Chemed (CHE) risk factors, FY2025 10-K

Other

1. 01We face intense competition from numerous, fragmented competitors. If we do not compete effectively, our business may suffer27% rewritten
2. 02Our operations are subject to numerous laws and regulations, exposing us to potential claims and compliance costs that could adversely affect our business
3. 03Roto-Rooter’s loss of key management personnel or its inability to hire and retain skilled employees could adversely affect its business, financial condition and results of operations91% rewritten
4. 04negatively impact its ability to maintain or increase customer calls and jobs, a key aspect of its growth strategy, and could adversely affect its future operating resultsNew
5. 05Roto-Rooter’s success is highly dependent on its brand reputation
6. 06VITAS is highly dependent on payments from Medicare and Medicaid. If there are changes in the rate or methods governing these payments, VITAS’ net patient service revenue and profits could be materially affected
7. 0715% to 20% of VITAS’ days of care are provided to patients who reside in nursing homes. Changes in the laws and regulations regarding payments for hospice services and “room and board” provided to VITAS’ hospice patients residing in nursing homes could reduce its net patient service revenue and profitability
8. 08If VITAS is unable to maintain relationships with existing patient referral sources or to establish new referral sources, VITAS’ growth and profitability could be adversely affected
9. 09VITAS operates in an industry that is subject to extensive government regulation and claims reviews, and changes in law and regulatory interpretations could reduce its net patient service revenue and profitability and adversely affect its financial condition and results of operations
10. 10Various state approval requirements, such as facility and professional licensure, Certificate of Need, compliance surveys and other certification or recertification requirements
11. 11Federal and state legislative and regulatory initiatives could require VITAS to expend substantial sums on acquiring, implementing and supporting new information systems, which could negatively impact its profitability and cash flows
12. 12VITAS’ growth strategies may not be successful, which could adversely affect its business
13. 13VITAS’ loss of key management personnel or its inability to hire and retain skilled employees could adversely affect its business, financial condition and results of operations
14. 14A nationwide shortage of qualified nurses and aides could adversely affect VITAS’ profitability, growth and ability to continue to provide quality, responsive hospice services to its patients as nursing and health aides’ wages and benefits increase
15. 15VITAS may not be able to compete successfully against other hospice providers, and competitive pressures may limit its ability to maintain or increase its market position, which could adversely affect its profitability, financial condition and cash flows
16. 16Changes in rates or methods of payment for VITAS’ services could adversely affect its revenues and profits
17. 17Liability claims may have an adverse effect on VITAS, and its insurance coverage may be inadequate
18. 18A successful claim in excess of the insurance coverage could have a material adverse effect on VITAS. Claims, regardless of their merit or eventual outcome, also may have a material adverse effect on VITAS’ business and reputation due to the costs of litigation, diversion of management’s time and related publicity71% rewritten
19. 19As a result of the cyberattack, we have reviewed our system and strengthened it further to better prevent future successful attacksNew
20. 20healthcare and with the increase in use of AI and other new technologies, has significantly increased our usage of information technology systems and heightened the need for security of those systems with the increase in telehealthNew
21. 21VITAS’ success is highly dependent on its brand reputation
22. 22VITAS’ headquarters and a significant portion of its operations are in Florida
23. 23The agreements and instruments governing borrowing capacity contain restrictions and limitations that could significantly impact our ability to operate our business and adversely affect the price of our Capital Stock
24. 24We depend on our management team and the loss of their service could have a material adverse effect on our business, financial condition and results of operations
25. 25Environmental and safety compliance costs and liabilities could increase our expenses and adversely affect our financial condition
26. 26We are subject to certain anti-takeover statutes that might make it more difficult to effect a change in control of the Company
27. 27An adverse ruling against us in certain litigation could have an adverse effect on our financial condition and results of operations
28. 28We have historically incurred debt to finance the operations of the Company
29. 29Issues associated with the actual or perceived effects of another epidemic, pandemic, or similar widespread public health concern, could adversely affect our businesses
30. 30Significant Tariffs Could Increase Costs, Decrease Margin, and Materially Adversely Affect the BusinessNew
31. 31These additional costs, in the case of VITAS, cannot be passed along to our patients because of the structure of hospice reimbursement, and in the case of Roto-Rooter, may not be able to be fully passed along to our customers. These additional costs could materially adversely affect our marginsNew