Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

During the first quarter of 2015, the Company had a change in the composition of segments due to the community-based services meeting the criteria of qualitative thresholds established by ASC 280, Segment Reporting. Prior-period segment data has been restated to reflect the newly reportable segment in which community-based services were previously included in home-based services.

The Company’s reportable segments consist of home health services, hospice services, community-based services, and facility-based 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 six months ended June 30, 2015 and 2014 (amounts in thousands):

	Three Months Ended June 30, 2015
	Home health services			Hospice services			Community-based services			Facility- based services			Total
Net service revenue	$	153,272		$	18,632		$	10,312		$	17,956		$	200,172
Cost of service revenue	87,045			10,844			7,456			11,294			116,639
Provision for bad debts	3,645			299			691			170			4,805
General and administrative expenses	47,576			5,111			2,068			5,615			60,370
Operating income	15,006			2,378			97			877			18,358
Interest expense	(438		)	(61		)	(6		)	(49		)	(554		)
Income before income taxes and noncontrolling interest	14,568			2,317			91			828			17,804
Income tax expense (1)	4,740			723			215			542			6,220
Net income (loss)	9,828			1,594			(124		)	286			11,584
Less net income attributable to noncontrolling interests	2,251			253			(52		)	182			2,634
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	7,577		$	1,341		$	(72	)	$	104		$	8,950
Total assets	$	400,906		$	36,178		$	33,131		$	38,830		$	509,045

(1)  During the three months ended, June 30, 2015, the Company's internal allocation methodology for recording income tax expense was changed to record each segment's respective tax expense on pretax net income at the Company's effective tax rate of 41.0%; the change was done on a year-to-date basis. Prior to this quarter, income tax expense was allocated to each segment based on their respective percentage of equity. There is no impact on the Company's consolidated income tax expense.

	Three Months Ended June 30, 2014
	Home health services			Hospice services			Community-based services			Facility- based services			Total
Net service revenue	$	145,861		$	17,068		$	8,399		$	17,539		$	188,867
Cost of service revenue	84,278			10,151			5,945			11,153			111,527
Provision for bad debts	3,701			93			367			202			4,363
General and administrative expenses	47,661			4,789			2,065			5,208			59,723
Operating income	10,221			2,035			22			976			13,254
Interest expense	(657		)	(83		)	(7		)	(83		)	(830		)
Income before income taxes and noncontrolling interest	9,564			1,952			15			893			12,424
Income tax expense	3,405			530			31			386			4,352
Net income (loss)	6,159			1,422			(16		)	507			8,072
Less net income attributable to noncontrolling interests	1,541			335			(4		)	139			2,011
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	4,618		$	1,087		$	(12	)	$	368		$	6,061
Total assets	$	390,542		$	35,530		$	34,712		$	36,841		$	497,625

	Six Months Ended June 30, 2015
	Home health services			Hospice services			Community-based services			Facility- based services			Total
Net service revenue	$	299,864		$	35,483		$	20,085		$	37,819		$	393,251
Cost of service revenue	172,591			20,943			14,356			23,175			231,065
Provision for bad debts	8,121			646			871			426			10,064
General and administrative expenses	94,030			9,999			4,285			11,354			119,668
Operating income	25,122			3,895			573			2,864			32,454
Interest expense	(868		)	(121		)	(12		)	(98		)	(1,099		)
Income before income taxes and noncontrolling interest	24,254			3,774			561			2,766			31,355
Income tax expense	8,397			1,343			260			949			10,949
Net income	15,857			2,431			301			1,817			20,406
Less net income (loss) attributable to noncontrolling interests	3,772			499			(72		)	452			4,651
Net income attributable to LHC Group, Inc.’s common stockholders	$	12,085		$	1,932		$	373		$	1,365		$	15,755

	Six Months Ended June 30, 2014
	Home health services			Hospice services			Community-based services			Facility- based services			Total
Net service revenue	$	273,654		$	32,290		$	9,286		$	37,318		$	352,548
Cost of service revenue	160,078			19,048			6,589			23,146			208,861
Provision for bad debts	6,324			198			398			805			7,725
General and administrative expenses	91,855			9,233			2,388			10,826			114,302
Operating income (loss)	15,397			3,811			(89		)	2,541			21,660
Interest expense	(964		)	(122		)	(10		)	(122		)	(1,218		)
Income (loss) before income taxes and noncontrolling interest	14,433			3,689			(99		)	2,419			20,442
Income tax expense	5,675			876			54			670			7,275
Net income (loss)	8,758			2,813			(153		)	1,749			13,167
Less net income attributable to noncontrolling interests	2,148			536			(4		)	358			3,038
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	6,610		$	2,277		$	(149	)	$	1,391		$	10,129