Segment Information

9 Months Ended

Sep. 30, 2019

The Company's reporting segments include (1) home health services, (2) hospice services, (3) home and community-based services, (4) facility-based services and (5) healthcare innovations (“HCI”). 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.

Reportable segments have been identified based upon how management has organized the business by services provided to customers and how the chief operating decision maker manages the business and allocates resources, consistent with the criteria in ASC 280, Segment Reporting.

The following tables summarize the Company’s segment information for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands):



	Three Months Ended September 30, 2019
	Home health services			Hospice services			Home and community-based services			Facility-based services			HCI			Total
Net service revenue	$	375,599		$	62,028		$	53,411		$	28,715		$	8,746		$	528,499
Cost of service revenue	237,414			35,819			39,694			18,508			3,333			334,768
General and administrative expenses	108,318			15,218			10,809			9,498			2,986			146,829
Other intangible impairment charge	197			—			—			—			—			197
Operating income	29,670			10,991			2,908			709			2,427			46,705
Interest expense	(1,758		)	(310		)	(272		)	(174		)	(82		)	(2,596		)
Income before income taxes and noncontrolling interest	27,912			10,681			2,636			535			2,345			44,109
Income tax expense	5,900			1,689			1,299			144			476			9,508
Net income	22,012			8,992			1,337			391			1,869			34,601
Less net income (loss) attributable to non controlling interests	3,577			1,213			(180		)	(67		)	(9		)	4,534
Net income attributable to LHC Group, Inc.'s common stockholder	$	18,435		$	7,779		$	1,517		$	458		$	1,878		$	30,067
Total assets	$	1,458,991		$	235,865		$	243,779		$	88,905		$	70,324		$	2,097,864



	Three Months Ended September 30, 2018
	Home health services			Hospice services			Home and community-based services			Facility-based services			HCI			Total
Net service revenue	$	360,000		$	52,962		$	52,773		$	27,891		$	13,417		$	507,043
Cost of service revenue	222,765			34,540			39,860			20,146			4,885			322,196
General and administrative expenses	105,112			14,685			12,922			9,823			7,030			149,572
Other intangible impairment charge	345			—			—			—			—			345
Operating income (loss)	31,778			3,737			(9		)	(2,078		)	1,502			34,930
Interest expense	(2,284		)	(491		)	(163		)	(163		)	(163		)	(3,264		)
Income (loss) before income taxes and noncontrolling interest	29,494			3,246			(172		)	(2,241		)	1,339			31,666
Income tax expense (benefit)	6,209			774			(74		)	(541		)	317			6,685
Net income (loss)	23,285			2,472			(98		)	(1,700		)	1,022			24,981
Less net income (loss) attributable to noncontrolling interests	3,425			386			(87		)	27			—			3,751
Net income (loss) attributable to LHC Group, Inc.'s common stockholders	$	19,860		$	2,086		$	(11	)	$	(1,727	)	$	1,022		$	21,230
Total assets	$	1,316,792		$	203,921		$	246,963		$	61,089		$	81,999		$	1,910,764



	Nine Months Ended September 30, 2019
	Home health services			Hospice services			Home and community-based services			Facility-based services			HCI			Total
Net service revenue	$	1,113,887		$	168,821		$	157,610		$	84,391		$	24,217		$	1,548,926
Cost of service revenue	694,082			103,853			119,054			53,812			10,819			981,620
General and administrative expenses	322,115			45,167			33,004			28,010			12,338			440,634
Other intangible impairment charge	7,263			271			—			—			—			7,534
Operating income	90,427			19,530			5,552			2,569			1,060			119,138
Interest expense	(5,919		)	(976		)	(857		)	(524		)	(257		)	(8,533		)
Income before income taxes and noncontrolling interest	84,508			18,554			4,695			2,045			803			110,605
Income tax expense	17,178			3,716			1,279			297			195			22,665
Net income	67,330			14,838			3,416			1,748			608			87,940
Less net income (loss) attributable to non controlling interests	11,305			2,712			(757		)	779			(22		)	14,017
Net income attributable to LHC Group, Inc.'s common stockholder	$	56,025		$	12,126		$	4,173		$	969		$	630		$	73,923



	Nine Months Ended September 30, 2018
	Home health services			Hospice services			Home and community-based services			Facility-based services			HCI			Total
Net service revenue	$	924,463		$	146,142		$	119,617		$	86,345		$	23,554		$	1,300,121
Cost of service revenue	576,416			95,557			90,331			59,102			10,412			831,818
General and administrative expenses	277,075			43,090			28,664			29,571			12,417			390,817
Other intangible impairment charge	636			—			—			487			—			1,123
Operating income	70,336			7,495			622			(2,815		)	725			76,363
Interest expense	(5,627		)	(1,181		)	(393		)	(395		)	(320		)	(7,916		)
Income (loss) before income taxes and noncontrolling interest	64,709			6,314			229			(3,210		)	405			68,447
Income tax expense (benefit)	14,022			1,368			50			(695		)	87			14,832
Net income (loss)	50,687			4,946			179			(2,515		)	318			53,615
Less net income (loss) attributable to noncontrolling interests	9,472			1,215			(157		)	129			(66		)	10,593
Net income (loss) attributable to LHC Group, Inc.'s common stockholders	$	41,215		$	3,731		$	336		$	(2,644	)	$	384		$	43,022