Note 5 - Business Segments

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 5 – Business Segments

The Company has two reportable operating segments: (1) inpatient services, which includes the operation of skilled nursing facilities, assisted and independent living facilities, and our behavioral health hospital, and (2) homecare services. These reportable operating segments are consistent with information used by the Company’s Chief Executive Officer, as CODM, to assess performance and allocate resources.

The Company also reports an “all other” category that includes revenues from rental income, management and accounting services fees, insurance services, and costs of the corporate office. For additional information on these reportable segments see Note 1 - “Summary of Significant Accounting Policies”.

The Company’s CODM evaluates performance and allocates capital resources to each segment based on an operating model that is designed to improve the quality of patient care and profitability of the Company while enhancing long-term shareholder value. The CODM does not review assets by segment in his resource allocation and therefore, assets by segment are not disclosed below.

The following tables set forth the Company’s consolidated statements of operations by business segment (in thousands):

	Year Ended December 31, 2019
	Inpatient Services		Homecare		All Other			Total
Revenues:
Net patient revenues	$	893,201	$	54,671	$	–		$	947,872
Other revenues		910		–		47,601			48,511
Net operating revenues		894,111		54,671		47,601			996,383
Costs and Expenses:
Salaries, wages and benefits		526,430		33,037		33,364			592,831
Other operating		242,435		17,003		9,004			268,442
Facility rent		32,748		1,854		5,916			40,518
Depreciation and amortization		38,731		250		3,438			42,419
Interest		1,578		–		1,557			3,135
Total costs and expenses		841,922		52,144		53,279			947,345
Income (loss) before non-operating income		52,189		2,527		(5,678	)		49,038
Non-operating income		–		–		26,747			26,747
Unrealized gains on marketable equity securities		–		–		12,230			12,230
Income before income taxes	$	52,189	$	2,527	$	33,299		$	88,015

	Year Ended December 31, 2018
	Inpatient Services		Homecare		All Other			Total
Revenues:
Net patient revenues	$	872,912	$	59,862	$	–		$	932,774
Other revenues		2,494		–		45,081			47,575
Net operating revenues		875,406		59,862		45,081			980,349
Costs and Expenses:
Salaries, wages and benefits		513,647		33,339		35,735			582,721
Other operating		225,133		19,566		9,339			254,038
Facility rent		33,052		1,945		5,926			40,923
Depreciation and amortization		38,372		229		3,293			41,894
Interest		1,504		–		3,193			4,697
Total costs and expenses		811,708		55,079		57,486			924,273
Income (loss) before non-operating income		63,698		4,783		(12,405	)		56,076
Non-operating income		–		–		17,670			17,670
Unrealized gains on marketable securities		–		–		1,138			1,138
Income before income taxes	$	63,698	$	4,783	$	6,403		$	74,884

	Year Ended December 31, 2017
	Inpatient Services		Homecare		All Other			Total
Revenues:
Net patient revenues	$	853,662	$	63,080	$	–		$	916,742
Other revenues		663		–		46,490			47,153
Net operating revenues		854,325		63,080		46,490			963,895
Costs and Expenses:
Salaries, wages and benefits		501,510		33,059		37,474			572,043
Other operating		221,414		20,855		7,564			249,833
Facility rent		32,744		1,980		5,643			40,367
Depreciation and amortization		38,246		177		4,229			42,652
Interest		1,719		–		3,171			4,890
Total costs and expenses		795,633		56,071		58,081			909,785
Income (loss) before non-operating income		58,692		7,009		(11,591	)		54,110
Non-operating income		–		–		20,439			20,439
Income before income taxes	$	58,692	$	7,009	$	8,848		$	74,549