Segment Information

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, as described in Note 2 of the Notes to Condensed Consolidated Financial Statements.

The following tables summarize the Company’s segment information for the three and six months ended June 30, 2017 and 2016 (amounts in thousands):



	Three Months Ended June 30, 2017
	Home health services			Hospice services			Community-based services			Facility-based services			Total
Net service revenue	$	194,061		$	38,513		10,845			$	16,791		$	260,210
Cost of service revenue	117,606			24,473			7,986			11,093			161,158
Provision for bad debts	1,652			662			99			262			2,675
General and administrative expenses	55,267			10,742			2,261			5,280			73,550
Loss on disposal of assets	1			1			—			—			2
Operating income	19,535			2,635			499			156			22,825
Interest expense	(630		)	(126		)	(42		)	(42		)	(840		)
Income before income taxes and noncontrolling interest	18,905			2,509			457			114			21,985
Income tax expense	6,757			849			180			6			7,792
Net income	12,148			1,660			277			108			14,193
Less net income attributable to noncontrolling interests	2,266			480			5			138			2,889
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	9,882		$	1,180		$	272		$	(30	)	$	11,304
Total assets	$	466,308		$	138,519		$	33,292		$	34,547		$	672,666



	Three Months Ended June 30, 2016
	Home health services			Hospice services			Community-based services			Facility-based services			Total
Net service revenue	$	163,174		$	33,905		$	10,587		$	18,365		$	226,031
Cost of service revenue	97,590			20,966			7,829			10,743			137,128
Provision for bad debts	2,618			792			216			156			3,782
General and administrative expenses	51,182			9,425			2,215			5,439			68,261
Loss on disposal of assets	706			205			46			86			1,043
Operating income	11,078			2,517			281			1,941			15,817
Interest expense	(350		)	(51		)	(23		)	(42		)	(466		)
Income before income taxes and noncontrolling interest	10,728			2,466			258			1,899			15,351
Income tax expense	2,043			789			102			662			3,596
Net income	8,685			1,677			156			1,237			11,755
Less net income (loss) attributable to noncontrolling interests	1,555			498			(14		)	252			2,291
Net income attributable to LHC Group, Inc.’s common stockholders	$	7,130		$	1,179		$	170		$	985		$	9,464
Total assets	$	429,780		$	118,353		$	33,247		$	38,265		$	619,645



	Six Months Ended June 30, 2017
	Home health services			Hospice services			Community-based services			Facility-based services			Total
Net service revenue	$	376,202		$	74,958		$	21,661		$	34,007		$	506,828
Cost of service revenue	229,692			47,746			15,934			22,156			315,528
Provision for bad debts	3,135			1,159			374			376			5,044
General and administrative expenses	109,171			21,141			4,572			10,525			145,409
Loss on disposal of assets	19			8			—			127			154
Operating income	34,185			4,904			781			823			40,693
Interest expense	(1,215		)	(243		)	(81		)	(81		)	(1,620		)
Income before income taxes and noncontrolling interest	32,970			4,661			700			742			39,073
Income tax expense	11,010			1,508			263			184			12,965
Net income	21,960			3,153			437			558			26,108
Less net income attributable to noncontrolling interests	4,294			766			13			264			5,337
Net income attributable to LHC Group, Inc.’s common stockholders	$	17,666		$	2,387		$	424		$	294		$	20,771



	Six Months Ended June 30, 2016
	Home health services			Hospice services			Community-based services			Facility-based services			Total
Net service revenue	$	324,561		$	64,729		$	21,030		$	38,263		$	448,583
Cost of service revenue	194,302			40,593			15,556			22,278			272,729
Provision for bad debts	6,073			1,567			298			445			8,383
General and administrative expenses	100,655			18,296			4,294			11,052			134,297
Loss on disposal of assets	791			324			46			86			1,247
Operating income	22,740			3,949			836			4,402			31,927
Interest expense	(1,028		)	(142		)	(65		)	(116		)	(1,351		)
Income before income taxes and noncontrolling interest	21,712			3,807			771			4,286			30,576
Income tax expense	5,893			1,209			330			1,506			8,938
Net income	15,819			2,598			441			2,780			21,638
Less net income (loss) attributable to noncontrolling interests	3,149			815			(57		)	581			4,488
Net income attributable to LHC Group, Inc.’s common stockholders	$	12,670		$	1,783		$	498		$	2,199		$	17,150