0001562762-23-000183 | 10-Q | XBRL Viewer

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Document And Entity Information	3 Months Ended
Document And Entity Information	Mar. 31, 2023 shares
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Fiscal Period Focus	Q1
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	1-8351
Entity Registrant Name	CHEMED CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-0791746
Entity Address, Address Line One	255 E. Fifth Street
Entity Address, Address Line Two	Suite 2600
Entity Address, City or Town	Cincinnati
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45202
City Area Code	513
Local Phone Number	762-6690
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Capital Stock $1 Par Value
Trading Symbol	CHE
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding	15,019,778
Amendment Flag	false
Entity Central Index Key	0000019584
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 58,054	$ 74,126
Accounts receivable	153,816	139,408
Inventories	10,663	10,272
Prepaid income taxes	10,633	18,515
Prepaid expenses	29,055	30,291
Total current assets	262,221	272,612
Investments of deferred compensation plans	97,436	93,196
Properties and equipment, at cost, less accumulated depreciation of $338,416 (2022- $335,920)	204,164	199,714
Lease right of use asset	131,219	135,662
Identifiable intangible assets less accumulated amortization of $70,229 (2022 - $67,716)	97,348	99,726
Goodwill	581,286	581,295
Other assets	57,511	59,807
Total Assets	1,431,185	1,442,012
Current liabilities
Accounts payable	40,279	41,884
Current portion of long-term debt	5,000	5,000
Income taxes	11,223
Accrued insurance	63,150	58,515
Accrued compensation	50,152	87,350
Accrued legal	6,061	4,456
Short-term lease liability	38,291	38,996
Other current liabilities	69,304	61,004
Total current liabilities	283,460	297,205
Deferred income taxes	35,418	38,613
Long-term debt	16,250	92,500
Deferred compensation liabilities	97,285	92,330
Long-term lease liability	106,212	110,513
Other liabilities	12,507	12,136
Total Liabilities	551,132	643,297
Commitments and contingencies (Note 10)
STOCKHOLDERS' EQUITY
Capital stock - authorized 80,000,000 shares $1 par; issued 36,884,382 shares (2022 - 36,795,792 shares)	36,884	36,796
Paid-in capital	1,186,119	1,149,899
Retained earnings	2,246,354	2,197,918
Treasury stock - 21,927,705 shares (2022 - 21,920,993 shares)	(2,591,588)	(2,588,145)
Deferred compensation payable in Company stock	2,284	2,247
Total Stockholders' Equity	880,053	798,715
Total Liabilities and Stockholders' Equity	$ 1,431,185	$ 1,442,012

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Consolidated Balance Sheets [Abstract]
Properties and equipment, at cost, accumulated depreciation	$ 338,416	$ 335,920
Identifiable intangible assets, accumulated amortization	$ 70,229	$ 67,716
Capital stock - authorized	80,000,000	80,000,000
Capital stock - par value	$ 1	$ 1
Capital stock - issued	36,884,382	36,795,792
Treasury stock	21,927,705	21,920,993

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Consolidated Statements Of Income [Abstract]
Service revenues and sales	$ 560,157	$ 530,549
Cost of services provided and goods sold (excluding depreciation)	370,705	336,552
Selling, general and administrative expenses	100,095	89,954
Depreciation	12,286	12,138
Amortization	2,513	2,518
Other operating expense	1,739	13
Total costs and expenses	487,338	441,175
Income from operations	72,819	89,374
Interest expense	(1,551)	(810)
Other expense - net	(103)	(3,862)
Income before income taxes	71,165	84,702
Income taxes	(17,044)	(20,533)
Net income	$ 54,121	$ 64,169
Earnings Per Share:
Net income	$ 3.62	$ 4.28
Average number of shares outstanding	14,966	14,986
Diluted Earnings Per Share:
Net income	$ 3.58	$ 4.22
Average number of shares outstanding	15,110	15,192
Cash Dividends Per Share	$ 0.38	$ 0.36

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities
Net income	$ 54,121	$ 64,169
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,799	14,656
Stock option expense	8,482	7,451
Benefit for deferred income taxes	(3,195)	(4,047)
Noncash long-term incentive compensation	2,024	1,185
Amortization of debt issuance costs	95	76
Changes in operating assets and liabilities:
(Increase)/decrease in accounts receivable	(14,318)	19,610
Increase in inventories	(391)	(431)
Decrease in prepaid expenses	1,236	3,099
Decrease in accounts payable and other current liabilities	(24,109)	(30,332)
Change in current income taxes	19,118	23,530
Net change in lease assets and liabilities	(632)	743
Increase in other assets	(2,173)	(1,562)
Increase in other liabilities	5,313	2,958
Other sources/(uses)	122	(15)
Net cash provided by operating activities	60,492	101,090
Cash Flows from Investing Activities
Capital expenditures	(17,020)	(12,649)
Proceeds from sale of fixed assets	146	485
Business combinations, net of cash acquired		(1,650)
Other uses	(139)	(134)
Net cash used by investing activities	(17,013)	(13,948)
Cash Flows from Financing Activities
Payments on long-term debt	(76,250)
Proceeds from exercise of stock options	25,680	7,692
Dividends paid	(5,685)	(5,322)
Capital stock surrendered to pay taxes on stock-based compensation	(3,166)	(4,893)
Payments on revolving line of credit		(86,500)
Purchases of treasury stock		(27,794)
Proceeds from revolving line of credit		21,500
Change in cash overdraft payable		(7,051)
Other (uses)/sources	(130)	491
Net cash used by financing activities	(59,551)	(101,877)
Decrease in Cash and Cash Equivalents	(16,072)	(14,735)
Cash and cash equivalents at beginning of period	74,126	32,895
Cash and cash equivalents at end of period	$ 58,054	$ 18,160

Consolidated Statements Of Changes In Stockholders Equity - USD ($) $ in Thousands	Capital Stock [Member]	Paid-In Capital [Member]	Retained Earnings [Member]	Treasury Stock-At Cost [Member]	Deferred Compensation Payable In Company Stock [Member]	Total
Balance at Dec. 31, 2021	$ 36,514	$ 1,044,341	$ 1,970,311	$ (2,430,094)	$ 2,201	$ 623,273
Net income			64,169			64,169
Dividends paid			(5,322)			(5,322)
Stock awards and exercise of stock options	65	19,603		(8,233)		11,435
Purchases of treasury stock				(27,353)		(27,353)
Other		504		(36)	35	503
Balance at Mar. 31, 2022	36,579	1,064,448	2,029,158	(2,465,716)	2,236	666,705
Balance at Dec. 31, 2022	36,796	1,149,899	2,197,918	(2,588,145)	2,247	798,715
Net income			54,121			54,121
Dividends paid			(5,685)			(5,685)
Stock awards and exercise of stock options	88	36,338		(3,406)		33,020
Other		(118)		(37)	37	(118)
Balance at Mar. 31, 2023	$ 36,884	$ 1,186,119	$ 2,246,354	$ (2,591,588)	$ 2,284	$ 880,053

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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Consolidated Statements Of Changes In Stockholders Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Consolidated Statements Of Changes In Stockholders Equity [Abstract]
Dividends paid per share	$ 0.38	$ 0.36

Basis Of Presentation

3 Months Ended

Mar. 31, 2023

Basis Of Presentation [Abstract]

Basis Of Presentation

1. Basis of Presentation

As used herein, the terms “We,” “Company” and “Chemed” refer to Chemed Corporation or Chemed Corporation and its consolidated subsidiaries.

