8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934

Date of Report (date of earliest event reported):
April 24, 2008


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

Delaware	1-8351	31-0791746
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

2600 Chemed Center, 255 East 5th Street, Cincinnati, OH 45202

(Address of principal executive offices)           (Zip Code)

Registrant’s telephone number, including area code:
(513) 762-6900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Page 1 of 2

Item 2.02     Results of Operations and Financial Condition

On April 24, 2008 Chemed Corporation issued a press release announcing its financial results for the quarter ended March 31, 2008. A copy of the release is furnished herewith as Exhibit 99.

Item 9.01     Financial Statements and Exhibits

d)	Exhibit
	(99)  Registrant's press release dated
	April 24, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		CHEMED CORPORATION
Dated:	April 25, 2008	By:	/s/  Arthur V. Tucker, Jr.
				Arthur V. Tucker, Jr.
				Vice President and Controller

Page 2 of 2

EX-99

Exhibit 99

Chemed Reports First-Quarter 2008 Results

CINCINNATI--(BUSINESS WIRE)--Chemed Corporation (Chemed) (NYSE:CHE), which operates VITAS Healthcare Corporation (VITAS), the nation’s largest provider of end-of-life care, and Roto-Rooter, the nation’s largest commercial and residential plumbing and drain cleaning services provider, today reported financial results for its first quarter ended March 31, 2008, versus the comparable prior-year period, as follows:

Consolidated operating results:

• Revenue increased 5.5% to $285 million
• Diluted EPS of $.69
• Diluted EPS, excluding special items, of $.73

VITAS segment operating results:

• Net Patient Revenue of $199 million, up 7.9%
• Average Daily Census (ADC) of 11,691, up 3.4%
• Admissions of 15,212, an increase of 7.8%
• Average Length of Stay in the quarter of 71.5 days
• Adjusted EBITDA of $23.6 million, a decline of 9.3%

Roto-Rooter segment operating results:

• Revenue of $87 million, an increase of 0.3%
• Job count of 196,249, a decline of 7.0%
• Adjusted EBITDA of $15.9 million, a decline of 2.7%

VITAS

Net revenue for VITAS was $199 million in the first quarter of 2008, which is an increase of 7.9% over the prior-year period. This revenue growth was the result of increased ADC of 3.4%, a Medicare price increase of approximately 3%, and a favorable shift in revenue mix from routine home care to high acuity care.

Average revenue per patient per day in the quarter was $186.67, which is 3.5% above the prior-year period. Routine home care reimbursement and high acuity care averaged $145.42 and $633.10, respectively, per patient per day in the first quarter of 2008. During the quarter, high acuity days-of-care was 8.5% of total days-of-care. Quarterly high acuity days-of-care had averaged between 8.0% and 8.4% in 2007. Any shift in revenue mix will have a noticeable impact on overall revenue given the significant disparity in reimbursement. However, given the relatively low profitability margin on high acuity care, this favorable mix shift had minimal impact on gross profit and net income in the quarter.

VITAS did not have any billing restrictions related to Medicare Cap for its first-quarter 2008 operating activity. As of March 31, 2008, VITAS has not accrued any Medicare billing restrictions for the 2008 or 2007 Cap years. Of VITAS’ 35 unique Medicare provider numbers, 30 provider numbers, or 86%, have a Cap cushion greater than 20% for the 2008 Cap year, four provider numbers are between 10% and 20%, and one provider number has Cap cushion of approximately 4%.

Gross margin in the first quarter of 2008 was 20.0%. This is 257 basis points below the first quarter of 2007, excluding the 2007 benefit from Medicare cap. This margin decline is a combination of increased expenses related to admissions and increased costs for direct patient care labor.

As part of its growth strategy, VITAS has expanded its investment in the admissions process. At the end of the first quarter of 2008, VITAS increased staffing of sales representatives, admissions coordinators and admissions nurses by 18%. This resulted in an additional $2.1 million of admission expense in the quarter and equates to 106 basis points of the decline in gross margin in the quarter.

