shall not be exercisable after the expiration of five years from the date this option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4) Upon the occurrence of a Change in Control (as defined in the Chemed Corporation Change in Control Severance Plan, the "CIC Severance Plan"), the Corporation shall cause the surviving entity to issue replacement

------

**EXHIBIT 10.29**

options or stock appreciation rights in the surviving entity's common stock ("Replacement Award"). Such Replacement Award shall provide you with substantially the same economic value and benefits as provided by this option, including (i) an aggregate purchase price equal to the aggregate purchase price of this option, (ii) an aggregate spread determined immediately after such Change in Control equal to the aggregate spread of this option as determined immediately prior to such Change in Control, and (iii) a ratio of purchase price to the Fair Market Value of the shares subject to such Replacement Award, as determined immediately after the Change in Control, that is equal to the ratio of the purchase price of this option to the Fair Market Value of the Corporation's Capital Stock, as determined immediately prior to the Change in Control. Notwithstanding anything to the contrary contained herein, the substitution of the Replacement Award for this option shall be done in a manner that complies with Section 409A of the Code. To the extent such Replacement Award is not fully exercisable, it shall become exercisable on the date this option would otherwise have become exercisable under the terms of this option, subject to your continued employment with the surviving or successor entity through such date, provided, however, that such Replacement Award will become exercisable immediately if your employment is terminated by the surviving or successor entity without Cause or by you for Good Reason (as defined in the CIC Severance Plan). Such Replacement Award shall become exercisable immediately prior to any transaction with respect to the surviving or successor entity (or parent or subsidiary company thereof) of substantially similar character to a Change in Control. Upon such substitution, this option shall terminate and be of no further force and effect, provided however that if such Replacement Award is not issued for any reason or if the common stock of the surviving entity is not publicly traded on a United States exchange at the date of the Change in Control, then this option shall become exercisable in full upon the occurrence of the Change in Control. By accepting this grant, you explicitly agree that, to the extent there is a conflict between the terms of this Section 4 and the CIC Severance Plan or the Plan, the terms of this Section 4 shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5) The number and class of shares or other securities covered by this option and the price to be paid therefore shall be subject to adjustment as, and under the circumstances, provided in Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6) This option may be exercised only by serving written notice on the President or Secretary of the Corporation. The Corporation shall deliver the shares to you against payment; provided, however, no share shall be issued or transferred pursuant to this option unless and until all legal requirements applicable to the issuance or transfer of such shares have, in the opinion of the counsel to the Corporation, been complied with. Any Federal, state or local withholding taxes applicable to any compensation you may realize by reason of the exercise of the option or any subsequent disposition of the shares acquired on exercise shall, upon request, be remitted to the Corporation or the subsidiary by which you are employed at the time of exercise or sale, as the case may be. You shall have the rights of a stockholder only as to stock actually delivered to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7) If you are or become an employee of a subsidiary, the Corporation's obligations hereunder shall be contingent on the approval of the Plan and this option by the subsidiary and the subsidiary's agreement that (a) the Corporation may administer the Plan on its behalf, and (b) upon the exercise of the option, it will purchase from the Corporation the shares subject to the exercise at their Fair Market Value on the date of exercise, such shares to be then transferred by the subsidiary to the holder of this option upon payment by the holder of the purchase price to the subsidiary. Where appropriate, such approval and agreement of the subsidiary shall be indicated by its signature below. The obligation of the subsidiary so undertaken may be waived by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8) The Plan is hereby incorporated by reference. Each term which is defined in the Plan and used in this option shall have the same meaning in this option as it has in the Plan. This option is granted subject to the Plan and, unless otherwise stated herein, shall be construed to conform to the Plan. The Corporation may cancel, forfeit or recoup any rights or benefits of, or payments to, you hereunder, including but not limited to any Capital Stock issued by the Corporation upon exercise of this option or the proceeds from the sale of any such Capital Stock, under any current or future compensation recovery policy that it may establish and maintain from time to time to meet listing requirements that may be imposed in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise.

Very truly yours,

**CHEMED CORPORATION**

By:_____________________________

Brian C. Judkins

Chief Legal Officer

Receipt Acknowledged:

------

**EXHIBIT 10.29**

______________________

Employee

------

## Ex-21

**<u>EXHIBIT 21</u>**

**SUBSIDIARIES OF CHEMED CORPORATION**

The following is a list of subsidiaries of the Company as of December 31, 2025: Other subsidiaries which have been omitted from the list would not, when considered in the aggregate, constitute a significant subsidiary. Each of the companies is incorporated under the laws of the state following its name. The percentage given for each company represents the percentage of voting securities of such company owned by the Company or, where indicated, subsidiaries of the Company as of December 31, 2025.

