CHE · 10-Q · 2026Q1 · Full report

Revenue Concentration Risk

CHEMED CORP · 2026-04-28 · Importance 58 · Surprise 42

VITAS has concentrated exposure to U.S. Federal Medicare payments: the company typically receives a payment in excess of $62.0 million from the Federal government for hospice services every other Friday. The timing of those payments materially affects VITAS accounts receivable and cash; Chemed reported a $32.9 million AR increase tied to period-end timing. Management states these timing-driven AR variations generally normalize over a two-year period as cash-flow shifts reverse. The company discloses that changes in the timing of federal payments can significantly impact short-term liquidity and working capital at VITAS.