Note 6 - Business Segments

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 6 – 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 behavioral health hospitals; and (2) homecare and hospice services. These reportable operating segments are consistent with information used by the Company’s Chief Executive Officer, as chief operating decision maker (“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.

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 table sets forth the Company’s unaudited interim condensed consolidated statements of operations by business segment (in thousands):

	Three Months Ended March 31, 2024
	Inpatient Services		Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	252,254	$	33,569	$	-		$	285,823
Other revenues		15		-		11,338			11,353
Net operating revenues		252,269		33,569		11,338			297,176
Costs and expenses:
Salaries, wages, and benefits		150,890		21,009		11,239			183,138
Other operating		68,683		5,972		2,774			77,429
Rent		8,112		566		1,670			10,348
Depreciation and amortization		9,630		187		769			10,586
Interest		46		-		-			46
Total costs and expenses		237,361		27,734		16,452			281,547
Income/(loss) from operations		14,908		5,835		(5,114	)		15,629
Non-operating income		-		-		5,685			5,685
Unrealized gains on marketable equity securities		-		-		14,399			14,399
Income before income taxes	$	14,908	$	5,835	$	14,970		$	35,713

	Three Months Ended March 31, 2023
	Inpatient Services		Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	226,169	$	31,838	$	-		$	258,007
Other revenues		271		-		11,285			11,556
Net operating revenues		226,440		31,838		11,285			269,563
Costs and expenses:
Salaries, wages, and benefits		138,939		20,244		8,641			167,824
Other operating		62,264		5,499		3,726			71,489
Rent		8,168		558		1,366			10,092
Depreciation and amortization		9,117		185		746			10,048
Interest		98		-		-			98
Total costs and expenses		218,586		26,486		14,479			259,551
Income/(loss) from operations		7,854		5,352		(3,194	)		10,012
Non-operating income		-		-		4,323			4,323
Unrealized gains on marketable equity securities		-		-		1,386			1,386
Income before income taxes	$	7,854	$	5,352	$	2,515		$	15,721