Note 6 - Business Segments

9 Months Ended

Sep. 30, 2025

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 including pretax earnings 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 September 30, 2025
	Inpatient Services			Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	331,349		$	39,640	$	-		$	370,989
Other revenues		393			-		11,279			11,672
Net operating revenues		331,742			39,640		11,279			382,661
Costs and expenses:
Salaries, wages, and benefits		195,745			23,788		13,643			233,176
Other operating		86,745			6,664		3,195			96,604
Rent		8,823			601		1,921			11,345
Depreciation and amortization		10,219			141		798			11,158
Total costs and expenses		301,532			31,194		19,557			352,283
Income/(loss) from operations		30,210			8,446		(8,278	)		30,378
Non-operating income		-			-		4,660			4,660
Interest expense		(1,456	)		-		-			(1,456	)
Unrealized gains on marketable equity securities		-			-		20,827			20,827
Income before income taxes	$	28,754		$	8,446	$	17,209		$	54,409

	Three Months Ended September 30, 2024
	Inpatient Services			Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	293,026		$	35,648	$	-		$	328,674
Other revenues		370			-		11,154			11,524
Net operating revenues and grant income		293,396			35,648		11,154			340,198
Costs and expenses:
Salaries, wages, and benefits		175,241			21,456		16,698			213,395
Other operating		72,384			6,612		3,513			82,509
Rent		8,422			602		1,862			10,886
Depreciation and amortization		9,632			172		815			10,619
Total costs and expenses		265,679			28,842		22,888			317,409
Income/(loss) from operations		27,717			6,806		(11,734	)		22,789
Non-operating income		-			-		4,224			4,224
Interest expense		(1,742	)		-		-			(1,742	)
Unrealized gains on marketable equity securities		-			-		32,767			32,767
Income before income taxes	$	25,975		$	6,806	$	25,257		$	58,038

	Nine Months Ended September 30, 2025
	Inpatient Services			Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	981,838		$	114,107	$	-		$	1,095,945
Other revenues		1,197			-		34,126			35,323
Net operating revenues		983,035			114,107		34,126			1,131,268
Costs and expenses:
Salaries, wages, and benefits		578,824			69,375		39,641			687,840
Other operating		252,064			20,969		7,971			281,004
Rent		26,486			1,790		5,762			34,038
Depreciation and amortization		30,380			402		2,369			33,151
Total costs and expenses		887,754			92,536		55,743			1,036,033
Income/(loss) from operations		95,281			21,571		(21,617	)		95,235
Non-operating income		-			-		13,871			13,871
Interest expense		(5,555	)		-		-			(5,555	)
Unrealized gains on marketable equity securities		-			-		26,748			26,748
Income before income taxes	$	89,726		$	21,571	$	19,002		$	130,299

	Nine Months Ended September 30, 2024
	Inpatient Services			Homecare and Hospice		All Other			Total
Revenues:
Net patient revenues	$	790,664		$	103,751	$	-		$	894,415
Other revenues		710			-		33,462			34,172
Government stimulus income		-			-		9,445			9,445
Net operating revenues and grant income		791,374			103,751		42,907			938,032
Costs and expenses:
Salaries, wages, and benefits		474,190			63,761		38,658			576,609
Other operating		207,883			18,977		11,232			238,092
Rent		24,795			1,736		5,273			31,804
Depreciation and amortization		27,646			545		2,352			30,543
Total costs and expenses		734,514			85,019		57,515			877,048
Income/(loss) from operations		56,860			18,732		(14,608	)		60,984
Non-operating income		-			-		14,865			14,865
Interest expense		(1,788	)		-		-			(1,788	)
Unrealized gains on marketable equity securities		-			-		56,290			56,290
Income before income taxes	$	55,072		$	18,732	$	56,547		$	130,351