We have prepared the accompanying unaudited consolidated financial statements of Chemed in accordance with Rule 10-01 of SEC Regulation S-X. Consequently, we have omitted certain disclosures required under generally accepted accounting principles in the United States (“GAAP”) for complete financial statements. The December 31, 2022 balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, in our opinion, the financial statements presented herein contain all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any other future period, and we make no representations related thereto. These financial statements are prepared on the same basis as and should be read in conjunction with the audited Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December 31, 2022.

CLOUD COMPUTING

As of March 31, 2023, Roto-Rooter has no significant capitalized implementation costs related to cloud computing.

VITAS utilizes a human resources system that is considered a cloud computing arrangement. We have capitalized approximately $5.6 million related to implementation of this project which is included in prepaid assets in the accompanying balance sheets. The VITAS human resource system was placed into service in January 2020 and is being amortized over 5.7 years. For the three months ended March 31, 2023 and 2022, $249,000 has been amortized, respectively.

INCOME TAXES

Our effective income tax rate was 23.9% in the first quarter of 2023 compared to 24.2% during the first quarter of 2022. Excess tax benefit on stock options exercised reduced our income tax expenses by $1.7 million and $1.4 million, respectively for the quarters ended March 31, 2023 and 2022.

NON-CASH TRANSACTIONS

Included in the accompanying Consolidated Balance Sheets are $1.7 million and $1.9 million of capitalized property and equipment which were not paid for as of March 31, 2023 and December 31, 2022, respectively. Accrued property and equipment purchases have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flow. There are no material non-cash amounts included in interest expense for any period presented.

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 17 for discussion of recent acquisitions.

Quarterly amortization of intangible assets is mainly driven by two Roto-Rooter franchise acquisitions completed in 2019. The total purchase price of these acquisitions was $138.0 million. As part of the purchase price allocation, approximately $59.2 million was determined to be the value of reacquired franchise rights which are being amortized over the remaining life of each franchise agreement. The average remaining life on the reacquired franchise agreements was approximately seven years. Quarterly amortization of reacquired franchise rights for these two acquisitions is approximately $2.0 million ($8.1 million annualized through 2026). This contrasts to quarterly franchise fees historically collected from these two franchisees of approximately $470,000 ($1.9 million annualized).

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. Disclosures of after-tax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments.

Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue Recognition [Abstract]

Revenue Recognition

2. 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 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”).

VITAS

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 include 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 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 was $2.0 million for the quarters ended March 31, 2023 and 2022. The cost of charity care is included in cost of services provided and goods sold and is calculated by taking the ratio of charity care days to total days of care and multiplying by the 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. Medicare and Medicaid programs have broad authority to audit and review compliance with such laws and regulations, and impose payment suspensions when merited. 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 three months ended March 31, 2023 and 2022.

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 March 31, 2023, 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 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.

In 2013, the U.S. government implemented automatic budget reductions of 2.0% for all government payees, including hospice benefits paid under the Medicare program. In 2015, Centers for Medicare and Medicaid Services (“CMS”) determined that the Medicare cap should be calculated “as if” sequestration did not occur. As a result of this decision, VITAS had received notification from our third-party intermediary that an additional $9.0 million was owed for Medicare cap in three programs for the 2013 through 2022 measurement periods. The amounts were automatically deducted from our semi-monthly PIP payments and we did not recognize any revenue for these disputed amounts, but recorded a receivable offset by a reserve of equal amount. Due to recent court decisions, we are no longer appealing the CMS’s methodology change. During the year ended December 31, 2022, we reversed the related receivable and reserve. There was no impact on the consolidated balance sheets or the consolidated statements of income as of and for the year ended December 31, 2022.

During the quarter ended March 31, 2023, we recorded $2.8 million in net Medicare cap revenue reduction related to three programs for the 2023 government fiscal year.

During the quarter ended March 31, 2022, we recorded $2.5 million in net Medicare cap revenue reduction related to two programs for the 2022 government fiscal year.

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 quarter ended March 31, 2023 is as follows (in thousands):



	Medicare		Medicaid		Commercial		Total
Routine home care	$	250,916	$	10,568	$	5,566	$	267,050
Continuous care		18,508		650		783		19,941
Inpatient care		25,519		2,432		1,142		29,093
	$	294,943	$	13,650	$	7,491	$	316,084

All other revenue - self-pay, respite care, etc.								3,021
Subtotal							$	319,105
Medicare cap adjustment								(2,750)
Implicit price concessions								(3,108)
Room and board, net								(2,769)
Net revenue							$	310,478

‎

The composition of patient care service revenue by payor and level of care for the quarter ended March 31, 2022 is as follows (in thousands):


	Medicare		Medicaid		Commercial		Total
Routine home care	$	241,337	$	10,907	$	5,392	$	257,636
Continuous care		17,977		814		787		19,578
Inpatient care		23,427		1,963		1,180		26,570
	$	282,741	$	13,684	$	7,359	$	303,784

All other revenue - self-pay, respite care, etc.								3,007
Subtotal							$	306,791
Medicare cap adjustment								(2,500)
Implicit price concessions								(2,985)
Room and board, net								(2,117)
Net revenue							$	299,189

Roto-Rooter

Roto-Rooter provides plumbing, drain cleaning, excavation, 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 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 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. Each such 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. 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 first quarter is as follows (in thousands):


	March 31,
	2023		2022
Drain cleaning	$	66,489	$	66,687
Plumbing		50,453		47,672
Excavation		59,576		55,188
Other		193		165
Subtotal - short term core		176,711		169,712
Water restoration		50,762		40,360
Independent contractors		23,300		21,418
Franchisee fees		1,351		1,317
Other		4,745		4,191
Gross revenue		256,869		236,998
Implicit price concessions and credit memos		(7,190)		(5,638)
Net revenue	$	249,679	$	231,360

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Segments

3 Months Ended

Mar. 31, 2023

Segments [Abstract]

Segments

‎

3. Segments

Service revenues and sales by business segment are shown in Note 2. After-tax income/(loss) by business segment are as follows (in thousands):



	Three months ended March 31,
	2023		2022
VITAS	$	24,764	$	36,481
Roto-Rooter		47,653		43,937
Total		72,417		80,418
Corporate		(18,296)		(16,249)
Net income	$	54,121	$	64,169

We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings per Share

Earnings per share (“EPS”) are computed using the weighted average number of shares of capital stock outstanding. Earnings and diluted earnings per share are computed as follows (in thousands, except per share data):


			Net Income
For the Three Months Ended March 31,		Income		Shares	Earnings per Share
2023
	Earnings	$	54,121	14,966	$	3.62
	Dilutive stock options		-	94
	Nonvested stock awards		-	50
	Diluted earnings	$	54,121	15,110	$	3.58

2022
	Earnings	$	64,169	14,986	$	4.28
	Dilutive stock options		-	165
	Nonvested stock awards		-	41
	Diluted earnings	$	64,169	15,192	$	4.22

For the three months ended March 31, 2023, there were 326,000 stock options excluded from the computation of dilutive earnings per share because they would have been anti-dilutive.

