Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s reportable segments consist of the critical illness recovery hospital segment, rehabilitation hospital segment, outpatient rehabilitation segment, and Concentra segment. Other activities include the Company’s corporate shared services, certain investments, and employee leasing services with non-consolidating subsidiaries.

The Company evaluates the performance of its segments based on Adjusted EBITDA. Adjusted EBITDA is defined as earnings excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries. The Company has provided additional information regarding its reportable segments, such as total assets, which contributes to the understanding of the Company and provides useful information to the users of the consolidated financial statements.

The following tables summarize selected financial data for the Company’s reportable segments.

	Three Months Ended March 31,
	2021		2022
	(in thousands)
Revenue:
Critical illness recovery hospital	$	594,872	$	601,755
Rehabilitation hospital	207,804		220,634
Outpatient rehabilitation	251,961		271,940
Concentra	422,840		423,423
Other	68,986		81,795
Total Company	$	1,546,463	$	1,599,547
Adjusted EBITDA:
Critical illness recovery hospital	$	113,272	$	35,967
Rehabilitation hospital	50,534		42,379
Outpatient rehabilitation	26,329		26,596
Concentra	82,015		89,469
Other(1)	(13,809)		(30,564)
Total Company	$	258,341	$	163,847
Total assets:
Critical illness recovery hospital	$	2,233,067	$	2,367,490
Rehabilitation hospital	1,188,387		1,187,118
Outpatient rehabilitation	1,321,268		1,350,374
Concentra	2,468,157		2,339,940
Other	709,902		291,022
Total Company	$	7,920,781	$	7,535,944
Purchases of property and equipment:
Critical illness recovery hospital	$	14,385	$	19,569
Rehabilitation hospital	665		6,274
Outpatient rehabilitation	7,335		9,414
Concentra	12,680		10,240
Other	4,654		1,348
Total Company	$	39,719	$	46,845

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(1)     For the three months ended March 31, 2021, Adjusted EBITDA included other operating income of $16.1 million related to the recognition of payments received under the Provider Relief Fund for health care related expenses and loss of revenue attributable to the coronavirus disease 2019 (“COVID-19”).

A reconciliation of Adjusted EBITDA to income before income taxes is as follows:

	Three Months Ended March 31, 2021
	Critical Illness Recovery Hospital		Rehabilitation Hospital		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Adjusted EBITDA	$	113,272	$	50,534	$	26,329	$	82,015	$	(13,809)
Depreciation and amortization	(13,050)		(7,060)		(7,191)		(19,898)		(2,421)
Stock compensation expense	—		—		—		(536)		(6,173)
Income (loss) from operations	$	100,222	$	43,474	$	19,138	$	61,581	$	(22,403)	$	202,012
Equity in earnings of unconsolidated subsidiaries											9,919
Interest income											4,749
Interest expense											(34,402)
Income before income taxes											$	182,278

	Three Months Ended March 31, 2022
	Critical Illness Recovery Hospital		Rehabilitation Hospital		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Adjusted EBITDA	$	35,967	$	42,379	$	26,596	$	89,469	$	(30,564)
Depreciation and amortization	(14,618)		(6,802)		(8,029)		(18,812)		(2,778)
Stock compensation expense	—		—		—		(535)		(8,288)
Income (loss) from operations	$	21,349	$	35,577	$	18,567	$	70,122	$	(41,630)	$	103,985
Equity in earnings of unconsolidated subsidiaries											5,397
Interest expense											(35,514)
Income before income taxes											$	73,868