NOTE 10 - SEGMENT DATA

At January 1, 2016, the Company has two divisions, Home Health care and Healthcare Innovations. The Home Health care division is comprised of two reportable segments, Visiting Nurses Services (VN or Visiting Nurse) and Personal Care Services (PC or Personal Care). Healthcare Innovations is also a reportable segment.

Consistent with information given to the chief operating decision maker, the Company does not allocate certain corporate expenses to the reportable segments. These expenses are included in Unallocated below. The Company evaluates the performance of its business segments based on operating income. Intercompany and intersegment transactions have been eliminated. Segment information within the consolidated financial statements have been recast for all periods presented to conform with the new segment reporting structure.

The Company’s 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 94% of the VN segment revenues are generated from the Medicare program, while the balance is generated from Medicaid and private insurance programs.

The Company’s 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 83% 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.

The Company’s Healthcare Innovations business segment was created to house and separately report on our developmental activities outside the traditional home health business platform. These activities are intended ultimately, whether directly or indirectly, to benefit the Company’s patients and payers through the enhanced provision of home health services. The activities all share a common goal of improving patient experiences and quality outcomes while lowering costs. They include, but are not limited to, items such as: technology, information, population health management, risk-sharing, care coordination and transitions, clinical advancements, enhanced patient engagement and informed clinical decision.


	Fiscal Year ended
	January 1, 2016		December 31, 2014		December 31, 2013
Net service revenues
Home Health
Visiting Nurse	$	401,051	$	380,788	$	263,789
Personal Care		127,712		112,497		92,927
Healthcare Innovations		3,451		2,544		196
	$	532,214	$	495,829	$	356,912

Operating income (loss)
Home Health
Visiting Nurse	$	49,872	$	42,899	$	29,533
Personal Care		14,170		12,453		11,599
Healthcare Innovations		(1,217)		(13)		(482)
Unallocated		(30,722)		(30,862)		(25,857)
	$	32,103	$	24,477	$	14,793

Identifiable assets
Home Health
Visiting Nurse	$	310,317	$	259,521
Personal Care		111,524		67,238
Healthcare Innovations		22,024		9,254
Unallocated		20,904		9,245
	$	464,769	$	345,258

Identifiable liabilities
Home Health
Visiting Nurse	$	31,570	$	28,180
Personal Care		24,425		19,498
Healthcare Innovations		1,525		191
Unallocated		133,349		64,197
	$	190,869	$	112,066

Noncontrolling Interest - Redeemable
Healthcare Innovations	$	3,639	$	3,639		3,639

Capital expenditures
Home Health
Visiting Nurse	$	1,388	$	465	$	764
Personal Care		203		149		267
Healthcare Innovations		108		—		—
Unallocated		1,418		617		1,471
	$	3,117	$	1,231	$	2,502

Depreciation and amortization
Home Health
Visiting Nurse	$	1,210	$	1,250	$	1,004
Personal Care		264		271		224
Healthcare Innovations		97		—		—
Unallocated		2,637		2,582		1,634
	$	4,208	$	4,103	$	2,862