All of the majority owned companies listed below are included in the consolidated financial statements as of December 31, 2025.

Chemed RT, Inc. (Delaware, 100%)

Comfort Care Holdings Co. (Nevada, 100%)

Consolidated HVAC, Inc. (Ohio, 100% by Roto-Rooter Services Company)

Jet Resource, Inc. (Delaware, 100%)

Nurotoco of Massachusetts, Inc. (Massachusetts, 100% by Roto-Rooter Services Company)

Nurotoco of Massachusetts, Inc. II (Massachusetts, 100% by Roto-Rooter Services Company)

Nurotoco of Massachusetts, Inc. III (Massachusetts, 100% by Roto-Rooter Services Company)

Nurotoco of New Jersey, Inc. (Delaware, 80% by Roto-Rooter Services Company)

Roto RT, Inc. (Delaware, 100% by Roto-Rooter Group, Inc.)

Roto-Rooter Canada, Ltd. (British Columbia, 100% by Roto-Rooter Services Company)

Roto-Rooter Corporation (Iowa, 100% by Roto-Rooter Group, Inc.)

Roto-Rooter Group, Inc. (Delaware, 100%)

Roto-Rooter Services Company (Iowa, 100% by Roto-Rooter Group, Inc.)

RRSC of Arizona, Inc. (Delaware, 75% owned by Roto-Rooter Services Company)

RR Plumbing Services Corporation (New York, 49% by Roto-Rooter Services Company; included within the consolidated financial statements as a consolidated subsidiary)

VITAS Healthcare Corporation (Delaware, 100% by Comfort Care Holdings Co.)

VITAS Hospice Services, L.L.C. (Delaware, 100% by VITAS Healthcare Corporation)

VITAS Healthcare Corporation of California (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Healthcare Corporation of Illinois (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Healthcare Corporation of Florida (Florida, 100% by VITAS Hospice Services, L.L.C.)

VITAS Healthcare Corporation of Ohio (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Healthcare Corporation of Atlantic (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Healthcare of Texas, L.P. (Texas, 99% by VITAS Holding Corporation, the limited partner, 1% by VITAS Hospice Services, L.L.C., the general partner)

VITAS Healthcare Corporation Midwest (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Healthcare Corporation of Georgia (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS HME Solutions, Inc. (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Holdings Corporation (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS RT, Inc. (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Solutions, Inc. (Delaware, 100% by VITAS Hospice Services, L.L.C.)

VITAS Hospice Management Services, LLC (Delaware, 100% by VITAS Hospice Services, LLC)

------

## Ex-23

**EXHIBIT 23**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-205669, 333-225130, 333-264979 and 333-287421) of Chemed Corporation of our report dated February 27, 2026 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in the 2025 Annual Report to Shareholders, which is incorporated by reference in this Annual Report on Form 10-K.

/s/ PricewaterhouseCoopers LLP

Cincinnati, Ohio

February 27, 2026

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## Ex-24

**EXHIBIT 24**

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 11, 2026

---

| |
|:---|
| /s/ Eileen P. McCarthy |
| Eileen P. McCarthy |

---

------

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 13, 2026

---

| |
|:---|
| <u>/s/ Patrick P. Grace</u> |
| Patrick P. Grace |

---

------

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 10, 2026

---

| |
|:---|
| <u>/s/ Thomas C. Hutton</u> |
| Thomas C. Hutton |

---

------

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 13, 2026

---

| |
|:---|
| /s/ John M. Mount Jr. |
| John M Mount Jr. |

---

------

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 12, 2026

---

| |
|:---|
| <u>/s/ George J. Walsh III</u> |
| George J. Walsh III |

---

------

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 13, 2026

---

| |
|:---|
| /s/ Christopher J. Heaney |
| Christopher J. Heaney |

---

------

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 9, 2026

---

| |
|:---|
| /s/ Ron DeLyons |
| Ron DeLyons |

---

------

**<u>POWER OF ATTORNEY</u>**

The undersigned director of CHEMED CORPORATION ("Company") hereby appoints KEVIN J. MCNAMARA and BRIAN C. JUDKINS as his true and lawful attorneys-in-fact for the purpose of signing the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and all amendments thereto, to be filed with the Securities and Exchange Commission. Each of such attorneys-in-fact is appointed with full power to act without the other.