For the three months ended March 31, 2022, there were 609,000 stock options excluded from the computation of dilutive earnings per share because they would have been anti-dilutive.

Long-Term Debt And Lines Of Credit

3 Months Ended

Mar. 31, 2023

Long-Term Debt And Lines Of Credit [Abstract]

Long-Term Debt And Lines Of Credit

5. 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 $450.0 million revolver as well as a five-year $100.0 million term loan. Principal payments of $1.25 million on the term loan are due on the last day of each fiscal quarter, with a final payment due at the end of the agreement. 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 March 31, 2023, 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.

We made prepayments totaling $75.0 million in the first quarter of 2023, on the $100.0 million term loan. We plan to pay the remaining balance of $21.3 million on April 28, 2023. There are no prepayment penalties associated with this repayment. There are no significant deferred debt issuance costs capitalized related to the term loan. This will reduce the borrowing capacity of the 2022 Credit Facilities from $550.0 million to $450.0 million.

‎

The debt outstanding as of March 31, 2023 consists of the following:



Revolver	$	-
Term loan		21,250
Total		21,250
Current portion of long-term debt		(5,000)
Long-term debt	$	16,250

Debt issuance costs associated with the prior credit agreement were not written off as the lenders did not change and their relative percentage participation in the facility was substantially the same. Deferred financing cost of $1.5 million for the 2022 Credit Facilities were capitalized during the quarter ended June 30, 2022.

Scheduled payments of the 2022 Credit Facilities are as follows:



2023	$	3,750
2024		5,000
2025		5,000
2026		5,000
2027		2,500
	$	21,250

The 2022 Credit Facilities contain the following quarterly financial covenants effective as of March 31, 2023:



Description		Requirement

Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)		< 3.50 to 1.00

Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)		> 3.00 to 1.00

We are in compliance with all debt covenants as of March 31, 2023. We have issued $45.3 million in standby letters of credit as of March 31, 2023, mainly for insurance purposes. Issued letters of credit reduce our available credit under the 2022 Credit Facilities. As of March 31, 2023, we have approximately $404.7 million of unused lines of credit available and eligible to be drawn down under revolving credit facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Other Expense – Net

3 Months Ended

Mar. 31, 2023

Other Expense – Net [Abstract]

Other Expense – Net

6. Other Expense – Net

Other expense – net comprises the following (in thousands):



	Three months ended March 31,
	2023		2022
Market value adjustment on assets held in
deferred compensation trust	$	(321)	$	(3,934)
Interest income		150		73
Other-net		68		(1)
Total other (expense)/income - net	$	(103)	$	(3,862)

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

7. 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. Our leases have remaining terms of under 1 year to 10 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.

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.

We do not currently have any finance leases, therefore all lease information disclosed is related to operating leases.

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


	March 31,		‎December 31,
	2023		2022
Assets
Operating lease assets	$	131,219	$	135,662

Liabilities
Current operating leases		38,291		38,996
Noncurrent operating leases		106,212		110,513
Total operating lease liabilities	$	144,503	$	149,509

The components of lease expense for the first quarter are as follows (in thousands):


	Three months ended March 31,
	2023		2022
Lease Expense (a)
Operating lease expense	$	14,906	$	14,903
Sublease income		(23)		(45)
Net lease expense	$	14,883	$	14,858

(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:


	Three months ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	12,668	$	12,489

Leased assets obtained in exchange for new operating lease liabilities	$	6,845	$	20,453


Weighted Average Remaining Lease Term at March 31, 2023
Operating leases	4.58	years


Weighted Average Discount Rate at March 31, 2023
Operating leases	2.64	%

‎


Maturity of Operating Lease Liabilities (in thousands)

2023	$	34,439
2024		37,667
2025		30,078
2026		23,143
2027		12,607
Thereafter		16,065
Total lease payments	$	153,999
Less: interest		(9,496)
Total liability recognized on the balance sheet	$	144,503

For leases commencing prior to April 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $2.7 million related to extended lease terms that are reasonably certain of being exercised and exclude $144,000 of lease payments for leases signed but not yet commenced.

Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2023

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

8. Stock-Based Compensation Plans

On February 17, 2023, the Compensation/Incentive Committee of the Board of Directors (“CIC”) granted 6,078 Performance Stock Units (“PSUs”) that vest contingent upon the achievement of certain total shareholder return (“TSR”) targets as compared to the TSR of a group of peer companies for the three-year period ending December 31, 2025, the date at which such awards vest. The cumulative compensation cost of the TSR-based PSU award to be recorded over the three-year service period is $5.1 million.

On February 17, 2023, the CIC also granted 6,078 PSUs that vest contingent upon the achievement of certain earnings per share (“EPS”) targets for the three-year period ending December 31, 2025. At the end of each reporting period, the Company estimates the number of shares that it believes will ultimately be earned and records the corresponding expense over the service period of the award. We currently estimate the cumulative compensation cost of the EPS-based PSUs to be recorded over the three-year service period is $4.2 million.

Retirement Plans

3 Months Ended

Mar. 31, 2023

Retirement Plans [Abstract]

Retirement Plans

9. Retirement Plans

All of the Company’s plans that provide retirement and similar benefits are defined contribution plans. These expenses include the impact of market gains and losses on assets held in deferred compensation plans and are recorded in selling, general and administrative expenses. Net gains for the Company’s retirement and profit-sharing plans, excess benefit plans and other similar plans are as follows (in thousands):



Three months ended March 31,
2023		2022
$	5,873	$	2,917

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Legal And Regulatory Matters

3 Months Ended

Mar. 31, 2023

Legal And Regulatory Matters [Abstract]

Legal And Regulatory Matters

10. 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 sections describe the various ongoing material lawsuits and investigations of which the Company is currently aware. Other than as described below, it is not possible at this time for us to estimate either the timing or outcome of any of those matters, or whether any potential loss, or range of potential losses, is probable or reasonably estimable.

Regulatory Matters and Litigation

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.

