Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Percentage of Net Service Revenue Earned by Type of Ownership or Relationship with Operating Entity

The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity for the periods presented for the years ending December 31:



Ownership type	2018		2017		2016
Wholly owned subsidiaries	59.2	%	51.1	%	57.1	%
Equity joint ventures	40.0		46.8		41.2
Managed or licensed	0.8		2.1		1.7
	100.0	%	100.0	%	100.0	%

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Adoption of the standard impacted the Company's previously reported results as follows (amounts in thousands):



	As previously reported			Adjustment for ASU 2014-09			As adjusted
	As of December 31, 2017
Consolidated Balance Sheets:
Patients accounts receivable	$	161,898		$	—		$	161,898
Allowance for uncollectible accounts	23,556			(23,556		)	—
	For the year ended December 31, 2017
Consolidated Statements of Income:
Net service revenue	$	1,072,086		$	(9,484	)	$	1,062,602
Provision for bad debts	(9,484		)	9,484			—
Net income attributable to LHC Group, Inc.'s common stockholders	50,112			—			50,112
Consolidated Statements of Cash Flows:
Provision for bad debts	9,484			(9,484		)	—
Changes in operating assets and liabilities, net of acquisitions: Receivables	(36,390		)	9,484			(26,906		)
	For the year ended December 31, 2016
Consolidated Statements of Income:
Net service revenue	$	914,823		$	(14,790	)	$	900,033
Provision for bad debts	(14,790		)	14,790			—
Net income attributable to LHC Group, Inc.'s common stockholders	36,583			—			36,583
Consolidated Statements of Cash Flows:
Provision for bad debts	14,790			(14,790		)	—
Changes in operating assets and liabilities, net of acquisitions: Receivables	(28,873		)	14,790			(14,083		)

Percentage of Net Service Revenue Earned by Category of Payor

The following table sets forth the percentage of net service revenue earned by category of payor for the years ending December 31:



	2018		2017		2016
Home health:
Medicare	71.8	%	72.6	%	76.8	%
Medicaid	1.3		1.1		1.0
Managed Care, Commercial, and Other	26.9		26.3		22.2
	100.0	%	100.0	%	100.0	%
Hospice:
Medicare	90.7	%	92.9	%	94.8	%
Medicaid	0.4		0.3		0.9
Managed Care, Commercial, and Other	8.9		6.8		4.3
	100.0	%	100.0	%	100.0	%
Home and Community-Based:
Medicaid	23.9	%	18.9	%	15.2	%
Managed Care, Commercial, and Other	76.1		81.1		84.8
	100.0	%	100.0	%	100.0	%
Facility-Based:
Medicare	59.7	%	63.7	%	72.5	%
Managed Care, Commercial, and Other	40.3		36.3		27.5
	100.0	%	100.0	%	100.0	%
Healthcare Innovations:
Medicare	22.8	%	—	%	—	%
Medicaid	0.3		—		—
Managed Care, Commercial, and Other	76.9		—		—
	100.0	%	—	%	—	%

Schedules of Percentage of Patient Accounts Receivable by Payor

The following table sets forth the percentage of patient accounts receivable by payor for the years ended December 31:



	2018		2017
Medicare	51.3	%	60.8	%
Medicaid	8.6		5.8
Managed Care, Commercial, and Other	40.1		33.4
Total patient accounts receivable	100.0	%	100.0	%

Property, Plant and Equipment

The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2018 and 2017 (amounts in thousands):



	2018		2017
Land	$	6,750	$	2,033
Building and improvements	35,474		14,166
Transportation equipment	13,503		11,363
Fixed equipment	745		780
Office furniture and medical equipment	78,344		61,676
	134,816		90,018
Less accumulated depreciation	55,253		43,565
Property, building and equipment, net	$	79,563	$	46,453

Shares Used in Computation of Basic and Diluted per Share Information

The following table sets forth shares used in the computation of basic and diluted per share information for the years ended December 31, 2018, 2017 and 2016:



	2018	2017	2016
Weighted average number of shares outstanding for basic per share calculation	27,498,351	17,715,992	17,559,477
Effect of dilutive potential shares:
Options	—	—	863
Nonvested restricted stock	275,045	245,026	122,480
Adjusted weighted average shares for diluted per share calculation	27,773,396	17,961,018	17,682,820
Antidilutive shares	46,002	—	219,855