Dated: February 12, 2026

---

| |
|:---|
| <u>/s/ Andrea R. Lindell</u> |
| Andrea R. Lindell |

---

------

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION PURSUANT TO RULES 13a-14(a)/15d-14(a) OF THE EXCHANGE ACT OF 1934**

I, Kevin J. McNamara, certify that:

1. I have reviewed this annual report on Form 10-K of Chemed Corporation ("registrant");

2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations, and cash flow of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a) Designed such disclosure controls and procedures, or caused such disclosure controls or procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by other within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors or persons performing the equivalent function:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: February 27, 2026

---

| |
|:---|
| <u>/s/ Kevin J. McNamara</u> |
| Kevin J. McNamara |
| (President and Chief Executive Officer) |

---

------

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION PURSUANT TO RULES 13a-14(a)/15d-14(a) OF THE EXCHANGE ACT OF 1934**

I, Michael D. Witzeman, certify that:

1. I have reviewed this annual report on Form 10-K of Chemed Corporation ("registrant");

2. Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations, and cash flow of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a) Designed such disclosure controls and procedures, or caused such disclosure controls or procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by other within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors or persons performing the equivalent function:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: February 27, 2026

---

| |
|:---|
| /s/ Michael D. Witzeman |
| Michael D. Witzeman |
| (Executive Vice President, Chief Financial Officer and Controller) |

---

------

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION BY KEVIN J. MCNAMARA**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, as President and Chief Executive Officer of Chemed Corporation ("Company"), does hereby certify that:

1) The Company's Annual Report on Form 10-K for the year ending December 31, 2025 ("Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 27, 2026

---

| |
|:---|
| <u>/s/ Kevin J. McNamara</u> |
| Kevin J. McNamara |
| (President and Chief Executive Officer) |

---

------

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION MICHAEL D. WITZEMAN**

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, as Executive Vice President, Chief Financial Officer and Controller of Chemed Corporation ("Company"), does hereby certify that:

1) The Company's Annual Report on Form 10-K for the year ending December 31, 2025 ("Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: February 27, 2026

---

| | |
|:---|:---|
| ih |  |
|  | /s/ Michael D. Witzeman |
|  | Michael D. Witzeman |
|  | (Executive Vice President, Chief Financial Officer and Controller) |

---

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## Ex-97

**EXHIBIT 97**

**Incentive Compensation Recovery Policy**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **PURPOSE** 

This Incentive Compensation Recovery Policy (this "<u>Recovery Policy</u>") is adopted by Chemed Corporation, a Delaware corporation (the "<u>Company</u>"), as of the 3rd day of November, 2023 (the "<u>Effective Date</u>") as required by Section 10D of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"), Rule 10D-1 under the Exchange Act and the applicable New York Stock Exchange Listing Standards (collectively, the "<u>Recovery Rules</u>"). This Recovery Policy is intended to apply independent of all other clawback, recoupment or forfeiture policies, agreements or other arrangements of the Company (collectively, "<u>Other Clawback Policies</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **ADMINISTRATION** 

This Recovery Policy shall be administered by the Compensation Committee of the Board of Directors (the "<u>Board</u>") of the Company (the "<u>Compensation Committee</u>"). The Compensation Committee shall have the full power and authority to interpret, and make determinations under, this Recovery Policy, consistent with the Recovery Rules. All determinations and decisions made by the Compensation Committee pursuant to this Recovery Policy shall be final, conclusive and binding on all persons, including each member of the Company Group (as defined below), its respective affiliates, stockholders and employees. In the absence of the Compensation Committee, a majority of the independent directors serving on the Board shall administer this Recovery Policy as set forth in this paragraph.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **COVERED INDIVIDUALS** 

Each Executive Officer (as defined below) shall be subject to this Recovery Policy and should execute an Acknowledgment in the form attached as <u>Exhibit A</u> hereto. Failure by an Executive Officer to execute an Acknowledgment shall have no impact on the applicability or enforceability of this Recovery Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **RECOVERY OF EXCESS INCENTIVE COMPENSATION** 

