Equity Method Investments

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

The Company’s equity method investments consist principally of minority ownership interests in rehabilitation businesses. Equity method investments of $292.6 million and $316.0 million are presented as part of other assets in the consolidated balance sheets as of December 31, 2022 and 2023, respectively. At December 31, 2023, these businesses primarily consist of the following ownership interests:

BIR JV, LLP	49.0	%
OHRH, LLC	49.0	%
GlobalRehab—Scottsdale, LLC	49.0	%
ES Rehabilitation, LLC	49.0	%
BHSM Rehabilitation, LLC	49.0	%
RSH Property Ventures, LLC	50.0	%

The Company provides contracted services, principally employee leasing services, and charges management fees to related parties affiliated through its equity method investments. Revenue generated from contracted services provided and management fees charged to related parties affiliated through the Company’s equity method investments was $332.0 million, $374.1 million, and $402.8 million for the years ended December 31, 2021, 2022, and 2023, respectively.

The Company had receivables from related parties affiliated through its equity method investments of $16.3 million and $4.3 million, which are included as part of other current assets and other assets in the consolidated balance sheet, respectively, as of December 31, 2022. The Company has receivables from related parties of $18.2 million and $4.5 million, which are included as part of other current assets and other assets in the consolidated balance sheet, respectively, as of December 31, 2023.

The Company had liabilities for the operating cash it holds on behalf of certain rehabilitation businesses in which it has an equity method investment. These liabilities were $37.0 million and $66.3 million as of December 31, 2022 and 2023, respectively, and are included as part of accrued other in the consolidated balance sheets.

Summarized combined financial information of the rehabilitation businesses in which the Company has a minority ownership interest is as follows:

	December 31,
	2022		2023
	(in thousands)
Current assets	$	195,712	$	229,920
Non-current assets	381,533		523,762
Total assets	$	577,245	$	753,682
Current liabilities	$	82,626	$	91,614
Non-current liabilities	108,629		225,209
Equity	385,990		436,859
Total liabilities and equity	$	577,245	$	753,682

	For the Year Ended December 31,
	2021		2022		2023
	(in thousands)
Revenues	$	587,445	$	624,348	$	702,040
Cost of services and other operating expenses	503,880		566,014		621,107
Net income	87,528		57,811		81,122