In connection with the settlement, VITAS and certain of its subsidiaries entered into a corporate integrity agreement (“CIA”) on October 30, 2017. The CIA formalizes various aspects of VITAS’ already existing Compliance Program and contains requirements

designed to document compliance with federal healthcare program requirements. It has a term of five years during which it imposes monitoring, reporting, certification, oversight, screening and training obligations, certain of which had previously been implemented by VITAS. Although the five-year term has lapsed, VITAS still has certain obligations under the agreement including having an Independent Review Organization perform audit and review functions and to prepare reports regarding compliance with federal healthcare programs for the fifth year of the agreement. In the event of breach of the CIA, VITAS could become liable for payment of stipulated penalties or could be excluded from participation in federal healthcare programs.

On October 16, 2020, VITAS received a Civil Investigative Demand (“CID”) issued by the U.S. Department of Justice (“DOJ”) pursuant to the False Claims Act concerning allegations of the submission of false claims for hospice services for which reimbursement was sought from federal healthcare programs, including Medicare. The CID requested information regarding 32 patients from our Florida operations. On November 30, 2022, VITAS received a Letter of Declination from the DOJ, informing VITAS that the United States was declining to intervene in this case giving rise to the CID, United States Ex. Rel. O’Keefe v VITAS Healthcare Corporation, et al. that was unsealed on November 15, 2022. On April 6, 2023, the relator dismissed the case, without prejudice, with the consent of the United States.

VITAS is one of a group of hospice providers selected by the OIG’s Office of Audit Services (“OAS”) for inclusion in an audit of the provision of elevated level-of-care hospice services. On July 14, 2022, VITAS received the final audit report from OAS. Per this report, the OAS audit examined VITAS inpatient and continuous care claims for the period April 2017 to March 2019. The audit covered a total population of 50,850 claims representing total Medicare reimbursement of $210.0 million during this two-year time period. From this population, OAS selected 100 claims, representing $688,000 of reimbursement, for detailed review. The final OAS audit report includes a series of recommendations, including that VITAS repay approximately $140.0 million of the $210.0 million VITAS received from Medicare for hospice services during this two-year period, despite the fact that at the time of the release of the results of the audit, many of the disputed claims were time-barred from being challenged. VITAS believes that the OAS audit process and related final report contains significant flaws including its methodology, medical reviews, technical reviews, proposed extrapolation methodology, and contravenes the “reasonable physician standard” set forth in the appliable Aseracare precedent.

On August 29, 2022, six weeks subsequent to the OAS finalizing its audit, VITAS received a demand letter from its Medicare Administrative Contractor (“MAC”) seeking repayment of $50.3 million. This demand letter is $90.0 million lower than the final OAS audit recommendation, as a significant portion of the 100 claims reviewed are closed pursuant to applicable law and ineligible to be reopened. VITAS timely filed its initial appeal of the overpayment decision and deposited $50.3 million under the “Immediate Recoupment” process to preserve its appeal rights. After the initial redetermination process, VITAS was refunded $2.5 million of the amount deposited and continues to appeal the remaining claims. The amount deposited has been recorded as an “other long-term asset” in the consolidated balance sheets, as detailed in Note 13. VITAS intends to continue vigorously defending the claims brought; however, the Company cannot predict the eventual outcome, or reasonably estimate any potential loss, from any such claims at this time.

Regardless of the outcome of any 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. Although the Company intends to defend them vigorously, there can be no assurance that those suits will not have a material adverse effect on the Company.

Concentration Of Risk

3 Months Ended

Mar. 31, 2023

Concentration Of Risk [Abstract]

Concentration Of Risk

11. Concentration of Risk

As of March 31, 2023, and December 31, 2022, approximately 70% and 64%, respectively, of VITAS’ total accounts receivable balance were from Medicare and 24% and 29%, respectively, of VITAS’ total accounts receivable balance were due from various state Medicaid or managed Medicaid programs. Combined accounts receivable from Medicare, Medicaid, and managed Medicaid represent approximately 73% of the consolidated net accounts receivable in the accompanying consolidated balance sheets as of March 31, 2023.

VITAS has a pharmacy services contract with one service provider for specified pharmacy services related to its hospice operations. Similarly, effective January 1, 2022, 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.

Cash Overdrafts and Cash Equivalents

3 Months Ended

Mar. 31, 2023

Cash Overdrafts and Cash Equivalents [Abstract]

Cash Overdrafts and Cash Equivalents

12. Cash Overdrafts and Cash Equivalents

There were no cash overdrafts payable included in accounts payable at March 31, 2023 and December 31, 2022.

From time to time throughout the year, we invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. The amount invested was not material for each balance sheet date presented.

Other Assets

3 Months Ended

Mar. 31, 2023

Other Assets [Abstract]

Other Assets

13. Other Assets

Other assets comprise the following (in thousands):



	March 31,		December 31,
	2023		2022

Deposit with OAS	$	48,422	$	50,274
Cash surrender value life insurance		3,640		3,636
Noncurrent advances and deposits		2,196		2,368
Deferred debt costs		1,646		1,703
Other long-term receivable		1,607		1,826
	$	57,511	$	59,807

Other Current Liabilities

3 Months Ended

Mar. 31, 2023

Other Current Liabilities [Abstract]

Other Current Liabilities

14. Other Current Liabilities


	March 31,		December 31,
	2023		2022

Healthcare worker retention bonus	$	30,551	$	19,634
Medicare Cap		10,365		14,380
All other		28,388		26,990
	$	69,304	$	61,004

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

Financial Instruments

3 Months Ended

Mar. 31, 2023

Financial Instruments [Abstract]

Financial Instruments

15. 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 March 31, 2023 (in thousands):


				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	$	97,436	$	97,436	$	-	$	-
Long-term debt and current portion of long-term debt		21,250		-		21,250		-

‎

The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2022 (in thousands):


				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	$	93,196	$	93,196	$	-	$	-
Long-term debt and current portion of long-term debt		97,500		-		97,500		-

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 5, our outstanding long-term debt has a floating interest rate that is 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 approximates its carrying value.

Capital Stock Repurchase Plan Transactions

3 Months Ended

Mar. 31, 2023

Capital Stock Repurchase Plan Transactions [Abstract]

Capital Stock Repurchase Plan Transactions

16. Capital Stock Repurchase Plan Transactions

We repurchased the following capital stock:



	Three months ended March 31,
	2023		2022

Total cost of repurchased shares (in thousands)	$	-	$	27,353
Shares repurchased		-		57,500
Weighted average price per share	$	-	$	475.71

In May and November 2021, the Board of Directors authorized a total of $600.0 million for additional stock repurchase under Chemed’s existing share repurchase program. We currently have $87.9 million of authorization remaining under this share repurchase plan.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Acquisitions

3 Months Ended

Mar. 31, 2023

Acquisitions [Abstract]

Acquisitions

17. Acquisitions

In 2022, VITAS purchased the hospice assets of one Florida provider for $1.24 million in cash. Roto-Rooter completed the acquisition of three franchises and the related assets in New Jersey for a total of $2.29 million in cash.