The remaining margin decline is due to an increase in direct patient care labor. This additional labor is a combination of salary rate increases for existing employees as well as excess staffing relative to current patient census and individual plans of care. In the first quarter of 2008, total field salary increases averaged 4.2% over the prior-year period which is largely commensurate with local market salary requirements. This is above the 3.0% inflation per diem increase VITAS received from CMS in October 2007. Over the past several years the CMS calculated inflation factor has been below the actual inflation on direct patient care costs, primarily wages. Historically, VITAS has been able to offset this inflation adjustment shortfall through scale in management systems and infrastructure.

VITAS continues to refine the process of scheduling direct labor to allow for more daily flexibility with the goal of ensuring proper levels of staffing notwithstanding length of stay and census fluctuations. This involves more efficient utilization of field-based labor management tools designed to meet and respond to hospice team staffing requirements. VITAS anticipates more efficient labor management during the second quarter of 2008 with margins returning to more historical levels in the second half of 2008.

Selling, general and administrative expense was $16.1 million in the first quarter of 2008, which is an increase of 1.5% over the prior year. Adjusted EBITDA totaled $23.6 million, a decline of 9.3% over the prior year and equates to an adjusted EBITDA margin of 11.9%.

Roto-Rooter

Roto-Rooter’s plumbing and drain cleaning business generated sales of $87 million for the first quarter of 2008, 0.3% higher than the $86 million reported in the comparable prior-year quarter. Net income for the quarter was $9.1 million. The first-quarter net income includes a $0.4 million aftertax charge for a settlement of litigation relating to a 2003 fire that, for unique technical reasons, was not covered by Roto-Rooter’s secondary insurance carrier. Excluding this settlement, net income in the first quarter of 2008 declined approximately 0.6% over the first quarter of 2007. Adjusted EBITDA in the first quarter of 2008 totaled $15.9 million, a decrease of 2.7% over the first quarter of 2007, and equated to an adjusted EBITDA margin of 18.4%.

Job count in the first quarter of 2008 declined 7.0% when compared to the prior-year period. Total residential jobs declined 6.4% and consisted of residential plumbing jobs decreasing 4.9% and residential drain cleaning jobs declining 7.1%, when compared to the first quarter of 2007. Residential jobs represent approximately 70% of total job count. Total commercial jobs declined 8.4% with commercial plumbing job count declining 4.9% and commercial drain cleaning decreasing 9.9%, over the prior-year quarter.

The first quarter of 2008 clearly indicates recessionary pressures impacting demand for certain plumbing and drain cleaning services. This is evidenced by an 11% decline in aggregate call volume tracked in Roto-Rooter’s two centralized call centers. This decline in call volume has been partially offset by an increase in call conversion rate to paid jobs.

There is also greater disparity in demand within the United States. The Southeast region has experienced a 14.1% decline in commercial jobs while the Northeast had a modest 1.8% decline in commercial volume. Residential demand is also following a similar pattern in the Southeast, with job count declining 10.1% while the remaining regions have experienced a job count decline ranging between 4.3% and 6.7%.

Guidance for 2008

VITAS is estimated to generate full-year revenue growth from continuing operations, prior to Medicare Cap, of 8% to 10%. Admissions are estimated to increase 5% to 8% and full-year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 13% to 14%. EBITDA margins are forecasted to improve sequentially throughout 2008, with an adjusted EBITDA margin averaging 13.5% to 14.0% in the second half of 2008. This guidance assumes the hospice industry receives a full Medicare basket price increase of 3.0% in the fourth quarter of 2008. Full calendar year 2008 Medicare contractual billing limitations are estimated at $3.75 million.

Roto-Rooter is estimated to generate revenue totaling $343 million to $349 million. This guidance assumes revenue of approximately $83 million to $85 million in the second and third quarters of 2008 and $90 million to $92 million in the fourth quarter of the year. Adjusted EBITDA margin for 2008 is estimated in the range of 18.5% to 19.5%.

