Segment Data

6 Months Ended

Jun. 30, 2011

Segment Data

Segment Data

2. Segment Data

The Company has two reportable segments, Visiting Nurse (VN) and Personal Care (PC), and has service locations in Florida, Kentucky, New Jersey, Connecticut, Ohio, Massachusetts, Missouri, Alabama, Illinois, Pennsylvania and Indiana.  Reportable segments have been identified based upon how management has organized the business by services provided to customers and the criteria in ASC 280, Segment Reporting.  The Company does not allocate certain expenses to the reportable segments.  These expenses are included in corporate expenses below.

The VN segment provides skilled medical services in patients’ homes largely to enable recipients to reduce or avoid periods of hospitalization and/or nursing home care. VN Medicare revenues are generated on a per episode basis rather than a fee per visit or day of care. Approximately 93% of the VN segment revenues are generated from the Medicare program while the balance is generated from Medicaid and private insurance programs.

The PC segment services are also provided in patients’ homes. These services (generally provided by paraprofessional staff such as home health aides) are generally of a custodial rather than skilled nature. PC revenues are generated on an hourly basis. Approximately 66% of the PC segment revenues are generated from Medicaid and other government programs while the balance is generated from insurance programs and private pay patients.

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Net service revenues:
Visiting Nurse	$	71,208	$	74,947	$	143,897	$	146,488
Personal Care	10,513		10,175		20,417		19,946
	81,721		85,122		164,314		166,434
Operating income before corporate expenses:
Visiting Nurse	11,806		17,698		24,816		33,581
Personal Care	1,242		1,382		2,701		2,558
	13,048		19,080		27,517		36,139
Corporate expenses	4,720		5,059		9,587		9,572
Operating income	$	8,328	$	14,021	$	17,930	$	26,567
Interest expense, net	44		61		99		150
Income tax expense	3,334		5,618		7,177		10,632
Net income	$	4,950	$	8,342	$	10,654	$	15,785