Goodwill is assessed for impairment on a yearly basis as of October 1. All goodwill recognized is deductible for tax purposes.

Shown below is movement in Goodwill (in thousands):


	VITAS		Roto-Rooter		Total
Balance at December 31, 2022	$	334,063	$	247,232	$	581,295
Foreign currency adjustments		-		(9)		(9)
Balance at March 31, 2023	$	334,063	$	247,223	$	581,286

Basis Of Presentation (Policy)	3 Months Ended
Basis Of Presentation (Policy)	Mar. 31, 2023
Basis Of Presentation [Abstract]
Basis Of Presentation	As used herein, the terms “We,” “Company” and “Chemed” refer to Chemed Corporation or Chemed Corporation and its consolidated subsidiaries. We have prepared the accompanying unaudited consolidated financial statements of Chemed in accordance with Rule 10-01 of SEC Regulation S-X. Consequently, we have omitted certain disclosures required under generally accepted accounting principles in the United States (“GAAP”) for complete financial statements. The December 31, 2022 balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, in our opinion, the financial statements presented herein contain all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any other future period, and we make no representations related thereto. These financial statements are prepared on the same basis as and should be read in conjunction with the audited Consolidated Financial Statements and related Notes included in our Annual Report on Form 10-K for the year ended December 31, 2022.
Cloud Computing	CLOUD COMPUTING As of March 31, 2023, Roto-Rooter has no significant capitalized implementation costs related to cloud computing. VITAS utilizes a human resources system that is considered a cloud computing arrangement. We have capitalized approximately $5.6 million related to implementation of this project which is included in prepaid assets in the accompanying balance sheets. The VITAS human resource system was placed into service in January 2020 and is being amortized over 5.7 years. For the three months ended March 31, 2023 and 2022, $249,000 has been amortized, respectively.
Income Taxes	INCOME TAXES Our effective income tax rate was 23.9% in the first quarter of 2023 compared to 24.2% during the first quarter of 2022. Excess tax benefit on stock options exercised reduced our income tax expenses by $1.7 million and $1.4 million, respectively for the quarters ended March 31, 2023 and 2022.
Non-Cash Transactions	NON-CASH TRANSACTIONS Included in the accompanying Consolidated Balance Sheets are $1.7 million and $1.9 million of capitalized property and equipment which were not paid for as of March 31, 2023 and December 31, 2022, respectively. Accrued property and equipment purchases have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flow. There are no material non-cash amounts included in interest expense for any period presented.
Business Combinations	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 17 for discussion of recent acquisitions. Quarterly amortization of intangible assets is mainly driven by two Roto-Rooter franchise acquisitions completed in 2019. The total purchase price of these acquisitions was $138.0 million. As part of the purchase price allocation, approximately $59.2 million was determined to be the value of reacquired franchise rights which are being amortized over the remaining life of each franchise agreement. The average remaining life on the reacquired franchise agreements was approximately seven years. Quarterly amortization of reacquired franchise rights for these two acquisitions is approximately $2.0 million ($8.1 million annualized through 2026). This contrasts to quarterly franchise fees historically collected from these two franchisees of approximately $470,000 ($1.9 million annualized).
Estimates	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. Disclosures of after-tax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Revenue Recognition [Abstract]

Schedule Of Patient Care Service Revenue

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



	Medicare		Medicaid		Commercial		Total
Routine home care	$	250,916	$	10,568	$	5,566	$	267,050
Continuous care		18,508		650		783		19,941
Inpatient care		25,519		2,432		1,142		29,093
	$	294,943	$	13,650	$	7,491	$	316,084

All other revenue - self-pay, respite care, etc.								3,021
Subtotal							$	319,105
Medicare cap adjustment								(2,750)
Implicit price concessions								(3,108)
Room and board, net								(2,769)
Net revenue							$	310,478

‎

The composition of patient care service revenue by payor and level of care for the quarter ended March 31, 2022 is as follows (in thousands):


	Medicare		Medicaid		Commercial		Total
Routine home care	$	241,337	$	10,907	$	5,392	$	257,636
Continuous care		17,977		814		787		19,578
Inpatient care		23,427		1,963		1,180		26,570
	$	282,741	$	13,684	$	7,359	$	303,784

All other revenue - self-pay, respite care, etc.								3,007
Subtotal							$	306,791
Medicare cap adjustment								(2,500)
Implicit price concessions								(2,985)
Room and board, net								(2,117)
Net revenue							$	299,189

Schedule Of Disaggregated Revenue


	March 31,
	2023		2022
Drain cleaning	$	66,489	$	66,687
Plumbing		50,453		47,672
Excavation		59,576		55,188
Other		193		165
Subtotal - short term core		176,711		169,712
Water restoration		50,762		40,360
Independent contractors		23,300		21,418
Franchisee fees		1,351		1,317
Other		4,745		4,191
Gross revenue		256,869		236,998
Implicit price concessions and credit memos		(7,190)		(5,638)
Net revenue	$	249,679	$	231,360

Segments (Tables)

3 Months Ended

Mar. 31, 2023

Segments [Abstract]

Segment Data



	Three months ended March 31,
	2023		2022
VITAS	$	24,764	$	36,481
Roto-Rooter		47,653		43,937
Total		72,417		80,418
Corporate		(18,296)		(16,249)
Net income	$	54,121	$	64,169

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule Of Computation Of Earnings Per Share


			Net Income
For the Three Months Ended March 31,		Income		Shares	Earnings per Share
2023
	Earnings	$	54,121	14,966	$	3.62
	Dilutive stock options		-	94
	Nonvested stock awards		-	50
	Diluted earnings	$	54,121	15,110	$	3.58

2022
	Earnings	$	64,169	14,986	$	4.28
	Dilutive stock options		-	165
	Nonvested stock awards		-	41
	Diluted earnings	$	64,169	15,192	$	4.22

Long-Term Debt And Lines of Credit (Tables)

3 Months Ended

Mar. 31, 2023

Long-Term Debt And Lines Of Credit [Abstract]

Debt Outstanding



Revolver	$	-
Term loan		21,250
Total		21,250
Current portion of long-term debt		(5,000)
Long-term debt	$	16,250

Schedule of Principal Payments of the Term Loan



2023	$	3,750
2024		5,000
2025		5,000
2026		5,000
2027		2,500
	$	21,250

Financial Debt Covenants



Description		Requirement

Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA)		< 3.50 to 1.00

Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)		> 3.00 to 1.00

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Other Expense – Net (Tables)

3 Months Ended

Mar. 31, 2023

Other Expense – Net [Abstract]

Schedule Of Other Expense – Net



	Three months ended March 31,
	2023		2022
Market value adjustment on assets held in
deferred compensation trust	$	(321)	$	(3,934)
Interest income		150		73
Other-net		68		(1)
Total other (expense)/income - net	$	(103)	$	(3,862)

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Components Of Balance Sheet Information Related To Leases


	March 31,		‎December 31,
	2023		2022
Assets
Operating lease assets	$	131,219	$	135,662

Liabilities
Current operating leases		38,291		38,996
Noncurrent operating leases		106,212		110,513
Total operating lease liabilities	$	144,503	$	149,509

Components Of Lease Expense


	Three months ended March 31,
	2023		2022
Lease Expense (a)
Operating lease expense	$	14,906	$	14,903
Sublease income		(23)		(45)
Net lease expense	$	14,883	$	14,858

(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.