Based upon these factors, an effective tax rate of 39% and an average diluted share count of 24.2 million shares, our estimate is that full-year 2008 earnings per diluted share from continuing operations, excluding noncash expenses for stock options and charges or credits not indicative of ongoing operations, will be in the range of $3.05 to $3.20.

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on Friday, April 25, 2008, to discuss the company's quarterly results and provide an update on its business. The dial-in number for the conference call is (866) 510-0710 for U.S. and Canadian participants and (617) 597-5378 for international participants. The participant passcode is 12125956. A live webcast of the call can be accessed on Chemed's website at www.chemed.com by clicking on Investor Relations Home.

A taped replay of the conference call will be available beginning approximately two hours after the call's conclusion. It can be accessed by dialing 888-286-8010 for U.S. and Canadian callers and 617-801-6888 for international callers and will be available for one week following the live call. The replay passcode is 61838951. An archived webcast will also be available at www.chemed.com and will remain available for 14 days following the live call.

Chemed Corporation operates in the healthcare field through its VITAS Healthcare Corporation subsidiary. VITAS provides daily hospice services to over 11,600 patients with severe, life-limiting illnesses. This type of care is focused on making the terminally ill patient's final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides plumbing and drain service through company-owned branches, independent contractors and franchisees in the United States and Canada. Roto-Rooter also has licensed master franchisees in Indonesia, Singapore, Japan, and the Philippines.

This press release contains information about Chemed’s EBITDA and adjusted EBITDA, which are not measures derived in accordance with generally accepted accounting principles and which exclude components that are important to understanding Chemed’s financial performance. Chemed provides EBITDA and adjusted EBITDA to help investors and others evaluate its operating results, compare its operating performance with that of similar companies that have different capital structures and evaluate its ability to meet its future debt service, capital expenditures and working capital requirements. Chemed’s EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. A reconciliation of Chemed’s net income to its adjusted EBITDA is presented in the tables following the text of this press release.

Forward-Looking Statements

Certain statements contained in this press release and the accompanying tables are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "hope," "anticipate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Chemed does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These statements are based on current expectations and assumptions and involve various risks and uncertainties, which could cause Chemed's actual results to differ from those expressed in such forward-looking statements. These risks and uncertainties arise from, among other things, possible changes in regulations governing the hospice care or plumbing and drain cleaning industries; periodic changes in reimbursement levels and procedures under Medicare and Medicaid programs; difficulties predicting patient length of stay and estimating potential Medicare reimbursement obligations; challenges inherent in Chemed's growth strategy; the current shortage of qualified nurses, other healthcare professionals and licensed plumbing and drain cleaning technicians; Chemed’s dependence on patient referral sources; and other factors detailed under the caption "Description of Business by Segment" or "Risk Factors" in Chemed’s most recent report on form 10-Q or 10-K and its other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such forward-looking statements and there are no assurances that the matters contained in such statements will be achieved.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)(unaudited)
					Three Months Ended March 31,
					2008			2007
Service revenues and sales					$	285,268		$	270,439
Cost of services provided and goods sold (aa)						205,812			188,247
Selling, general and administrative expenses (aa)						42,727			48,070
Depreciation						5,438			4,715
Amortization						1,450			1,315
Other operating expense/(income) (aa)						-			(1,138	)
	Total costs and expenses					255,427			241,209
	Income from operations					29,841			29,230
Interest expense						(1,597	)		(3,742	)
Other income--net						(1,189	)		869
	Income before income taxes					27,055			26,357
Income taxes						(10,235	)		(10,136	)
Net Income					$	16,820		$	16,221
Earnings Per Share (aa)
	Net income				$	0.70		$	0.63
	Average number of shares outstanding					23,873			25,716
Diluted Earnings Per Share (aa)
	Net income				$	0.69		$	0.62
	Average number of shares outstanding					24,285			26,162
(aa)		Included in the results of operations are the following credits/(charges) which may not be indicative of ongoing operations (in thousands, except per share data):
					Three Months Ended March 31,
					2008			2007
		Cost of services provided and goods sold
			Unreserved prior year's insurance claim		$	(597	)	$	-
		Selling, general and administrative expenses
			Stock option expense			(1,391	)		(585	)
			Adjustments/(expenses) associated with OIG investigation			15			(66	)
			Long-term incentive compensation			-			(5,447	)
			Other			-			467
		Other operating expenses/(income)
			Gain on sale of property			-			1,138
				Pretax impact on earnings		(1,973	)		(4,493	)
		Income tax benefit on the above				740			1,687
		Income tax credit related to prior years				322			-
				Aftertax impact on earnings	$	(911	)	$	(2,806	)

