Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

During the first quarter of 2014, the Company had a change in the composition of segments due to the hospice services meeting the criteria of quantitative thresholds established by ASC 280, Segment Reporting. Prior-period segment data has been restated to reflect the newly reportable segment in which hospice services were previously included in home-based services.

The Company’s reportable segments consist of home-based services, hospice services and facility-based services. Home-based services include home nursing services and community based services. Facility-based services include long-term acute care services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The following tables summarize the Company’s segment information for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands):

	Three Months Ended September 30, 2014
	Home- Based Services			Hospice Services			Facility- Based Services			Total
Net service revenue	$	152,648		$	17,071		$	17,994		$	187,713
Cost of service revenue	91,506			10,431			11,185			113,122
Provision for bad debts	3,753			269			(48		)	3,974
General and administrative expenses	48,591			4,756			5,085			58,432
Operating income	8,798			1,615			1,772			12,185
Interest expense	(515		)	(64		)	(64		)	(643		)
Non-operating income	190			35			10			235
Income before income taxes and noncontrolling interest	8,473			1,586			1,718			11,777
Income tax expense	3,034			521			369			3,924
Net income	5,439			1,065			1,349			7,853
Less net income attributable to noncontrolling interests	1,185			292			202			1,679
Net income attributable to LHC Group, Inc.’s common stockholders	$	4,254		$	773		$	1,147		$	6,174
Total assets	$	424,780		$	34,622		$	36,229		$	495,631

	Three Months Ended September 30, 2013
	Home- Based Services			Hospice Services			Facility- Based Services			Total
Net service revenue	$	132,739		$	14,171		$	17,838		$	164,748
Cost of service revenue	78,307			8,775			10,884			97,966
Provision for bad debts	2,333			318			57			2,708
General and administrative expenses	44,002			3,967			5,078			53,047
Operating income	8,097			1,111			1,819			11,027
Interest expense	(348		)	(39		)	(43		)	(430		)
Non-operating income	33			3			18			54
Income before income taxes and noncontrolling interest	7,782			1,075			1,794			10,651
Income tax expense	3,028			394			360			3,782
Net income	4,754			681			1,434			6,869
Less net income attributable to noncontrolling interests	1,077			202			293			1,572
Net income attributable to LHC Group, Inc.’s common stockholders	$	3,677		$	479		$	1,141		$	5,297
Total assets	$	351,804		$	27,536		$	34,693		$	414,033

	Nine Months Ended September 30, 2014
	Home- Based Services			Hospice Services			Facility- Based Services			Total
Net service revenue	$	435,588		$	49,361		$	55,312		$	540,261
Cost of service revenue	258,173			29,479			34,331			321,983
Provision for bad debts	10,475			467			757			11,699
General and administrative expenses	142,747			13,994			15,917			172,658
Operating income	24,193			5,421			4,307			33,921
Interest expense	(1,489		)	(186		)	(186		)	(1,861		)
Non-operating income	103			40			16			159
Income before income taxes and noncontrolling interest	22,807			5,275			4,137			32,219
Income tax expense	8,763			1,397			1,039			11,199
Net income	14,044			3,878			3,098			21,020
Less net income attributable to noncontrolling interests	3,329			828			560			4,717
Net income attributable to LHC Group, Inc.’s common stockholders	$	10,715		$	3,050		$	2,538		$	16,303

	Nine Months Ended September 30, 2013
	Home- Based Services			Hospice Services			Facility- Based Services			Total
Net service revenue	$	394,453		$	40,988		$	57,562		$	493,003
Cost of service revenue	229,466			25,458			33,299			288,223
Provision for bad debts	8,009			787			1,037			9,833
General and administrative expenses	131,048			11,860			15,919			158,827
Operating income	25,930			2,883			7,307			36,120
Interest expense	(1,268		)	(136		)	(151		)	(1,555		)
Non-operating income	94			21			69			184
Income before income taxes and noncontrolling interest	24,756			2,768			7,225			34,749
Income tax expense	9,993			1,069			1,174			12,236
Net income	14,763			1,699			6,051			22,513
Less net income attributable to noncontrolling interests	3,417			677			1,046			5,140
Net income attributable to LHC Group, Inc.’s common stockholders	$	11,346		$	1,022		$	5,005		$	17,373