------

In the event the Company is required to prepare a Covered Financial Restatement (as defined below), the Company shall seek reasonably promptly the recovery of any Excess Incentive Compensation (as defined below) received by a Specified Officer during the three completed fiscal years immediately preceding the applicable Triggering Date (as defined below) (or any transition period that results from a change in the Company's fiscal year within or immediately following such three completed fiscal years); <u>provided</u>, <u>however</u>, that a transition period between the last day of the Company's previous fiscal year-end and the first day of its new fiscal year that comprises a period of nine to twelve months will be considered a completed fiscal year for purposes of this Recovery Policy. The Company's obligation to recover Excess Incentive Compensation from a Specified Officer is not dependent on if, or when, the applicable restated financial statements are filed. Unless otherwise specified by the Compensation Committee, a Specified Officer shall be required to forfeit or repay the Excess Incentive Compensation within ninety (90) days following the date such Specified Officer is informed that such Specified Officer has received Excess Incentive Compensation from the Company Group.

------

Subject to the Recovery Rules, the Compensation Committee shall have discretion to determine the method by which Excess Incentive Compensation shall be recovered from the applicable Specified Officers. For the avoidance of doubt, any Excess Incentive Compensation received by a Specified Officer that has subsequently been forfeited prior to payment thereof (including as a result of termination of employment or breach of contract) shall be deemed to have been repaid in accordance with this Recovery Policy. To the extent that the application of this Recovery Policy would provide for recovery of Incentive Compensation that the Company recovers pursuant to Section 304 of the Sarbanes-Oxley Act or Other Clawback Policies, the amount the relevant Specified Officer has already reimbursed the Company will be credited to the required recovery under this Recovery Policy. To the extent a Specified Officer fails to repay any Excess Incentive Compensation in accordance with the immediately-preceding sentence, such Specified Officer shall be required to reimburse the Company Group for any and all expenses reasonably incurred (including legal fees) by any member of the Company Group in recovering such Excess Incentive Compensation.

------

The Company must recover Excess Incentive Compensation pursuant to this Recovery Policy except to the extent the conditions of (i), (ii) or (iii) of this sentence are satisfied, including the Company's compliance with any additional requirements set forth in the applicable Recovery Rules related thereto, and the Compensation Committee has made a determination that recovery would be impracticable: (i) the direct expense paid to a third party to assist in enforcing the Policy would exceed the amount to be recovered; (ii) recovery would violate home country law where the applicable law was adopted prior to November 28, 2022; or (iii) recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to employees of the Company, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and regulations thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **GOVERNING LAW** 

This Recovery Policy shall be governed by and construed in accordance with the laws of the State of Delaware without regard to conflicts of law thereof or of any other jurisdiction. Except as provided above, the parties shall each bear their own expenses in connection with any dispute under or relating to this Recovery Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **F.MISCELLANEOUS PROVISIONS**

This Recovery Policy shall only apply to Incentive Compensation received on or after October 2, 2023. The Board may amend this Recovery Policy from time to time in its sole and absolute discretion. This Recovery Policy will not limit the rights of the Company to take any other actions or pursue other remedies that the Company may deem appropriate under the circumstances and under applicable law. This Recovery Policy will be binding and enforceable against all Specified Officers and their beneficiaries, heirs, executors, administrators or other legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **G.DEFINITIONS**

"<u>Company Group</u>" shall mean the Company, collectively with each of its direct and indirect subsidiaries.

"<u>Covered Financial Restatement</u>" means an accounting restatement required due to material noncompliance by a member of the Company Group with any financial reporting requirements under the federal securities laws, including any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period. The following shall not constitute a Covered Financial Restatement: (i) out-of-period adjustments; (ii) retrospective application of a change in accounting principle; (iii) retrospective revision to reportable segment information due to a change in the structure of the internal organization of the Company Group; (iv) retrospective reclassification due to a discontinued operation; (v) retrospective application of a change in reporting entity, such as from a reorganization of entities under common control; and (vi) retrospective revision for stock splits, reverse stock splits, stock dividends or other change in capital structure.