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
(in thousands, except per share data)(unaudited)
					March 31,
					2008			2007 (bb)
Assets
	Current assets
		Cash and cash equivalents			$	29,704		$	30,137
		Accounts receivable less allowances				87,004			83,280
		Inventories				7,439			6,752
		Current deferred income taxes				14,996			21,595
		Prepaid expenses and other current assets				9,035			9,110
			Total current assets			148,178			150,874
	Investments of deferred compensation plans held in trust					29,524			27,736
	Notes receivable					-			14,701
	Properties and equipment, at cost less accumulated depreciation					72,910			69,295
	Identifiable intangible assets less accumulated amortization					64,168			68,205
	Goodwill					438,656			435,040
	Other assets					15,467			16,194
				Total Assets	$	768,903		$	782,045
Liabilities
	Current liabilities
		Accounts payable			$	46,450		$	53,341
		Current portion of long-term debt				10,166			164
		Income taxes				10,100			9,410
		Accrued insurance				37,600			39,889
		Accrued compensation				31,195			29,110
		Other current liabilities				14,474			26,653
			Total current liabilities			149,985			158,567
	Deferred income taxes					5,465			24,970
	Long-term debt					212,070			150,235
	Deferred compensation liabilities					29,653			27,157
	Other liabilities					5,540			5,382
				Total Liabilities		402,713			366,311
Stockholders' Equity
	Capital stock					29,379			29,036
	Paid-in capital					271,296			260,641
	Retained earnings					293,707			234,914
	Treasury stock, at cost					(230,594	)		(111,293	)
	Deferred compensation payable in Company stock					2,402			2,436
				Total Stockholders' Equity		366,190			415,734
				Total Liabilities and Stockholders' Equity	$	768,903		$	782,045
Book Value Per Share					$	15.43		$	16.43
(bb) Reclassified to conform to 2008 presentation.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)(unaudited)
						Three Months Ended
						March 31,
						2008			2007 (bb)
Cash Flows from Operating Activities
	Net income					$	16,820		$	16,221
	Adjustments to reconcile net income to net cash provided/(used) by operating activities:
			Depreciation and amortization				6,888			6,030
			Provision for uncollectible accounts receivable				2,002			2,084
			Provision for deferred income taxes				(1,126	)		(345	)
			Amortization of debt issuance costs				254			455
			Noncash long-term incentive compensation				-			4,719
			Changes in operating assets and liabilities, excluding amounts acquired in business combinations:
					Decrease in accounts receivable		12,112			5,275
					Increase in inventories		(843	)		(174	)
					Decrease in prepaid expenses and other current assets
							1,488			858
					Decrease in accounts payable and other current liabilities		(5,679	)		(9,091	)
					Increase in income taxes		6,677			9,538
					Increase in other assets		(293	)		(2,102	)
					Increase in other liabilities		532			2,218
			Excess tax benefit on share-based compensation				(825	)		(611	)
			Other sources/(uses)				1,524			(375	)
				Net cash provided by operating activities			39,531			34,700
Cash Flows from Investing Activities
	Net proceeds/(uses) from the disposition of discontinued operations						9,556			(3,876	)
	Capital expenditures						(3,891	)		(5,764	)
	Proceeds from sales of property and equipment						19			2,975
	Other uses						(122	)		(361	)
				Net cash provided/(used) by investing activities			5,562			(7,026	)
Cash Flows from Financing Activities