Components Of Cash Flow Information Related To Leases


	Three months ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	12,668	$	12,489

Leased assets obtained in exchange for new operating lease liabilities	$	6,845	$	20,453


Weighted Average Remaining Lease Term at March 31, 2023
Operating leases	4.58	years


Weighted Average Discount Rate at March 31, 2023
Operating leases	2.64	%

Summary Of Maturity Of Operating Lease Liabilities


Maturity of Operating Lease Liabilities (in thousands)

2023	$	34,439
2024		37,667
2025		30,078
2026		23,143
2027		12,607
Thereafter		16,065
Total lease payments	$	153,999
Less: interest		(9,496)
Total liability recognized on the balance sheet	$	144,503

Retirement Plans (Tables)

3 Months Ended

Mar. 31, 2023

Retirement Plans [Abstract]

Schedule Of Expenses For Retirement, Profit-Sharing Plans, Excess Benefit Plans And Other Similar Plans



Three months ended March 31,
2023		2022
$	5,873	$	2,917

Other Assets (Tables)

3 Months Ended

Mar. 31, 2023

Other Assets [Abstract]

Schedule of Other Assets



	March 31,		December 31,
	2023		2022

Deposit with OAS	$	48,422	$	50,274
Cash surrender value life insurance		3,640		3,636
Noncurrent advances and deposits		2,196		2,368
Deferred debt costs		1,646		1,703
Other long-term receivable		1,607		1,826
	$	57,511	$	59,807

Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Other Current Liabilities [Abstract]

Schedule of Other Current Liabilities


	March 31,		December 31,
	2023		2022

Healthcare worker retention bonus	$	30,551	$	19,634
Medicare Cap		10,365		14,380
All other		28,388		26,990
	$	69,304	$	61,004

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Financial Instruments [Abstract]

Carrying Value, Fair Value And Hierarchy Of Financial Instruments

The following shows the carrying value, fair value and the hierarchy for our financial instruments as of March 31, 2023 (in thousands):


				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	$	97,436	$	97,436	$	-	$	-
Long-term debt and current portion of long-term debt		21,250		-		21,250		-

‎

The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2022 (in thousands):


				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	$	93,196	$	93,196	$	-	$	-
Long-term debt and current portion of long-term debt		97,500		-		97,500		-

Capital Stock Repurchase Plan Transactions (Tables)

3 Months Ended

Mar. 31, 2023

Capital Stock Repurchase Plan Transactions [Abstract]

Schedule Of Repurchased Capital Stock



	Three months ended March 31,
	2023		2022

Total cost of repurchased shares (in thousands)	$	-	$	27,353
Shares repurchased		-		57,500
Weighted average price per share	$	-	$	475.71

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2023

Acquisitions [Abstract]

Schedule Of Movement In Goodwill


	VITAS		Roto-Rooter		Total
Balance at December 31, 2022	$	334,063	$	247,232	$	581,295
Foreign currency adjustments		-		(9)		(9)
Balance at March 31, 2023	$	334,063	$	247,223	$	581,286

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Basis Of Presentation (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
Basis Of Presentation (Narrative) (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2019	Dec. 31, 2022
Effective tax rate	23.90%	24.20%
Excess tax benefit on stock options	$ 1,700,000	$ 1,400,000
Capitalized property and equipment	1,700,000			$ 1,900,000
Revenue from Contract with Customer, Including Assessed Tax	319,105,000	306,791,000
VITAS [Member] \| Cloud Computing [Member]
Capitalized contract cost	5,600,000
Capitalized contract cost, amortization expense	$ 249,000	$ 249,000
Capitalized contract cost, amortization period	5 years 8 months 12 days
Roto-Rooter [Member]
Total purchase price			$ 138,000,000.0
Reacquired Franchise Rights [Member] \| Roto-Rooter [Member]
Intangible assets acquired			$ 59,200,000
Quarterly amortization of reacquired franchise agreements	$ 2,000,000.0
Average remaining life	7 years
Reacquired Franchise Rights [Member] \| Roto-Rooter [Member] \| Annualized Through 2026 [Member]
Quarterly amortization of reacquired franchise agreements	$ 8,100,000
Reacquired Franchise Rights [Member] \| Franchise Fees [Member] \| Roto-Rooter [Member]
Revenue from Contract with Customer, Including Assessed Tax	470,000
Reacquired Franchise Rights [Member] \| Franchise Fees [Member] \| Roto-Rooter [Member] \| Annualized [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 1,900,000

Revenue Recognition (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
Revenue Recognition (Narrative) (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2013
Revenue Recognition [line items]
Service revenue and sales	$ 560,157,000	$ 530,549,000
Roto-Rooter [Member]
Revenue Recognition [line items]
Credit payment terms	30 days
Duration of advance notice of cancellation without penalty for both parties	90 days
Term of contract	10 years
Duration of advance notice of cancelation without penalty	60 days
Roto-Rooter [Member] \| Maximum [Member]
Revenue Recognition [line items]
Duration of services provided	5 days
Roto-Rooter [Member] \| Minimum [Member]
Revenue Recognition [line items]
Duration of services provided	3 days
VITAS [Member]
Revenue Recognition [line items]
Period of tier one care rate	60 days
Period of tier two care rate	61 days
Period of services provided after discharge	12 months
Period of service intensity add-on payment	7 days
Reimbursement period per day in 15 min. increments	4 hours
Minimum amount of care per 24-hr period	8 hours
Charity care cost	$ 2,000,000.0	2,000,000.0
Percentage of automatic budget reductions			2.00%
Percentage of medicaid reimbursement	95.00%
Percentage of expenses	5.00%
Service revenue and sales	$ 0
Accounts Receivable, Sale	$ 0
VITAS [Member] \| Adoption of ASC 606 [Member]
Revenue Recognition [line items]
Percentage of expenses	5.00%
VITAS [Member] \| Maximum [Member]
Revenue Recognition [line items]
Inpatient cap percentage	20.00%
VITAS [Member] \| Two Program Projected Measurement Period Liability [Member]
Revenue Recognition [line items]
Medicare cap adjustment	$ 2,800,000
VITAS [Member] \| Three Program Projected Measurement Period Liability [Member]
Revenue Recognition [line items]
Additional Medicare cap adjustment related to prior cap liabilities			$ 9,000,000.0
VITAS [Member] \| Four Programs Projected Measurement Period Liability [Member]
Revenue Recognition [line items]
Medicare cap adjustment		$ 2,500,000

