Acquisitions and Disposals

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions and Disposals

3. Acquisitions and Disposals

The Company acquired the majority-ownership of one home health agency and one community-based services agency during the three months ended March 31, 2015. The total aggregate purchase price for the Company’s acquisition was $0.6 million, which was paid in cash. The purchase price was determined based on the Company’s analysis of comparable acquisitions and the target market’s potential future cash flows.

Acquired intangible assets consist of a Medicare license, Medicaid license, and trade name. The fair value of the acquired intangible assets was $0.4 million, which is preliminary pending the final valuation of those assets.

The Company's home health services segment and community-based services segment each recognized goodwill of $0.2 million. Goodwill generated from the acquisitions was recognized based on the expected contributions of each acquisition to the overall corporate strategy. The Company expects its portion of goodwill to be fully tax deductible. The acquisition was accounted for under the acquisition method of accounting, and, accordingly, the accompanying interim financial information includes the results of operations of the acquired entity from the date of acquisition.