	Purchases of treasury stock						(16,263	)		(24,199	)
	Repayment of long-term debt						(2,595	)		(141	)
	Dividends paid						(1,449	)		(1,555	)
	Decrease in cash overdrafts payable						(963	)		(1,608	)
	Excess tax benefit on share-based compensation						825			611
	Other sources						68			81
				Net cash used by financing activities			(20,377	)		(26,811	)
Increase in Cash and Cash Equivalents							24,716			863
Cash and cash equivalents at beginning of year							4,988			29,274
Cash and cash equivalents at end of period							29,704		$	30,137
(bb)		Reclassified to conform to 2008 presentation.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(in thousands)(unaudited)
												Chemed
			VITAS			Roto-Rooter			Corporate			Consolidated
	2008
	Service revenues and sales		$	198,585		$	86,683		$	-		$	285,268
	Cost of services provided and goods sold			158,803			47,009			-			205,812
	Selling, general and administrative expenses (a)			16,147			23,771			2,809			42,727
	Depreciation			3,280			2,082			76			5,438
	Amortization			996			13			441			1,450
		Total costs and expenses		179,226			72,875			3,326			255,427
		Income/(loss) from operations		19,359			13,808			(3,326	)		29,841
	Interest expense			(51	)		(83	)		(1,463	)		(1,597	)
	Intercompany interest income/(expense)			1,365			1,042			(2,407	)		-
	Other income—net			23			28			(1,240	)		(1,189	)
		Income/(loss) before income taxes		20,696			14,795			(8,436	)		27,055
	Income taxes (a)			(7,398	)		(5,700	)		2,863			(10,235	)
		Net income/(loss)	$	13,298			9,095			(5,573	)		16,820
	2007 (f)
	Service revenues and sales		$	184,049		$	86,390		$	-		$	270,439
	Cost of services provided and goods sold			142,095			46,152			-			188,247
	Selling, general and administrative expenses (b)			15,904			23,542			8,624			48,070
	Depreciation			2,538			2,101			76			4,715
	Amortization			996			15			304			1,315
	Other operating expense/(income) (b)			-			-			(1,138	)		(1,138	)
		Total costs and expenses		161,533			71,810			7,866			241,209
		Income/(loss) from operations		22,516			14,580			(7,866	)		29,230
	Interest expense			(36	)		(83	)		(3,623	)		(3,742	)
	Intercompany interest income/(expense)			1,712			1,156			(2,868	)		-
	Other income—net			(88	)		50			907			869
		Income/(loss) before income taxes		24,104			15,703			(13,450	)		26,357
	Income taxes (b)			(9,117	)		(6,197	)		5,178			(10,136	)
		Net income/(loss)	$	14,987		$	9,506		$	(8,272	)	$	16,221
	The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING SUMMARY OF EBITDA
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(in thousands)(unaudited)
													Chemed
				VITAS			Roto-Rooter			Corporate			Consolidated
	2008
	Net income/(loss)			$	13,298		$	9,095		$	(5,573	)	$	16,820
	Add/(deduct):
		Interest expense			51			83			1,463			1,597
		Income taxes			7,398			5,700			(2,863	)		10,235
		Depreciation			3,280			2,082			76			5,438
		Amortization			996			13			441			1,450
			EBITDA		25,023			16,973			(6,456	)		35,540
	Add/(deduct):
		Unreserved insurance claim			-			597			-			597
		Legal expenses of OIG investigation			(15	)		-			-			(15	)
		Stock option expense			-			-			1,391			1,391
		Advertising cost adjustment (c)			-			(570	)		-			(570	)
		Interest income			(38	)		(18	)		(281	)		(337	)
		Intercompany interest income/(expense)			(1,365	)		(1,042	)		2,407			-
			Adjusted EBITDA	$	23,605		$	15,940		$	(2,939	)	$	36,606
	2007 (f)
	Net income/(loss)			$	14,987		$	9,506		$	(8,272	)	$	16,221
	Add/(deduct):
		Interest expense			36			83			3,623			3,742
