NOTE 10 - SEGMENT DATA

At December 30, 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 95% 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.



	2016		2015		2014
Net service revenues
Home Health
Visiting Nurse	$	436,147	$	401,051	$	380,788
Personal Care		161,367		127,712		112,497
Healthcare Innovations		26,027		3,451		2,544
	$	623,541	$	532,214	$	495,829

Operating income (loss)
Home Health
Visiting Nurse	$	56,574	$	49,872	$	42,899
Personal Care		13,509		14,170		12,453
Healthcare Innovations		5,657		(1,217)		(13)
Unallocated		(40,808)		(30,441)		(30,672)
	$	34,932	$	32,384	$	24,667

Identifiable assets
Home Health
Visiting Nurse	$	456,841	$	310,317
Personal Care		116,085		111,524
Healthcare Innovations		60,159		22,024
Unallocated		25,627		20,904
	$	658,712	$	464,769

Identifiable liabilities
Home Health
Visiting Nurse	$	31,792	$	31,570
Personal Care		25,241		24,425
Healthcare Innovations		5,076		1,525
Unallocated		292,423		133,349
	$	354,532	$	190,869

Noncontrolling Interest - Redeemable
Healthcare Innovations	$	2,256	$	3,639		3,639

Capital expenditures
Home Health
Visiting Nurse	$	1,099	$	1,388	$	465
Personal Care		294		203		149
Healthcare Innovations		908		108		—
Unallocated		3,905		1,418		617
	$	6,206	$	3,117	$	1,231

Depreciation and amortization
Home Health
Visiting Nurse	$	1,124	$	1,210	$	1,250
Personal Care		301		264		271
Healthcare Innovations		1,200		97		—
Unallocated		1,820		2,356		2,392
	$	4,445	$	3,927	$	3,913