"<u>Excess Incentive Compensation</u>" means the amount of Incentive Compensation received by a Specified Officer from any member of the Company Group in excess of the amount that would have been received had it been determined based on the restated amounts, as determined by the Compensation Committee in accordance with the Recovery Rules. The amount of Excess Incentive Compensation shall be determined on a gross basis without regard to any taxes owed or paid by the Specified Officer on the receipt or settlement of the Incentive Compensation. For Incentive Compensation based on stock price or total shareholder return, where the amount of Excess Incentive Compensation is not subject to mathematical recalculation directly from the information in an accounting restatement, the amount will be based on a reasonable estimate of the effect of the accounting restatement on the stock price or total shareholder return upon which the Incentive Compensation was received. For the avoidance of doubt, Excess Incentive Compensation may include Incentive Compensation received by a person after such person ceases to be an Executive Officer.

"<u>Executive Officer</u>" shall mean an "executive officer" of the Company (as defined in Rule 10D-1(d) under the Exchange Act) and as identified by the Compensation Committee in accordance with the Recovery Rules.

"<u>Financial Reporting Measures</u>" means measures that are determined in accordance with the accounting principles used in preparing the Company Group's financial statements, and any measures that are derived in whole or in part from such measures. Stock price, adjusted earnings per share and total shareholder return are also Financial Reporting Measures. A Financial Reporting Measure need not be presented within the financial statements or included in a filing with the Securities and Exchange Commission.

"<u>Incentive Compensation</u>" means any compensation that is granted, earned or becomes vested, in whole or in part, upon the attainment of a Financial Reporting Measure and as identified by the Compensation Committee in accordance with the Recovery Rules. For the avoidance of doubt, Incentive Compensation shall include compensation that is computed based on, or otherwise attributable to, the attainment of a Financial Reporting Measure. Except as otherwise determined by the Compensation Committee, Incentive Compensation shall not include the following: (i) salaries; (ii) amounts received solely at the discretion of the Compensation Committee or the Board and that are not received from a pool that is determined by satisfying a Financial Reporting Measure performance goal; (iii) amounts received solely upon satisfying one or more subjective standards; (iv) amounts received solely upon satisfying one or more strategic measures or operational measures; and (v) amounts received solely based on service or the passage of time.

Incentive Compensation shall be considered to be "<u>received</u>" by a Specified Officer in the Company's fiscal period during which the Financial Reporting Measure specified in the Incentive Compensation is achieved or attained, even if the payment or grant of the Incentive Compensation occurs after the end of that fiscal period.

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"<u>Specified</u> <u>Officer</u>" means an Executive Officer who received Excess Incentive Compensation on or after the date he or she became an Executive Officer of the Company. For the avoidance of doubt, Specified Officers include former employees of the Company Group if they otherwise satisfy the definition of Specified Officer.

"<u>Triggering Date</u>" means the earlier to occur of (i) the date the Board, a committee of the Board, or the officer or officers of the Company authorized to take such action if Board action is not required, concludes, or reasonably should have concluded, that the Company is required to prepare a Covered Financial Restatement or (ii) the date a court of competent jurisdiction, regulator, or other legally authorized body directs the Company to prepare a Covered Financial Restatement; <u>provided</u>, that the recovery of Excess Incentive Compensation pursuant to this Recovery Policy as a result of this clause (ii) shall only be required if such action by such court, regulator or other legally authorized body, as applicable, is final and non-appealable.

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**<u>Exhibit A</u>**

**Acknowledgment**

This Acknowledgment (this "<u>Acknowledgment</u>") to the Incentive Compensation Policy (the "<u>Recover</u><u>y</u> <u>Policy</u>") of Chemed Corporation (the "<u>Company</u>") is executed by the undersigned Executive Officer. Capital terms used but not defined in this Acknowledgment shall have the meanings assigned to such terms in the Recovery Policy.

By signing below, the undersigned:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. a cknowledges and confirms that the undersigned has received and reviewed a copy of the Recovery Policy and that the undersigned is, and the undersigned's beneficiaries, heirs, executors, administrators or other legal representatives, as applicable, are, subject to the Recovery Policy ;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. a cknowledges and agrees that the undersigned will comply with the Recovery Policy, including, without limitation, by returning Excess Incentive Compensation pursuant to, and in accordance with, the Recovery Policy and applicable law , and that the undersigned remains subject to the Recover y Policy during and after the undersigned's employment or engagement with the Company Group ; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. a cknowledges that the Recovery Policy may be amended from time to tim e in accordance with the terms thereof and the undersigned shall remain subject to the Recover Policy, as so amended , in all respects.

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Signature

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Print Name

__________________________

Date

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