Identifiable Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Gross carrying amount and accumulated amortization of identifiable intangible assets

The gross carrying amount and accumulated amortization of each category of identifiable intangible assets as of September 30, 2013 and December 31, 2012 were as follows (in thousands):

	September 30, 2013									December 31, 2012									Useful Life
	Home Health			Hospice			Total			Home Health			Hospice			Total
Amortized intangible assets:
Covenants not to compete	$	1,667		$	15,685		$	17,352		$	1,667		$	15,685		$	17,352		2-5 Years
Less: accumulated amortization	(1,496		)	(15,678		)	(17,174		)	(1,449		)	(14,113		)	(15,562		)
Net covenants not to compete	171			7			178			218			1,572			1,790
Customer relationships	27,196			910			28,106			27,196			910			28,106			5-10 Years
Less: accumulated amortization	(19,411		)	(458		)	(19,869		)	(17,651		)	(390		)	(18,041		)
accumulated impairment losses	(27		)	—			(27		)	(27		)	—			(27		)
Net customer relationships	7,758			452			8,210			9,518			520			10,038
Amortized intangible assets	7,929			459			8,388			9,736			2,092			11,828
Indefinite-lived intangible assets:
Medicare licenses and certificates of need	227,799			102,239			330,038			225,227			101,749			326,976
Less: accumulated impairment losses	(144,672		)	(519		)	(145,191		)	(144,672		)	(519		)	(145,191		)
Net Medicare licenses and certificates of need	83,127			101,720			184,847			80,555			101,230			181,785
Total identifiable intangible assets	$	91,056		$	102,179		$	193,235		$	90,291		$	103,322		$	193,613

Gross carrying amount of goodwill

The gross carrying amount of goodwill as of September 30, 2013 and December 31, 2012 and activity during the first nine months of 2013 were as follows (in thousands):

	Goodwill, Gross						Accumulated Impairment Losses
	Home Health		Hospice		Total		Home Health			Hospice			Total
Balance at December 31, 2011:	$	267,058	$	831,648	$	1,098,706	$	(263,370	)	$	(193,667	)	$	(457,037	)
Goodwill acquired during 2012	5,331		9,364		14,695		—			—			—
Balance at December 31, 2012:	272,389		841,012		1,113,401		(263,370		)	(193,667		)	(457,037		)
Goodwill acquired during 2013	2,690		182		2,872		—			—			—
Impairment losses during 2013	—		—		—		—			(220,800		)	(220,800		)
Balance at September 30, 2013:	$	275,079	$	841,194	$	1,116,273	$	(263,370	)	$	(414,467	)	$	(677,837	)

The Company expects that substantially all of the goodwill acquired, as presented in the table above, will be deductible for tax purposes.