		Income taxes			9,117			6,197			(5,178	)		10,136
		Depreciation			2,538			2,101			76			4,715
		Amortization			996			15			304			1,315
			EBITDA		27,674			17,902			(9,447	)		36,129
	Add/(deduct):
		Long-term incentive compensation			-			-			5,447			5,447
		Gain on sale of property			-			-			(1,138	)		(1,138	)
		Legal expenses of OIG investigation			66			-			-			66
		Stock option expense			-			-			585			585
		Advertising cost adjustment (c)			-			(297	)		-			(297	)
		Interest income			(13	)		(59	)		(695	)		(767	)
		Intercompany interest income/(expense)			(1,712	)		(1,156	)		2,868			-
		Other			-			-			(467	)		(467	)
			Adjusted EBITDA	$	26,015		$	16,390		$	(2,847	)	$	39,558
	The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
RECONCILIATION OF ADJUSTED NET INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(in thousands, except per share data)(unaudited)
		2008			2007
Net income as reported		$	16,820		$	16,221
Add/(deduct):
	Aftertax cost of long-term incentive compensation		-			3,414
	Aftertax cost of legal expenses/(adjustments) of OIG investigation		(9	)		41
	Aftertax stock option expense		884			371
	Aftertax gain on sale of property		-			(724	)
	Aftertax other		-			(296	)
	Income tax credit related to prior years		(322	)		-
	Aftertax unreserved insurance cost		358			-
Adjusted Net Income		$	17,731		$	19,027
Earnings Per Share As Reported
	Net Income	$	0.70		$	0.63
	Average number of shares outstanding		23,873			25,716
Diluted Earnings Per Share As Reported
	Net Income	$	0.69		$	0.62
	Average number of shares outstanding		24,285			26,162
Adjusted Earnings Per Share
	Net Income	$	0.74		$	0.74
	Average number of shares outstanding		23,873			25,716
Adjusted Diluted Earnings Per Share
	Net Income	$	0.73		$	0.73
	Average number of shares outstanding		24,285			26,162
The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
OPERATING STATISTICS FOR VITAS SEGMENT
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(unaudited)
				2008			2007
OPERATING STATISTICS
	Net revenue ($000) (d)
		Homecare		$	141,617		$	131,548
		Inpatient			25,971			23,462
		Continuous care			30,997			28,567
			Total before Medicare cap allowance		198,585		$	183,577
		Medicare cap allowance			-			472
			Total	$	198,585		$	184,049
	Net revenue as a percent of total before Medicare cap allowance
		Homecare			71.3	%		71.6	%
		Inpatient			13.1			12.8
		Continuous care			15.6			15.6
			Total before Medicare cap allowance		100.0			100.0
		Medicare cap allowance			-			0.3
			Total		100.0	%		100.3	%
	Average daily census ("ADC") (days)
		Homecare			7,154			6,786
		Nursing home			3,548			3,574
			Routine homecare		10,702			10,360
		Inpatient			453			426
		Continuous care			536			523
			Total		11,691			11,309
	Total Admissions				15,212			14,110
	Total Discharges				14,992			14,051
	Average length of stay (days)				71.5			76.9
	Median length of stay (days)				13.0			13.0
	ADC by major diagnosis
		Neurological			32.5	%		33.3	%
		Cancer			20.0			19.7
		Cardio			13.0			14.6
		Respiratory			6.9			7.0
		Other			27.6			25.4
			Total		100.0	%		100.0	%
	Admissions by major diagnosis
		Neurological			19.0	%		18.9	%
		Cancer			33.4			33.6
		Cardio			11.9			13.3
		Respiratory			8.5			7.8
		Other			27.2			26.4
			Total		100.0	%		100.0	%
	Direct patient care margins (e)
		Routine homecare			49.5	%		50.8	%
		Inpatient			19.3			20.1
		Continuous care			16.5			20.0
	Homecare margin drivers (dollars per patient day)
		Labor costs		$	52.26		$	49.12
		Drug costs			7.49			8.18