Revenue Recognition (Schedule Of Patient Care Service Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	$ 319,105	$ 306,791
Net revenue	310,478	299,189
Routine Home Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	267,050	257,636
Continuous Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	19,941	19,578
Inpatient Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	29,093	26,570
Care Services Total [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	316,084	303,784
All Other Revenue- Self-pay, Respite Care, Etc. [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	3,021	3,007
Medicare Cap Adjustment [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Medicare cap adjustment	(2,750)	(2,500)
Implicit Price Concessions [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Implicit price concessions	(3,108)	(2,985)
Room And Board, Net [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Room and board, net	(2,769)	(2,117)
Medicare [Member] \| Routine Home Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	250,916	241,337
Medicare [Member] \| Continuous Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	18,508	17,977
Medicare [Member] \| Inpatient Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	25,519	23,427
Medicare [Member] \| Care Services Total [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	294,943	282,741
Medicaid [Member] \| Routine Home Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	10,568	10,907
Medicaid [Member] \| Continuous Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	650	814
Medicaid [Member] \| Inpatient Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	2,432	1,963
Medicaid [Member] \| Care Services Total [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	13,650	13,684
Commercial [Member] \| Routine Home Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	5,566	5,392
Commercial [Member] \| Continuous Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	783	787
Commercial [Member] \| Inpatient Care [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	1,142	1,180
Commercial [Member] \| Care Services Total [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Care service revenue	$ 7,491	$ 7,359

Revenue Recognition (Schedule Of Disaggregated Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Subtotal	$ 319,105	$ 306,791
Net revenue	310,478	299,189
Roto-Rooter [Member]
Subtotal	256,869	236,998
Implicit price concessions and credit memos	(7,190)	(5,638)
Net revenue	249,679	231,360
Roto-Rooter [Member] \| Drain cleaning [Member]
Subtotal	66,489	66,687
Roto-Rooter [Member] \| Plumbing [Member]
Subtotal	50,453	47,672
Roto-Rooter [Member] \| Excavation [Member]
Subtotal	59,576	55,188
Roto-Rooter [Member] \| Other [Member]
Subtotal	193	165
Roto-Rooter [Member] \| Short-Term Core [Member]
Subtotal	176,711	169,712
Roto-Rooter [Member] \| Water Restoration [Member]
Subtotal	50,762	40,360
Roto-Rooter [Member] \| Independent Contractors [Member]
Subtotal	23,300	21,418
Roto-Rooter [Member] \| Franchise Fees [Member]
Subtotal	1,351	1,317
Roto-Rooter [Member] \| Other [Member]
Subtotal	$ 4,745	$ 4,191

Segments (Segment Data) (Details) - USD ($) $ in Thousands	3 Months Ended
Segments (Segment Data) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Net income	$ 54,121	$ 64,169
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net income	72,417	80,418
VITAS [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net income	24,764	36,481
Roto-Rooter [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Net income	47,653	43,937
Corporate [Member]
Segment Reporting Information [Line Items]
Net income	$ (18,296)	$ (16,249)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Earnings Per Share (Narrative) (Details) - shares	3 Months Ended
Earnings Per Share (Narrative) (Details) - shares	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Excluded stock options, Anti-dilutive	326,000	609,000

Earnings Per Share (Schedule Of Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings	$ 54,121	$ 64,169
Diluted earnings	$ 54,121	$ 64,169
Earnings, Shares	14,966	14,986
Dilutive stock options, Shares	94	165
Nonvested stock awards, Shares	50	41
Diluted earnings, Shares	15,110	15,192
Earnings, Earnings per Share	$ 3.62	$ 4.28
Diluted earnings, Earnings per Share	$ 3.58	$ 4.22

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

Long-Term Debt And Lines of Credit (Narrative) (Details) - USD ($)		3 Months Ended
	Apr. 28, 2023	Mar. 31, 2023	Jun. 28, 2022
Debt Instrument [Line Items]
Repayment of long-term debt (Note 3)		$ 76,250,000
Debt issuance costs		$ 0
SOFR [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rate		1.00%
2022 Credit Facilities [Member]
Debt Instrument [Line Items]
Borrowing capacity		$ 550,000,000.0
Deferred financing costs		1,500,000
Standby letters of credit		45,300,000
Unused lines of credit		$ 404,700,000
2022 Credit Facilities [Member] \| Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility period, years		5 years
Amount outstanding			$ 450,000,000.0
2022 Credit Facilities [Member] \| Expansion Feature [Member]
Debt Instrument [Line Items]
Borrowing capacity			250,000,000.0
2022 Credit Facilities [Member] \| Term Loan [Member]
Debt Instrument [Line Items]
Credit facility period, years		5 years
Periodic principal payments		$ 1,250,000
Frequency of principal payments		last day of each fiscal quarter
Repayment of long-term debt (Note 3)		$ 75,000,000.0
Prepayment penalties		0
Amount outstanding			$ 100,000,000.0
Deferred financing costs		$ 0
Forecast [Member] \| 2022 Credit Facilities [Member]
Debt Instrument [Line Items]
Borrowing capacity	$ 450,000,000.0
Forecast [Member] \| 2022 Credit Facilities [Member] \| Term Loan [Member]
Debt Instrument [Line Items]
Repayment of long-term debt (Note 3)	$ 21,300,000

Long-Term Debt And Lines of Credit (Debt Outstanding) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total	$ 21,250
Current portion of long-term debt	(5,000)	$ (5,000)
Long-term debt	16,250	$ 92,500
Term Loan [Member]
Debt Instrument [Line Items]
Total	$ 21,250

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Long-Term Debt And Lines of Credit (Schedule of Principal Payments of the Term Loan) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Long-Term Debt And Lines Of Credit [Abstract]
2023	$ 3,750
2024	5,000
2025	5,000
2026	5,000
2027	2,500
Total	$ 21,250

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Long-Term Debt And Lines of Credit (Financial Debt Covenants) (Details)	3 Months Ended
	Mar. 31, 2023
Minimum [Member]
Debt Instrument [Line Items]
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement	1.00
Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)	1.00
Maximum [Member]
Debt Instrument [Line Items]
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement	3.50
Interest Coverage Ratio (Consolidated Adj. EBITDA/Consolidated Interest Expense)	3.00

Other (Expense)/Income -- Net (Schedule Of Other (Expense)/Income – Net) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Expense – Net [Abstract]
Market value adjustment on assets held in deferred compensation trust	$ (321)	$ (3,934)
Interest income	150	73
Other-net	68	(1)
Total other (expense)/income - net	$ (103)	$ (3,862)

