Note 6 - Business Segments

12 Months Ended

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

	Year Ended December 31, 2024
	Inpatient Services		Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	1,111,300	$	140,459	$	–		$	1,251,759
Other revenues		1,315		–		44,863			46,178
Government grant income		–		–		9,445			9,445
Net operating revenues and grant income		1,112,615		140,459		54,308			1,307,382
Costs and Expenses:
Salaries, wages and benefits		668,029		85,712		57,189			810,930
Other operating		280,867		25,927		14,596			321,390
Facility rent		33,787		2,295		7,100			43,182
Depreciation and amortization		37,988		737		3,260			41,985
Interest		4,135		–		–			4,135
Total costs and expenses		1,024,806		114,671		82,145			1,221,622
Income (loss) before non-operating income		87,809		25,788		(27,837	)		85,760
Non-operating income		–		–		19,690			19,690
Unrealized gains on marketable equity securities		–		–		30,958			30,958
Income before income taxes	$	87,809	$	25,788	$	22,811		$	136,408

	Year Ended December 31, 2023
	Inpatient Services		Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	956,077	$	131,537	$	–		$	1,087,614
Other revenues		1,141		–		52,789			53,930
Net operating revenues		957,218		131,537		52,789			1,141,544
Costs and Expenses:
Salaries, wages and benefits		589,279		80,610		42,455			712,344
Other operating		254,559		23,529		10,095			288,183
Facility rent		32,542		2,172		6,811			41,525
Depreciation and amortization		38,172		786		3,076			42,034
Interest		324		–		–			324
Total costs and expenses		914,876		107,097		62,437			1,084,410
Income (loss) before non-operating income		42,342		24,440		(9,648	)		57,134
Non-operating income		–		–		16,660			16,660
Unrealized gains on marketable equity securities		–		–		14,944			14,944
Income before income taxes	$	42,342	$	24,440	$	21,956		$	88,738

	Year Ended December 31, 2022
	Inpatient Services		Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	900,231	$	128,854	$	–		$	1,029,085
Other revenues		136		–		45,060			45,196
Government grant income		11,457		–		–			11,457
Net operating revenues and grant income		911,824		128,854		45,060			1,085,738
Costs and Expenses:
Salaries, wages and benefits		580,707		77,688		27,774			686,169
Other operating		251,355		26,319		11,698			289,372
Facility rent		32,526		2,327		6,124			40,977
Depreciation and amortization		36,522		691		3,276			40,489
Interest		563		–		–			563
Recovery of assets		–		–		(3,728	)		(3,728	)
Total costs and expenses		901,673		107,025		45,144			1,053,842
Income before non-operating income		10,151		21,829		(84	)		31,896
Non-operating income		–		–		11,141			11,141
Unrealized losses on marketable equity securities		–		–		(15,806	)		(15,806	)
Income (loss) before income taxes	$	10,151	$	21,829	$	(4,749	)	$	27,231