		Home medical equipment			6.17			5.75
		Medical supplies			2.57			2.17
	Inpatient margin drivers (dollars per patient day)
		Labor costs		$	266.18		$	252.42
	Continuous care margin drivers (dollars per patient day)
		Labor costs		$	509.62		$	464.54
	Bad debt expense as a percent of revenues				0.9	%		0.9	%
	Accounts receivable -- days of revenue outstanding				45.5			38.1
	The "Footnotes to Financial Statements" are integral parts of this financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES
FOOTNOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(unaudited)
(a)	Included in the results of operations for the three months ended March 31, 2008 are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands):
				VITAS		Roto-Rooter		Corporate		Consolidated
	Cost of services provided and goods sold
		Unreserved prior year's insurance claim		$	-	$	(597)	$	-	$	(597)
	Selling, general and administrative expenses
		Stock option expense			-		-		(1,391)		(1,391)
		Adjustments/ (expenses) associated with OIG investigation			15		-		-		15
			Pretax impact on earnings		15		(597)		(1,391)		(1,973)
	Income tax benefit/(charge) on the above				(6)		239		507		740
	Income tax credit related to prior years				322		-		-		322
			Aftertax impact on earnings	$	331	$	(358)	$	(884)	$	(911)
(b)	Included in the results of operations for the three months ended March 31, 2007 are the following significant credits/(charges) which may not be indicative of ongoing operations (in thousands):
				VITAS		Corporate		Consolidated
	Selling, general and administrative expenses
		Long-term incentive compensation		$	-	$	(5,447)	$	(5,447)
		Costs associated with OIG investigation			(66)		-		(66)
		Stock option expense			-		(585)		(585)
		Other			-		467		467
	Other operating expenses/(income)
		Gain on sale of property			-		1,138		1,138
			Pretax impact on earnings		(66)		(4,427)		(4,493)
	Income tax benefit/(charge) on the above				25		1,662		1,687
			Aftertax impact on earnings	$	(41)	$	(2,765)	$	(2,806)
(c)	Under Generally Accepted Accounting Principles ("GAAP"), the Roto-Rooter segment expenses all advertising, including the cost of telephone directories, immediately upon the initial release of the advertising. Telephone directories are generally in circulation 12 months. If a directory is in circulation for a time period greater or less than 12 months, the publisher adjusts the directory billing for the change in billing period. The timing of when a telephone directory is published can and does fluctuate significantly on a quarterly basis. This "direct expensing" results in significant fluctuations in quarterly advertising expense. In the first quarters of 2008 and 2007, GAAP advertising expense for Roto-Rooter totaled $5,456,000 and $5,193,000, respectively. If the expense of the telephone directories were spread over the periods they are in circulation, advertising expense for the first quarters of 2008 and 2007 would total $6,026,000 and $5,490,000, respectively.
(d)	VITAS has 5 large (greater than 450 ADC), 17 medium (greater than 200 but less than 450 ADC) and 21 small (less than 200 ADC) hospice programs. There is one program continuing at March 31, 2008 with Medicare cap cushion of less than 10% for the 2008 measurement period.
(e)	Amounts exclude indirect patient care and administrative costs, as well as Medicare Cap billing limitation.
(f)	Reclassified to conform to 2008 presentation.

CONTACT:
Chemed Corporation
David P. Williams, 513-762-6901