Leases (Narrative) (Details)	3 Months Ended
Leases (Narrative) (Details)	Mar. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Finance Lease, Liability	$ 0
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	$ 0
Option to extend the lease, term	up to 5 years
Option to terminate the lease, term	within 1 year
Operating lease payments related to extended lease terms	$ 2,700,000
Lease payments for leases signed but not yet commenced	$ 144,000,000,000
Minimum [Member]
Lessee, Lease, Description [Line Items]
Remaining terms of leases under operating lease	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Remaining terms of leases under operating lease	10 years

Leases (Components Of Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Operating lease assets	$ 131,219	$ 135,662
Liabilities
Current operating leases	38,291	38,996
Noncurrent operating leases	106,212	110,513
Total operating lease liabilities	$ 144,503	$ 149,509

Leases (Components Of Lease Expense) (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Lease Expense

Operating lease expense

^[1]

$ 14,906

$ 14,903

Sublease income

^[1]

(23)

(45)

Net lease expense

^[1]

$ 14,883

$ 14,858

[1]	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.

Leases (Components Of Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$ 12,668	$ 12,489
Leased assets obtained in exchange for new operating lease liabilities	$ 6,845	$ 20,453
Weighted Average Remaining Lease Term, Operating leases	4 years 6 months 29 days
Weighted Average Discount Rate, Operating leases	2.64%

Leases (Summary Of Maturity Of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 34,439
2024	37,667
2025	30,078
2026	23,143
2027	12,607
Thereafter	16,065
Total lease payments	153,999
Less: interest	(9,496)
Total liability recognized on the balance sheet	$ 144,503	$ 149,509

Stock-Based Compensation Plans (Narrative) (Details) - USD ($) $ in Millions		3 Months Ended
	Feb. 17, 2023	Mar. 31, 2023
Performance Based TSR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vesting period, years		3 years
Cumulative compensation expense	$ 5.1
Performance Based EPS [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vesting period, years		3 years
Cumulative compensation expense	$ 4.2
Compensation/Incentive Committee [Member] \| Performance Based TSR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of stock granted	6,078

Retirement Plans (Schedule Of Expenses For Retirement, Profit-Sharing Plans, Excess Benefit Plans And Other Similar Plans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Retirement Plans [Abstract]
Net (losses)/gains for retirement and profit-sharing plans, excess benefit plans and other similar plans	$ 5,873	$ 2,917

Legal And Regulatory Matters (Narrative) (Details)				3 Months Ended
Legal And Regulatory Matters (Narrative) (Details)	Aug. 29, 2022 USD ($)	Jul. 14, 2022 USD ($) item	Oct. 16, 2020 item	Mar. 31, 2023
Audit of provision of elevated level-of-care hospice services [Member]
Loss Contingencies [Line Items]
Loss Contingency, Period of Occurrence				two-year time period
Number of total care claims \| item		50,850
Reimbursement amount over period of occurrence		$ 210,000,000.0
Number of claims selected \| item		100
Amount of reimbursement for claims selected		$ 688,000
Maximum damages sought		$ 140,000,000.0
Loss Contingency, Damages Sought, Value	$ 50,300,000
Difference between the final OAS audit recommendation and damages sought	90,000,000.0
VITAS [Member]
Loss Contingencies [Line Items]
Number of Patients \| item			32
Term to impose monitoring, reporting, certification, oversight, screening, and training				5 years
Refund of Amount Deposited	$ 2,500,000

Concentration Of Risk (Narrative) (Details) - item	3 Months Ended	12 Months Ended
Concentration Of Risk (Narrative) (Details) - item	Mar. 31, 2023	Dec. 31, 2022
VITAS [Member]
Concentration Risk [Line Items]
Number of service providers	1
Medicare [Member] \| Accounts Receivable [Member] \| Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	70.00%	64.00%
Medicaid [Member] \| Accounts Receivable [Member] \| Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	24.00%	29.00%
Medicare, Medicaid, And Managed Medicaid [Member] \| Accounts Receivable [Member] \| Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	73.00%

Cash Overdrafts and Cash Equivalents (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Cash Overdrafts and Cash Equivalents [Abstract]
Cash overdrafts included in accounts payable	$ 0	$ 0

Other Assets (Schedule of other assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Assets [Abstract]
Deposit with OAS	$ 48,422	$ 50,274
Cash surrender value life insurance	3,640	3,636
Noncurrent advances and deposits	2,196	2,368
Deferred debt costs	1,646	1,703
Other long-term receivable	1,607	1,826
Other assets	$ 57,511	$ 59,807

Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Other Current Liabilities [Abstract]
Percentage of individual amounts of total current liabilities	5.00%
Healthcare worker retention bonus	$ 30,551	$ 19,634
Medicare cap	10,365	14,380
All other	28,388	26,990
Other current liabilities	$ 69,304	$ 61,004

Financial Instruments (Narrative) (Details)	3 Months Ended
Financial Instruments (Narrative) (Details)	Mar. 31, 2023
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Period in which the interest rate will reset	30 days
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Period in which the interest rate will reset	60 days

Financial Instruments (Carrying Value, Fair Value And Hierarchy Of Financial Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments of deferred compensation plans held in trust	$ 97,436	$ 93,196
Long-term debt	21,250	97,500
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments of deferred compensation plans held in trust	97,436	93,196
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	$ 21,250	$ 97,500

Capital Stock Repurchase Plan Transactions (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2023	Nov. 30, 2021	May 31, 2021
Capital Stock Repurchase Plan Transactions [Abstract]
Stock repurchase program, amount authorized		$ 600.0	$ 600.0
Stock repurchase program, remaining authorized repurchase amount	$ 87.9

Capital Stock Repurchase Plan Transactions (Schedule Of Repurchased Capital Stock) (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Capital Stock Repurchase Plan Transactions [Abstract]
Total cost of repurchased shares \| $	$ 27,353
Shares repurchased \| shares	57,500
Weighted average price per share \| $ / shares	$ 475.71

Acquisitions (Narrative) (Details) $ in Thousands	12 Months Ended
Acquisitions (Narrative) (Details) $ in Thousands	Dec. 31, 2022 USD ($) item
Florida Provider [Member]
Goodwill [Line Items]
Purchase of assets in cash	$ 1,240
Franchises, New Jersey [Member]
Goodwill [Line Items]
Number of completed business combinations \| item	3
Acquisition, in cash	$ 2,290

Acquisitions (Schedule Of Movement In Goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Line Items]
Beginning balance	$ 581,295
Foreign currency adjustments	(9)
Ending balance	581,286
VITAS [Member]
Goodwill [Line Items]
Beginning balance	334,063
Ending balance	334,063
Roto-Rooter [Member]
Goodwill [Line Items]
Beginning balance	247,232
Foreign currency adjustments	(9)
Ending balance	$ 247,223

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details